Information technology, knowledge management and environmental dynamism as drivers of innovation ambidexterity: a study in SMEs

Does digital economy keep enterprises out of green innovation trouble? evidence from "double carbon" goal

The proposal of the "dual carbon" targets has provided direction for promoting China's economic green transformation and green innovation. As enterprises are important entities driving technological innovation in China, enhancing their green innovation capabilities holds significant practical significance for reducing carbon emissions. While the flourishing development of the digital economy currently provides new avenues and impetus for enterprise green innovation, research on the micro-level effects of green innovation driven by digital economy is still lacking. Therefore, based on data from Chinese cities spanning 2010 to 2021 and micro-level data of listed enterprises, this paper employs fixed effect model and intermediary effect model to empirically test the effect and mechanism of urban digital economy development on the quality and quantity of enterprise green innovation. Additionally, it investigates the carbon emission reduction effect resulting from digital economy development. The findings are as follows: (1) The development of digital economy exhibits a significant green innovation effect, effectively enhancing both the "quality and quantity" of enterprise green innovation. Particularly noteworthy is its impact on the quality of green innovation in enterprises, a result corroborated by several robustness tests. (2) Promoting regional knowledge spillover and alleviating enterprise financing constraints emerge as mechanisms through which the digital economy enhances the "quality and quantity" of enterprise green innovation. (3) Heterogeneity testing reveals that the digital economy exerts a greater green innovation effect on enterprises located in regions characterized by higher environmental regulations, high-tech industries, and state-owned enterprises. (4) Further analysis demonstrates that the digital economy effectively reduces enterprises carbon emissions and enhances their carbon performance by driving green innovation, thus providing endogenous impetus for achieving the "dual carbon" goals. By examining the effects and mechanisms of green innovation driven by digital economy from the perspectives of promoting knowledge spillover and alleviating financing constraints, this study enriches theoretical research on the relationship between the digital economy and green innovation at the enterprise micro-level. It offers new insights for governments in formulating green innovation policies and serves as a reference for green innovation decision-making in other developing countries.

Organizational ambidexterity: The role of technological capacity and dynamic capabilities in the face of environmental dynamism

Organizational ambidexterity has been widely established as necessary for economic sustainability in the financial services sector. Organizational ambidexterity is an organization's ability to be aligned and efficient in management to meet business needs while simultaneously adapting to environmental changes. To meet the challenges of the new digital economy, banking organizations require substantial technological changes and must also recognize that the banking business itself is one of technology. Organizational ambidexterity is essential for financial sector businesses, but their relationship and relative merits are unclear. This research focuses on the role of technological capacity and dynamic capability of the banking sector in Indonesia in an effort to achieve organizational ambidexterity in the face of a dynamic environment. This research uses quantitative methods by surveying leaders from Indonesian commercial banks and analyzed using the SMART PLS program. Our investigation found that technological capacity influences organizational Ambidexterity, with the link becoming stronger when mediated by an organization's dynamic capability. In the meantime, environmental dynamism has no impact on the organizational ambidexterity of the banking sector in Indonesia. Our findings also indicate that the associated security risk will increase if a bank improves its technological capacity in a highly dynamic environment. This paper is an empirical study of technological capacity and presents a method for creating organizational ambidexterity through dynamic capability, especially in the banking sector.

Strategic Approach to Configurational Analysis of Entrepreneurial Orientation, Strategic Networking, and SME Performance within Emerging Markets of Selected Southeast European Countries

The beneficial relationship of entrepreneurial orientation with performance has been extensively acknowledged in the literature. However, empirical evidence is not straightforward and requires consideration of the interplay of different variables, context, and rationales through which this causal complexity of the performance-enhancing mechanism of entrepreneurial orientation influences firm performance. In this paper we examine the way the entrepreneurial behavior of the organization unfolds and affects performance through specific configurations resulting from the simultaneous interaction of strategic networking and dynamic environment in the setting of Southeast European SMEs. We apply hierarchical regression to a sample of 963 small and medium-sized enterprises. Empirical findings provide support for applying the configurational approach and show that companies of high entrepreneurial orientation and high strategic networking operating in a dynamic environment achieve the highest effect on a business performance. Research results further indicate that strategic networking is a mechanism that achieves the greatest efficiency in a dynamic environment and with the presence of a firm’s entrepreneurial orientation. According to the research results, implications for research and practice are suggested.

Adoption of AI in response to COVID-19-a configurational perspective

Although the importance of artificial intelligence (AI) has often been highlighted in strategic agility and decision outcomes, whether it helps firms strengthen their competitiveness and the means firms use to achieve such competitiveness are still under-researched. Our research thus joins the recent discussion on digitalization trends and strategic responses to COVID-19 to better understand how firms strengthen their competitiveness during such challenging times. Namely, this study incorporates the strategic responses to COVID-19 into the technology-organization-environment (TOE) framework by investigating the impacts of different configurations of TOE contexts and strategic responses on a firm's competitive advantage. We used fuzzy-set qualitative comparative analysis to investigate how TOE contexts and strategic responses integrate into configurations and impact a firm's competiveness. By applying a configurational approach with data from 514 exporting firms in China, we find a strong indication of the equifinality of different strategies, indicating that multiple strategic paths can be used to respond to crises. The adoption of AI, while important, is not sufficient to enhance a firm's competitiveness. Our results stress the significance of data quality, organizational resources and capabilities, and digital business model innovation for AI adoption. We also identify successful strategic paths of AI adoption aversion and ambidextrous strategies. The findings have practical implications for firms seeking effective strategies to respond to future crises and sustain their competitive advantages.

Digitalization and artificial knowledge for accountability in SCM: a systematic literature review

Purpose

In this study, the authors examine artificial knowledge as a fundamental stream of knowledge management for sustainable and resilient business models in supply chain management (SCM). The study aims to provide a comprehensive overview of artificial knowledge and digitalization as key enablers of the improvement of SCM accountability and sustainable performance towards the UN 2030 Agenda.

Design/methodology/approach

Using the SCOPUS database and Google Scholar, the authors analyzed 135 English-language publications from 1990 to 2022 to chart the pattern of knowledge production and dissemination in the literature. The data were collected, reviewed and peer-reviewed before conducting bibliometric analysis and a systematic literature review to support future research agenda.

