Institutional pressure and open innovation: the moderating effect of digital knowledge and experience-based knowledge

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hao Jiao ◽  
Jifeng Yang ◽  
Yu Cui

Purpose When considering the influence of external social, technical and political environments on organizations’ open innovation behavior, especially in emerging markets, institutional theory is especially salient. This study aims to answer the question of how to integrate organizations’ external institutional pressures and internal knowledge structure to mitigate the challenges in the open innovation process. Design/methodology/approach This study uses a sample of 2,126 observations from the 2012 World Bank Enterprise Survey. A multivariate regression model is designed to explore the impact of external institutional pressure (i.e. coercive pressure, mimetic pressure and normative pressure) on open innovation, as well as the moderating effect of digital knowledge and experience-based knowledge. Findings The results show that institutional pressure has a positive role in promoting open innovation; digital knowledge weakens the positive relationship between institutional pressure and open innovation; experience-based knowledge strengthens the positive relationship between institutional pressure (especially coercive pressure) and open innovation. Originality/value This study combines institutional theory and knowledge management to enriches insights into open innovation in emerging markets. Beyond recognizing the inherent multidimensionality of the concept of institutional pressure, this study creates an integrated path for the legitimacy acquiring of enterprises through the knowledge structure design (i.e. digital knowledge and experience-based knowledge). It also deepens the institutional pressure to enable the implementation of digital knowledge to manage open innovation processes.

2019 ◽  
Vol 57 (9) ◽  
pp. 2223-2238 ◽  
Author(s):  
Huiping Zhou ◽  
Karen Yuan Wang ◽  
Yanhong Yao ◽  
Kai-Ping Huang

Purpose The purpose of this paper is to examine the relationship between open innovation (OI) and innovative performance, and to explore the moderating effect of knowledge structure, including component knowledge and architectural knowledge, on this particular relationship. Design/methodology/approach The proposed model was tested with regression analysis of data collected through a questionnaire survey of 231 employees of Chinese manufacturing firms. Findings The findings indicate that inbound OI is positively related to innovative performance and that outbound OI has an inverted U-shaped effect on innovative performance. By presenting empirical evidence of the moderating effects of component and architectural knowledge, our analysis of results demonstrates that the strong alignment between knowledge structure and OI results in superior innovative performance. Originality/value This study addresses the controversial issues brought up by previous studies with findings of an inverted U-shaped effect of outbound OI on innovative performance. By exploring the moderating effect of knowledge structure, the authors provide insights into how internal contextual factors in relation to organizational knowledge can affect the efficacy of the inbound and outbound OI on innovative performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xun Zhang ◽  
Biao Xu ◽  
Jun Wu

Purpose This study aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese business-to-business (B2B) context. Design/methodology/approach Renqing in China has played an important role in business relationships and has been receiving increased attention in both practice and theory. However, little is known about whether it can influence purchase intentions in a rational B2B condition. This research aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese B2B context. Based on a survey of 1,010 industry buyers from 468 Chinese downstream buyer companies, the empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of long-term orientation (LTO) for increasing purchase intentions. In addition, this study also finds that product involvement (PI) has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. The results highlight several implications for B2B companies that sell products to Chinese enterprises. Findings The empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of LTO for increasing purchase intentions. In addition, this study also finds that PI has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. Originality/value First of all, by answering the research question, this study shows that renqing has a positive effect on purchase intentions in Chinese B2B context. Second, this study elucidates the influence mechanism of renqing on purchase intention and identifies the mediating effect of LTO and the moderating effect of PI.


2017 ◽  
Vol 23 (6) ◽  
pp. 1144-1166 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella ◽  
Benedetta Soranzo

Purpose The purpose of this paper is to investigate the influence that different components of relational capital (marketing capability, open innovation with business and scientific partners, technological reputation, brand) have on customer performance (CP). Moreover, the moderating effect of absorptive capacity on such relationships is tested. Design/methodology/approach First, the direct relationship between the different components of relational capital and CP is analyzed through a linear regression model. Then, to test the moderating effect, two distinct regression analyses are conducted into two sub-samples, defined according to the level of absorptive capacity. The authors carried out these analyses on a sample of 150 small- and medium-sized enterprises (SMEs) in the medium- and high-tech B2B context. Findings Results of this study prove that CP is enhanced through firm marketing capability, open innovation with business partners and technological reputation, while brand and open innovation with scientific partner do not have an association with CP. In particular, the impact of marketing capability and open innovation with business actors on CP is greater for firms with higher absorptive capacity. Research limitations/implications This paper, highlighting the relevance of relational capital and absorptive capacity in improving CP, enhances our knowledge about the factors that help to strengthen the relationships with customers, which is an under-investigated issue especially for SMEs competing in B2B industries, and extends our knowledge on open innovation practices. Practical implications Findings of this paper suggest that, to achieve better CP, managers should pay special attention to nurturing their marketing capability and high-quality relationships with external actors and invest in absorptive capacity to enhance the positive effect of such linkages. Originality/value This work, combining the external perspective of relational capital and the internal organizational dimension of absorptive capacity, provides valuable insights about the knowledge and resource mix that firms might rely on to achieve better customer satisfaction and loyalty.


2017 ◽  
Vol 55 (4) ◽  