Findings

The results highlight that artificial knowledge and digitalization are linked to the UN 2030 Agenda. The analysis further identifies the main issues in achieving sustainable and resilient SCM business models. Based on the results, the authors develop a conceptual framework for artificial knowledge and digitalization in SCM to increase accountability and sustainable performance, especially in times of sudden crises when business resilience is imperative.

Research limitations/implications

The study results add to the extant literature by examining artificial knowledge and digitalization from the resilience theory perspective. The authors suggest that different strategic perspectives significantly promote resilience for SCM digitization and sustainable development. Notably, fostering diverse peer exchange relationships can help stimulate peer knowledge and act as a palliative mechanism that builds digital knowledge to strengthen and drive future possibilities.

Practical implications

This research offers valuable guidance to supply chain practitioners, managers and policymakers in re-thinking, re-formulating and re-shaping organizational processes to meet the UN 2030 Agenda, mainly by introducing artificial knowledge in digital transformation training and education programs. In doing so, firms should focus not simply on digital transformation but also on cultural transformation to enhance SCM accountability and sustainable performance in resilient business models.

Originality/value

This study is, to the authors' best knowledge, among the first to conceptualize artificial knowledge and digitalization issues in SCM. It further integrates resilience theory with institutional theory, legitimacy theory and stakeholder theory as the theoretical foundations of artificial knowledge in SCM, based on firms' responsibility to fulfill the sustainable development goals under the UN's 2030 Agenda.

Integrating knowledge management and dynamic capabilities through TISM modeling and meta-analysis

Purpose

This paper aims to explore the interaction between knowledge management (KM) and dynamic capabilities (DCs) to identify the factors that attribute to their integration. The amalgamation of the DC and KM will result in a firm’s superior performance. This study will, therefore, use meta-analysis to identify the factors and use the “total interpretive structural modelling (TISM)” to establish the hierarchy and inter-relationships concerning the identified factors.

Design/methodology/approach

The research in this paper uses an exploratory design. This entails reviewing the literature on KM and DCs by adopting a scientific methodology, i.e. meta-analysis. A structural interpretive framework has been developed based upon the identified factors. Further, TISM modelling has been used to develop a classified arrangement of these factors to validate the framework.

Findings

Overall, 15 factors related to KM and DCs, based upon 220 empirical studies have been identified. The validated framework, based upon heterogeneous factors, describes how the interactions between KM and DCs can facilitate a competitive advantage.

Research limitations/implications

This study contributes towards the discussion of how efficient management of knowledge is defining the DCs of firms for improved innovation and performance. It provides practitioners with an insight into the directional linkages towards the competitive performance based on the interactions of KM and DCs. For researchers, the study could serve as an initial outline for interpretation of the linkages and theory building concerning KM and DCs, as the proposed framework draws upon scientific review and expert interpretations.

Originality/value

The framework is the result of the qualitative modelling technique based upon the heterogeneous factors derived out of the meta-analysis. It will provide meaningful insight into the field of KM and DCs. The derived framework shall help corroborate the opinion of experts with the literature in the field of strategy and management.

Developing structural modelling of inter-partner factors of international joint ventures performance

Purpose

The study aims to identify, analyse and develop a model for measuring the inter-relationship and interaction among the inter-partner factors. International joint ventures (IJVs) literature has scantly studied the interactions and inter-relationships among the inter-partner factors of IJVs performance. To address this gap, this research creates a hierarchical relationship framework among the inter-partner factors of IJVs performance.

Design/methodology/approach

The comprehensive literature review is used to identify the factors and possible relationships between the factors and IJVs performance. M-TISM (modified total interpretive structural modelling) methodology is used to examine the relationship among the factors of IJVs performance.

Findings

This study highlights 12 inter-partner factors that affect IJVs performance. The results suggest that size asymmetry, commitment, goal incongruency, competitive overlap, trust, control, the interdependency of resources, cooperation, economic distance, cultural distance, geographical distance and administrative distance significantly impact IJVs performance. Commitment is found to be a linkage variable as it has high dependence and driving power. Goal incongruency and competitive overlap have high driving power.

Research limitations/implications

This study gives a proposed list of critical inter-partner factors for policymakers and practitioners to consider when developing rules or recommendations to improve IJVs performance. The focus of policymakers should be on economic and geographical distance, followed by cultural distance, competitive overlap, goal incongruency, size asymmetry and administrative distance to improve inter-relationship among the partners in IJVs. The work contributes to the academician by presenting a modified TISM model that highlights the significance of ambidexterity in driving the performance of IJVs.

Originality/value

This study fills a gap in the literature by analysing the interactions among the inter-partner parameters that influence the performance of IJVs. It offers insights into the variables, such as driver dependence and the relationships between the variables.

Perceived Benefits of Sustainable Digital Technologies Adoption in Manufacturing SMEs

This study examines the perceived benefits of adopting sustainable digital technologies through the mediation effect of leaders’ attitudes in manufacturing small and medium-sized enterprises (SMEs) in Malaysia. Data were collected from an online survey of 389 respondents. The results exhibited that the perceived benefits, particularly perceived cost-effectiveness and perceived communication effectiveness, had a substantial positive influence on the adoption of sustainable digital technologies adoption compared to perceived usefulness and ease of use. The leader’s attitude fully mediates the association between perceived benefits and digital sustainable technologies adoption. This study has contributed to the rising body of knowledge relevant to adopting sustainable digital technologies in SMEs. It offers strategies to develop management skills and strong competencies in sustainable digital technologies solutions.

The Effect of IS-Innovation Strategy Alignment on Corporate Performance: Investigating the Role of Environmental Uncertainty by Heterogeneity

The study investigates how the alignment at the processing levels between information systems (IS) strategy, through strategy-as-practice approach, and innovation influences corporate performance (CP) under environmental uncertainty from 856 Brazilian firms by PLS-SEM. The results indicated that all approaches of alignment between IS strategy and innovation have strong influences on CP. The alignment with ambidextrous innovation had a 62% higher contribution on CP than alignment between exploitative innovations. Additionally, exploitative innovations had positive effects on CP under high hostility environments; and explorative and ambidextrous innovations had positive large and strong effects on CP under high dynamic environments.

Impact of the Extended Digital Eco-Dynamic on Innovation Performance: An Empirical Study on Small E-Businesses in Indonesia

This study will answer the factors that influence the innovation performance of small e-businesses in Indonesia during the COVID-19 pandemic. The results of this study are expected to contribute to the development of innovation theory by enriching knowledge in the field of management science in general, especially entrepreneurship theory, especially those related to innovation performance, IT ambidexterity, dynamic capability, environmental uncertainty, and Resource-Induced Coping Heuristic (RICH). This study proposes novelty by examining the effect of acquiring, developing, and protecting resources as dimensions of RICH on innovation performance in turbulent conditions due to the COVID-19 pandemic. This theoretical aspect forms the basis for further research that will develop into a broader scope related to innovation performance in entrepreneurship in Indonesia. This fundamental research uses a questionnaire as a data collection tool tested for validity and reliability before being tested empirically using structural equation modeling partial least squares. Research shows that among the dimensions of RICH, protecting resources is the most influential on innovation performance, followed by acquiring resources and developing resources. Dynamic capability positively affects innovation performance. Environmental uncertainty positively affects dynamic capability. Environmental uncertainty positively affects innovation performance. IT capability positively affects dynamic capability. IT capability positively affects innovation performance. The development of small e-businesses needs to get significant attention. Small e-businesses need to develop mutually beneficial business partnerships and improve the quality of their human resources.

The Impact of Knowledge Management Capabilities on Innovation Performance from Dynamic Capabilities Perspective: Moderating the Role of Environmental Dynamism

As an important path to enhance the innovation performance of enterprises, knowledge management has received much attention in recent years. However, most of the existing literature on knowledge management and innovation performance is based on a static perspective, and ignores the influence of dynamic changes in the environment. This study intends to explore the relationship between dynamic knowledge management capability and innovation performance as well as examine the moderating effect of environmental dynamism. The questionnaire survey approach is used in this study and the data is collected from 253 sample enterprises in China. To estimate the proposed relationships in the theoretical model, this study adopts hierarchical Multiple Regression (MR) and Moderated Multiple Regression (MMR) methods. The results show that all dimensions of dynamic knowledge management capability have different degrees of positive influence on innovation performance. Moreover, it was also confirmed that there are different moderating effects of environmental dynamism on the relationship between the dimensions of knowledge management capability and innovation performance. This study can contribute to enriching the theoretical research of dynamic knowledge management capability and innovation performance, and offer scientific guidance for decision making to efficiently enhance the enterprise’s knowledge management level and innovation performance. Moreover, the findings can also provide valuable insights for enterprises to make use of KM capabilities to enhance innovation performance in practice.

Strategic orientations and firm performance: the role of information technology adoption capability

Purpose

This study aims to investigate the multiple entrepreneurial, technology and marketing orientations effects on education service firm performance (FP) and the mediating role of information technology (IT) adoption capability.

Design/methodology/approach

Empirical research based on 535 education service small and medium enterprises (SMEs) in Indonesia and Singapore. Various validity and reliability tests were carried on before the actual analysis was conducted using structural equation modeling.

Findings

The results conclude that IT adoption capability is crucial for entrepreneurial and technology orientation (TO) to produce higher FP. This finding supports that IT capability is effective at helping firms implement their strategic orientations (SOs). In addition, market orientation (MO) influence on FP is more direct than other orientations under investigation.

Practical implications

This study suggests that SOs, particularly entrepreneurial and technology, enable managers to improve FP via the development of IT adoption capability. The result shows that firms with multiple SOs would be able to respond to market challenges, utilize new technology and become more innovative, which eventually yields higher performance.

Originality/value

This study extends the understanding of multiple SOs influence on FP using the mechanism of IT adoption capability.

Entrepreneurial Leadership and Entrepreneurial Success: The Role of Knowledge Management Processes and Knowledge Entrepreneurship

Various leadership styles have been widely studied to understand success. However, little research has empirically explored how entrepreneurial leadership (EL) influences entrepreneurial success (ES). Moreover, the role of knowledge management processes (KMPs) and knowledge entrepreneurship (KE) have been overlooked. Thus, using a knowledge-based view theory, this study aims to determine the relationship between EL and ES, mediated through KMPs. In addition, for a better understanding, the study also used KE as a moderator. A quantitative survey method has been employed to collect data from 390 entrepreneurial venture (EV) owners, co-founders, and managers in tech-oriented ventures (IT and Software-based) operating in Pakistan. Smart partial least squares (PLS) statistical software was used to analyze the impact mechanism of EL on ES through the structural equation model. The findings revealed that EL style positively influences ES. In addition, KMPs fully mediate the relationship between EL and ES. Furthermore, KE as a moderator, strengthens the relationships between EL and the knowledge management process. Theoretically, this study has complemented and enriched research on the influence mechanism between EL and ES. Practically, this study has important implications for leaders, managers, and founders to promote KMPs to achieve ES.

Contextual Ambidexterity: Tackling the Exploitation and Exploration Dilemma of Innovation Management in SMEs

In innovation management (IM), two perspectives typically come together, characterized with the term ambidexterity: a clear orientation towards the best possible use of resources (exploitation) and, at the same time, completely new ideas and novel approaches (exploration). We consider contextual ambidexterity suitable to address this dilemma in small- and medium-sized enterprises (SMEs). Based on findings from five German SMEs, we argue that training and using ‘conventional’ IM for exploitation and ‘agile’ IM for exploration could be most feasible. We develop a generic conceptual model with high practical relevance for SMEs and their innovation projects.

Resolving Strategic Dilemmas in Ambidextrous Organizations: An Integrated Second-Order Factor Model Perspective

Drawing on relevant literature, this study investigates the process of realizing innovation ambidexterity (IA) by proposing a theoretical model and adopting a specifically integrated mechanism with the aim to resolve strategic dilemmas in ambidextrous organizations (AOs). We analyzed a sample of 136 cross-sectional surveys collected from business managers of 132 medium- and high-tech firms in China by employing a structural equation model combined with moderation analysis to test our hypotheses. Our findings indicate that the second-order theoretical model fits the data well and AO, represented by a higher-order construct, positively affects IA. Instead of structural ambidexterity, balanced contextual ambidexterity and radical performance management can be effectively applied as the factors of the second-order construct; the design comprising balanced contextual ambidexterity and performance management is thus helpful in resolving strategic dilemmas. Our findings demonstrate that Chinese firms, as technology latecomers, are more inclined to conduct near-radical innovation. The risk of exploration crowding out exploitation efforts exists in Chinese high-tech firms. Furthermore, we provides greater insights into the moderating impact of intra-organizational practice on IA based on the fact that performance measurement balance (PMB) did not directly influence the achievement of IA and clarifies the positive role that PMB plays in improving IA.

COUPLED OPEN INNOVATION AND PERFORMANCE IN SMES: THE ROLE OF KNOWLEDGE CAPABILITIES AND ENVIRONMENTAL DYNAMISM

This research proposes to shed light on the antecedents and outcomes of coupled open innovation in the specific context of small and medium-sized enterprises (SMEs). Drawing on the open innovation paradigm, knowledge-based view (KBV), and contingency theory, the paper constructs and tests a research model that investigates the effect of coupled open innovation on firm performance; the impact of knowledge management capability, knowledge appropriation capability, and environmental dynamism on coupled open innovation; and also the mediating role of collaborative open innovation practices. Using a sample of 228 SMEs operating in the Tunisian manufacturing industry, our results based on structural equation modeling (SEM) demonstrate that coupled open innovation positively and significantly influences firm performance. Furthermore, our findings confirm the crucial impact of knowledge management capacity and knowledge appropriation capacity in the implementation of coupled open innovation approach. The role of environmental dynamism in the adoption of collaborative practices is also proven in the SME context. Moreover, the results of our study add to the existing literature by empirically demonstrating the potential mediating role of coupled open innovation in the relationships that link knowledge management capacity, knowledge appropriation capacity, and environmental dynamism with SME performance, respectively. In this sense, this paper goes even further in the research on open innovation, as one of the first to fill an interesting gap regarding the antecedents of coupled open innovation and its implication on performance in the specific context of SMEs. In doing so, our research, through its results, provides interesting suggestions for SME managers who implement or intend to implement coupled open innovation to improve the performance of their company.

Knowledge Management Processes and Performance: Key Role of IS Strategies in Knowledge Capture and Utilisation

This research examines the interrelation of knowledge generation (KG) and knowledge sharing (KC) and how they influence IT infrastructure (ITI) and strategic decision support systems (SDSS) to enhance business process performance (BPP) and firm performance (FP). Furthermore, the objective of this study is to emphasise the importance of applying information systems strategies (ISS) such as knowledge capture and utilisation to make better firm processes to boost firm performance in knowledge management process-intensive organisations. The study surveyed 261 Brazilian companies and used partial least squares path modelling to test the hypotheses proposed herein. The research findings showed that KG and KC influence ITI. Additionally, it also showed that ITI has full mediation in its relationship with KG and SDSS and partial mediation in its relationship with KC on the SDSS. Finally, BPP demonstrated full mediation in its relationship with SDSS and FP. The research findings contribute to firms understand how BPP and FP are affected through ISS embedded into knowledge and utilisation coupled with knowledge generation and sharing.

The Role of Accounting Information System and Knowledge Management to Enhancing Organizational Performance in Iraqi SMEs

Small and Medium Enterprises (SMEs) in Iraq have experienced low performance due to the limited usage of accounting information systems (AIS) and the inability to exploit knowledge of management capabilities (KMC). These deficiencies have led to competitive pressures in the marketplace that have adversely affected their sales and production. This study investigates the role of AIS in terms of operation support, knowledge support, regulatory support, and the role of KMC, including knowledge acquisition, knowledge transfer, and knowledge utilized to enhance organizational performance in Iraqi SMEs. The target population was managers and owners in SMEs using AIS in Iraq’s cities. A non-probability purposive sampling technique was used to collect the data, and self-administered printed questionnaires were distributed to the SME managers and owners; 236 questionnaires were used for analysis. Partial least squares was used to examine the role of AIS and the meditation of KMC through second-order analysis. The results showed that AIS and KMC have a positive and significant role in enhancing organizational performance. The study also found that KMC partially mediated between AIS and organizational performance. The findings show that managers and owners of SMEs should focus on AIS and pay more attention to KMC to improve organizational performance.

A Systematic Literature Review on 30 Years of Empirical Research on Information Systems Business Value

Information Systems Business Value (ISBV) has been a key research topic for the IS research community. While the vast majority of ISBV research demonstrates the positive relationship between IS and firm performance, the fundamental question of the causal relationships between IS and business value remains partly unexplained. Moreover, researchers do not share a unified understanding of ISBV concepts. Therefore, this research intends to synthesize the past 30 years of empirical ISBV research, identify the gaps and shortcomings, conceptualize the ISBV concepts, and propose possibilities for further research that will widen the current narrowly shared ISBV bottom line. We aim to synthesize (1) different operationalization of concepts in existing ISBV research; (2) IS determinants, consequences, and the relations among the variables; (3) the role of contextual factors; and (4) the adopted theoretical views.

Research on Influencing Factors of Technological Independent Innovation of Equipment Manufacturing Enterprises from the Perspective of Iceberg Theory

Technological independent innovation is not only the internal need for equipment manufacturing enterprises to improve their core competitiveness but also the urgent requirement to promote economic and social development. Based on the development status of technological independent innovation of equipment manufacturing enterprises, this study analyzes the explicit and implicit influencing factors of technological independent innovation using iceberg theory and obtains the multilevel hierarchical structure model of explicit and implicit influencing factors and its key influencing factors using the integrated DEMATEL-ISM method. The three aspects of enterprises give suggestions and countermeasures for the existing problems, put forward correct and effective guidance for the technological independent innovation of equipment manufacturing enterprises, and lay a solid foundation for China’s industrial revitalization and economic development.

The differentiated role of organizational ambidexterity and organizational innovation in the subsidiary reverse knowledge transfer process

Purpose

This paper underscores how organizational ambidexterity and organizational innovation play differentiated roles in the subsidiary reverse knowledge transfers (RKT). The authors argue that both organizational ambidexterity and organizational innovation play a positive but differentiated role in the RKT process in that the former positively influences subsidiary knowledge creation, whereas the latter positively influences subsidiary knowledge transfers.

Design/methodology/approach

Data were collected from 289 foreign subsidiaries operating in Brazil. Hypotheses were developed and tested by applying partial least squares structural equation modeling.

Findings

The results supported the hypotheses and showed that organizational ambidexterity promotes knowledge creation, and that organizational innovation facilitates knowledge transfers.

Research limitations/implications

The paper offers implications with regard to drivers of subsidiary investments and actions of subsidiary managers vis-à-vis the subsidiary objectives of knowledge creation and/or transfers.

Originality/value

Showing the different roles of organizational ambidexterity and organizational innovation, this paper reveals some underlying mechanisms of the RKT process and contributes by explaining the competitive heterogeneity of subsidiaries, with impacts on subsidiary management’s evolutionary and resource dependence perspective.

A discriminant analysis of high and low-innovative firms: the role of IT, human resources, innovation strategy, intellectual capital and environmental dynamism

Purpose

This paper aims to examine the effect of technological, organizational and environmental factors on the level of innovation outcomes in manufacturing small- and medium-sized enterprises (SMEs).

Design/methodology/approach

Drawing on the technology-organization-environment theory this paper conducts a discriminant analysis of firms’ innovation level based on a data set of manufacturing SMEs.

Findings

The results show that low- and high-innovative firms can be distinguished in terms of information technology (IT) knowledge and infrastructure, commitment-based human resources (HR) selection practices, exploitative innovation and organizational capital.

Practical implications

The study findings support the idea that innovation is a complex phenomenon explained by multiple factors. As a consequence, firms need to devote extra efforts to develop IT knowledge and infrastructure, commitment-based HR selection practices and organizational capital because these are crucial for obtaining greater innovation outcomes. In addition, the identification of exploitative innovation as a strong discriminant variable highlights that the most effective way to be a highly innovative SME is through incremental innovation, which permits the firm to capitalize as much as possible on previous exploratory efforts.

Originality/value

Although many studies have highlighted that innovation is more challenging for SMEs than for their larger counterparts, the vast majority of studies has been conducted in large companies. This paper extends prior literature by analyzing the discriminant variables that may distinguish between low- and high-innovative manufacturing SMEs.

Firing on all cylinders: Configuring information technology around the constituents of corporate entrepreneurship to outperform in SME sector

This study has examined how small and medium enterprises (SMEs) may enhance their performance under different settings of information technology (IT) capabilities and corporate entrepreneurship (CE). Established on the dynamic capability view, the researchers have analyzed the connections between IT capabilities and CE, in addition to the performance results of SMEs. The research has explored these novel relationships by utilizing partial least square-structural equation modeling (PLS-SEM) with a data sample of 447 SMEs of the manufacturing sector in Pakistan. The findings present that IT capabilities positively influence the market and financial performance of SMEs through the mediating role of CE dimensions. The study uniquely determines the mediating role of dimensional effects of corporate entrepreneurship between IT capabilities and performance outcomes of firms. Thus, the study would enable the management of SMEs to realize the potential of IT-related CE dimensions and their use to improve firms' performance.

Viewpoint: The co-evolution of knowledge management and business model transformation in the post-COVID-19 era: insights based on Chinese e-commerce companies

Purpose

This study aims to answer the question of how business models (BMs) maintain stability while coping with environmental uncertainties. This study proposes a dynamic co-evolution of knowledge management and business model transformation based on a comparative analysis of the focal firms’ BMs and their main partners in two e-commerce ecosystems in China.

Design/methodology/approach

The open data of listed companies regarding the introduction of emerging topics on the transformation tendency of BMs in the post-COVID-19 business world is qualitatively analysed. The theoretical foundation is based on a critical review of the literature.

Findings

Three aspects of the co-evolution between knowledge management and business model transformation are introduced. These three aspects are as follows: knowledge integration helps with multi-system business integration and decision-making collaborations; knowledge sharing helps to enhance cognitive ability and network value based on businesses; and the creation of new knowledge helps enrich the knowledge base and promote the transformation of BMs.

Research limitations/implications

Solely attributing a firm’s ability to cope with environmental uncertainties to its business model weakens the importance of its knowledge management. This study argues that the co-evolution between knowledge management and business model transformation also plays a key role in a firm’s response to issues post-COVID-19.

Originality/value

This study calls for the development of a normative theory of co-evolution between knowledge management and business model transformation, implying uncharted territories of knowledge management based on interaction with business model designs in e-business ecosystems.

The effect of ICT and higher-order capabilities on the performance of Ibero-American SMEs

Information and communication technologies (ICT) has the ability to create value by enabling other firm capabilities. Based on the ICT-enabled capabilities perspective, this study explores the direct and indirect effects between lower- and higher-order capabilities, such as ICT, knowledge management capability (KM) and product innovation flexibility (PIF), on the performance of Ibero-American small- and medium-sized enterprises (SMEs). This paper uses second-order structural equation models to test the research hypotheses with a sample of 130 Ibero-American SMEs. The results contribute to filling the gap in the SME-focused literature on empirical studies examining ICT-enabled capabilities and firm performance. The results show an enabling effect of ICT on higher-order capabilities, such as KM and PIF, which, by acting as mediating variables, create value and improve performance through innovation in firms.

Failure learning and entrepreneurial resilience: the moderating role of firms’ knowledge breadth and knowledge depth

Purpose

Drawing on the knowledge-based view, the purpose of this study is to investigate the differential effects of failure normalization (FN) and failure analysis (FA) on entrepreneurial resilience (ER) and examines how firms’ knowledge breadth (KB) and knowledge depth (KD) moderate these effects in distinctive ways.

Design/methodology/approach

The study uses a mixed-methods approach, including a two-wave survey study among 226 entrepreneurial high-tech firms in China and a qualitative study.

Findings

The findings reveal that FA has a stronger positive effect on ER than FN. KB enhances the effect of FA on ER, whereas KD enhances the effect of FN on ER but buffers the effect of FA on ER.

Practical implications

The study advocates that entrepreneurs need to be aware of the importance of ER and strengthen the reflection on failure. Additionally, the study suggests that entrepreneurs should match FN and FA with firms’ knowledge characteristics. With this match, KB and KD can exert greater impacts on the effect of failure learning on ER.

Originality/value

Knowledge can influence the effect of learning on firm capability. However, such an effect in entrepreneurial firms linking to ER remains to be explored. This study contributes to ER from the failure learning perspective and extends knowledge management theory in the entrepreneurship context.

Knowledge strategy planning and information system strategies enable dynamic capabilities innovation capabilities impacting firm performance

Purpose

Many studies have not fully explored the relationship between knowledge and information system strategies (ISS) and their overall impact on firm performance (FP). In an attempt to address this knowledge gap, this study draws on the dynamic capabilities view, and on recent literature on knowledge strategy planning (KSP), and examines the alignment between KSP and ISS to enable dynamic capabilities innovation capabilities (DCIC) to gain FP.

Design/methodology/approach

The survey examined empirical data from 234 Brazilian companies using the partial least squares path modeling to test the hypotheses proposed herein.

Findings

The empirical results confirmed that both KSP and ISS have a positive impact on DCIC. Furthermore, the results indicated that FP was positively impacted through DCIC. The results indicated that the alignment between KSP and ISS positively impacts DCIC and ultimately FP.

Research limitations/implications

The data was collected from 234 Brazilian companies in a country classified as a developing economy. Future studies could investigate the impact of KSP and ISS on FP in developed economies. The practical implication of the study required managers to be knowledgeable about the value of alignment between KSP and IT capabilities involving more practitioners in the strategy-as-practice to create innovation capabilities and enhance FP.

Originality/value

This is one of the earliest studies that has investigated the relationships between KSP and ISS and their impact on FP within a developed economy context. The relationship between all constructs that have not been addressed previously contributes to extend the literature on KSP, ISS and dynamic capabilities view.

ENVIRONMENT TURBULENCE EFFECT ON THE DYNAMICS OF INTELLECTUAL CAPITAL ACCUMULATION AND AMBIDEXTROUS INNOVATION

The aim of this paper is to study the influence of the environment on the link between intellectual capital and ambidextrous innovation. The environment has been considered taking into account the technological turbulence and the market turbulence. Using a questionnaire survey approach, data were obtained from 155 directors representing Tunisian SMEs. Two main theoretical implications were highlighted. The first is the extent of the intellectual capital contribution, with its human, organizational and relational components, to the reading of the ambidextrous innovation within the organization. The second is the moderating role of environmental turbulence. From a practical side, the study tried to reap the intellectual capital benefits and the intermediate effect of environmental turbulence to improve the manager’s yields in term of innovation. Interestingly, results show that human capital affects ambidextrous innovation. It influences radical innovation more than incremental innovation. Relationship capital promotes only incremental innovation. Organizational capital influences ambidextrous innovation. Its effect on incremental innovation is greater than on radical innovation. Both technological and market turbulences moderate negatively the human capital effect on incremental innovation. Counter to our expectations, however, environmental turbulence does not moderate the interrelationships selectively between relational capital, organizational capital and ambidextrous innovation. The present study is one of the few studies conducted in Tunisia investigating the field of intellectual capital and the first studying its effect on the ambidextrous innovation in a turbulent environment.

Fostering exploitative and exploratory innovation through HRM practices and knowledge management capability: the moderating effect of knowledge-centered culture

Purpose

Given the important role of knowledge resource for organizational innovation, the purpose of this study is to examine the mediating mechanism of knowledge management capability (KMC) and the moderating role of knowledge-centered culture (KCC) in the relationship between human resource management (HRM) and firms’ innovation capabilities.

Design/methodology/approach

Analysis of moment structures and structural equation modeling are applied to examine the correlation among the constructs based on the survey data collected from 135 manufacturing firms.

Findings

The empirical findings reveal that KMC positively mediates the relationship between HRM practices and innovation capability. Especially, KCC of organization significantly fosters the impacts of HRM practices on KMC and aspects of innovation capability, namely, exploitative and exploratory innovation.

Practical implications

Chinese firms should invest in HRM practices and KMC to improve their innovation capabilities. In addition, developing KCC is suitable for Chinese firms to foster the effects of HRM practice on innovation capability.

Originality/value

By investigating the different moderated-mediation mechanisms, the paper has significantly contributed to advancing the body of knowledge of innovation theory and providing deeper insights on the correlation between HRM practices and firm’s capability for ambidextrous innovations.

Social dilemmas in knowledge sharing: an examination of the interplay between knowledge sharing culture and performance climate

Purpose

Knowledge sharing culture and performance climate are organizational interventions used by organizations to influence and shape employees’ attitudes and behavior toward knowledge sharing. While each strategy directly influences employees to respond accordingly, the interplay between the incongruent objectives of these two strategies could lead to social dilemmas in knowledge sharing. This study aims to understand social dilemmas in knowledge sharing due to the interaction between knowledge sharing culture and performance climate.

Design/methodology/approach

An experimental study using the vignette technique was performed on 240 working adults. ANOVA was conducted to examine the interplay effect between knowledge sharing culture and performance climate on knowledge sharing intention.

Findings

Results showed that performance climate moderates the effect of knowledge sharing culture on employees’ knowledge sharing intention. The findings highlight the importance of having goal congruence between knowledge sharing culture and performance climate to minimize the social dilemmas in knowledge sharing.

Originality/value

This study develops a moderation model based on the theory of social dilemma to investigate the interaction between knowledge sharing culture and performance climate and enhance the theoretical validity and exactness of the knowledge sharing literature. The findings from this study provide theoretical insights and practical implications for social dilemmas in knowledge sharing, as well as the foundation for continuous research into knowledge sharing and people management practices that may have a strong influence on employees’ knowledge sharing behavior, attitude and performance.

A Study on the Mechanisms Linking Environmental Dynamism to Innovation Performance

The purpose of our study is to examine the mechanisms that link environmental dynamism to firms’ innovation performance. Although there have been extensive studies on the effect of environmental dynamism on innovation performance, they have focused primarily on its direct effect and have resulted in rather inconsistent research findings. Thus, to explain the relationship between environmental dynamism and innovation performance more clearly, we intend to investigate the mechanisms through which environmental dynamism influences innovation performance in this study. Specifically, we aim to examine the mediation effects of strategic prospecting, absorptive capacity, and combined strategic prospecting–absorptive capacity on the relationship between environmental dynamism and innovation performance. Based on data collected from 266 small and medium-sized firms in Korea, our study has found that, assuming a causal interdependence between the mediators, both strategic prospecting and combined strategic prospecting–absorptive capacity mediate the relationship between environmental dynamism and innovation performance. It has also been found, however, that absorptive capacity alone does not mediate the relationship between environmental dynamism and innovation performance, while absorptive capacity mediates the relationship when it is linked to strategic prospecting. The results of our study further reveal that no direct effect of environmental dynamism on innovation performance exists, implying that the significant effect of environmental dynamism on innovation performance demonstrated in previous studies may be spurious in nature. Based on the findings, we present conclusions, theoretical and practical implications, and limitations with future research directions.

Knowledge management behaviors in venture capital crossroads: a comparison between IVC and CVC ambidexterity

Purpose

Institutional venture capitalists (IVCs) and corporate venture capitalists (CVCs) deploy analogous activities but adopt different approaches to financing innovation and value creation for venture-backed firms. Thus, this paper aims to investigate their potential ambidexterity as a result of knowledge management (KM) strategies and processes.

Design/methodology/approach

After a focused literature review showing evidence of KM behaviors as a source of potential ambidexterity for IVCs and CVCs, descriptive, inferential and discriminant analyses on the 15 most active IVCs and CVCs in the world in 2019 are presented. Correlations between numbers of deals, prevailing entrepreneurial intensity and potential ambidexterity are investigated.

Findings

Specific differences are analyzed from a KM perspective, revealing that the number/percentage of operations per round can result as a misleading criterion of knowledge accumulation. Finally, a theoretical model for ambidexterity for venture capitalists is developed.

Originality/value

The study shows that IVCs act with greater investment capacity because of their organizational structure and purpose and focus on financial goals; moreover, they are ambidextrous, although their exploration may more frequently entail exploitation than “real” exploration. CVCs tend to invest in sectors related to their core business, coherent with their strategic purpose and more oriented with KM strategies for accumulating intellectual capital.

Reconciling temporal conflicts in innovation ambidexterity: the role of TMT temporal leadership

Purpose

This study aims to extend the temporal perspective on ambidexterity by investigating how and under what conditions top management team (TMT) temporal leadership improves innovation ambidexterity.

Design/methodology/approach

Using a questionnaire survey, data were collected from 165 small- and medium-sized enterprises in China. Ordinary least squares regression models were applied to test the hypotheses.

Findings

The findings show that TMT temporal leadership has a positive effect on innovation ambidexterity and temporal conflict mediates this relationship. Market dynamism and institutional support moderate the indirect effect of TMT temporal leadership on innovation ambidexterity.

Practical implications

Managers wishing to promote exploration and exploitation simultaneously should pay attention to the temporal aspects of their innovation strategy and improve their temporal leadership activities.

Originality/value

This study highlights the temporal conflicts in ambidexterity and clarifies the enabling role of TMT temporal leadership. It contributes new insights to the research on organizational ambidexterity and strategic leadership.

The influence of investors’ opinions of human capital and multitasking on firm performance: a knowledge management perspective

Purpose

The purpose of this study is to examine the disruption-adaptation associated with knowledge management (KM) of entrepreneurial multitasking of top strategy and tactics executive (TSTE) succession in positions responsible for both S and T. This provides insight into KM and firm performance during turbulent periods.

Design/methodology/approach

The study examines investor’s opinions of human capital in the context of managerial succession. The data was based on 900 publicly available appointment announcements between 2006–2014, allowing for the examination of 459 observations of succession in 51 industries.

Findings

The findings indicate that the relationship between KM of entrepreneurial multitasking and firm performance was more positive for high innovation firms than for low innovation firms. As well, the relationship between investors’ opinions of a top executive manager’s human capital and firm performance is more positive for small firms than for large firms and more positive for high innovation firms than for low innovation firms.

Research limitations/implications

The study contributes to the literature by systematically examining the announced appointment of executives in one context where KM of entrepreneurial multitasking is prevalent – across marketing strategy and sales tactics (hereafter, S and T) responsibilities – for multiple firms listed at major US stock exchanges across a wide range of industries, using lagged performance data to discern performance outcomes. It highlights important issues related to organizational structure and human capital for firm performance and KM in dynamic environments. Further research could examine the impact on firm performance of a change in structure – from a joint sales and tactics position to a sales or tactics position and vice versa. By studying the impact of change to and from an intertwined position, future scholars can determine the level of risk stemming from coordination uncertainty changes with time.

Practical implications

Of practical relevance, the study shows that vesting dual responsibility for S and T in one executive during managerial succession may not be as universally valuable or adaptive as previously thought. One practical extension of this research may also be that larger firms that are more likely to have clearly defined silos may find that such vesting of multitasking responsibility not as valuable. High innovation and small firms may gain from new executives’ multitasking responsibility for S and T. Thus, firms should think twice before vesting S and T responsibilities with one incoming executive during the leadership change.

Social implications

Responsibility for both S and T compounds ambiguous accountability, frequently leaving the locus of customer-related problems unclear, and therefore unsolved.

Originality/value

Extant research has overlooked the relationship between the top management team’s (TMT) abilities to multitask firm performance over time across contexts of external and internal change, operationalized as firm innovation and firm size. Nor have studies explored the firm performance implications of external stakeholders’ opinions of such human capital across these contexts. A novel measure of executive-specific human capital – abnormal returns generated the appointment announcement, is introduced. Understanding the capability of a top executive to simultaneously multitask both S and T responsibilities is a critical component of KM; also relevant are investors’ opinions of their human capital, a particular oversight given the challenge of the “great transformational leader” with servant leadership theory (Carayannis et al., 2017; Gregory Stone et al., 2004).

Ambidextrous Relationships and Social Capability as Employee Well-Being: The Secret Sauce for Research and Development and Sustainable Innovation Performance

This study examines the effects that ambidextrous relationships, i.e., oriented relationships within a firm towards the development of exploitation activities and oriented relationships towards the development of exploration activities, have on employee performance in terms of creativity, research and development (R&D), and sustainable innovation performance. We contend that informal relationships affect employee creativity and R&D. However, formal relationships affect employee creativity and sustainable innovation performance. The purpose of this study is to inject new positive relationships into firms by examining ambidextrous relationships and the moderating role of social capability in the relationships–innovation effect. We empirically tested our hypotheses by using multisource data collected from 245 Spanish firms across 14 industries. Our structural equation models suggest that these two types of relationship predict employee creativity, which in turn increases sustainable innovation performance and R&D. The results reveal that the effects between informal relationships and creativity are stronger, as are the effects between formal relationships and sustainable innovation performance. A multigroup structural analysis also reveals that effects between informal and formal relationships, employee creativity, R&D, and sustainable innovation performance are stronger within firms that have employees with high social capability. The efforts and investments made in employee social capital support the development of new ideas, R&D, and innovation success. Support is provided for an ambidextrous Human Resource Management (HRM) approach which is relevant for innovation, and several practical recommendations and implementation guidelines for Small and Medium Enterprises (SMEs) are provided. This study provides a plausible explanation of two important management mechanisms for enhancing creativity—R&D and sustainable innovation performance. Relationships are malleable, and this study suggests that fostering formal and informal relationships might hold the key to sustainable innovation performance and unlocking desirable employee behavior.

Open Innovation as a Value Chain for Small and Medium-Sized Enterprises: Determinants of the Use of Open Innovation

The concept of open innovation is currently one of the key issues regarding the innovative development of micro, small, and medium enterprises (SMEs). It has been the subject of research both in the theoretical and empirical context. At present, there is no unambiguous definition conceptualizing the conceptual scope of open innovation (OI). However, enterprises do not always decide by themselves to be open to the environment. Therefore, determinants are important, as they encourage enterprises to greater openness, which can be treated as a key element of a value chain for SMEs, contributing to their innovative development. Classification of these determinants (also named as factors) is very poor in the literature. Generally, internal and external determinants are identified. Authors decide on the selection of these factors and their division by themselves. The research presented in this article has indicated the existence of several significant regularities. Firstly, larger entities are more likely to use the OI concept. Secondly, market determinants are the most important for the use of OI among SMEs. Thirdly, both internal and external determinants have a huge impact on the application of the OI concept, with external determinants being more significant for smaller rather than larger entities. The conclusions drawn were a consequence of the assumed aim of the article: The assessment of the influence of determinants that affect the use of the OI concept among SMEs in Poland.

The requisite match between internal resources and network ties to cope with knowledge scarcity

Purpose

This paper aims to investigate the internationalization strategies of small and medium enterprises (SMEs), focusing on the interaction between network ties and “soft” internal resources at the foundation of knowledge management (KM). Specifically, it identifies the firms’ internal capabilities that affect KM strategies, and their collective influence on the degree of internationalization; verifies the influence of network ties on the internationalization process itself; and develops a conceptual “preliminary theoretical framework of SME internationalization capabilities and networks.”

Design/methodology/approach

The primary research and analysis are based on a proportional stratified sample of Sicilian wineries; while the conceptual and implicative developments of the paper rest on the combination of the theoretical with the primary findings of the research, and, it has been designed and tested through eight experts’ interviews/reviews.

Findings

Findings underline a strong influence of the internal capabilities of firms on the internationalization process. In addition, an important role in the export process emerges from the acquisition of information and knowledge through the establishment of networks.

Research limitations/implications

The results need to be interpreted within the context for which this study was designed and cannot be applied generally to all businesses. However, results allow cellars’ managers to better understand the relationships among the influencing factors of SMEs internationalization.

Originality/value

The originality of the paper lies not only in its above-stated explicit theoretical objectives and findings but also in its comprehensive conceptual framework that theoretically incorporates the “strategic” with the “internal” and “networking” aspects; purposefully also arming the industry with a practicable tool toward managerial implementation.

An original framework for strategic technology development of small manufacturing enterprises in emerging economies

Purpose

Technology and knowledge have become the buzzwords of the new millennium. Technological changes and demanding customers are creating a more knowledge intensive, turbulent, complex and uncertain environment. Organizations, which are able to continually build faster and cheaper new strategic assets than their competitors, create long-term competitive advantages. Thus, the growth of companies is directly associated with innovativeness and technological development, especially for small organizations that are more vulnerable to dynamic changes in market place. Organizations need a strategic framework that can help them to achieve the goal of technology development and competitiveness. The purpose of this paper is to develop such strategic framework for small organizations for their technology development and, hence, survival in marketplace.

Design/methodology/approach

Options field methodology, options profile methodology, analytic hierarchy process (AHP) and fuzzy set theory are utilized to generate various options and profiles to propose a conceptual framework for technology development.

Findings

The results from the study showed that “mixed approach,” “strategic simulation approach” and the “regulatory environment approach,” in this order, emerged as the top three important options for the strategic technological development of small manufacturing enterprises.

Originality/value

This result can provide an original and more accurate implementation pathway toward technological innovative development in emerging economies. The proposed framework can provide valuable guidelines and recommendations to practicing managers and analysts for policy development to promote innovative and technological developments.

Skills and knowledge management in higher education: how service learning can contribute to social entrepreneurial competence development

Purpose

The purpose of this paper is to elaborate on how service learning approaches are able to foster social entrepreneurship competences. The aim of the paper is to formulate a framework of key competences for social entrepreneurship and to give first insights in how service learning actually has an impact on change in students’ set of competences.

Design/methodology/approach

This paper uses a mixed-methods approach combining qualitative data collectionmethods of learning diaries of the students and semi-structured interviews, including 40 master’s students studying at a German university in interdisciplinary learning settings and five instructors from the same universities. Analysis was carried out by means of qualitative content analysis.

Findings

This paper provides empirical insights about the competences that are being fostered by service learning. From these, a framework for social entrepreneurship competences is being derived.

Research limitations/implications

The set of competences should be further investigated, as it was derived out of a small data set. Therefore, researchers are encouraged to use the set of competences for social entrepreneurship as a basis for future research and on a longer-term perspective, which lead to substantial implications for educational practice.

Practical implications

This paper includes implications for new perspectives on service learning in the light of the development of a relevant framework for social entrepreneurship competence, having significant implications for educational practice in social entrepreneurship education.

Originality/value

With this paper, the authors fulfill the need of a framework of social entrepreneurship competences that serves as a foundation for educational practice and further research in the context of service learning and beyond.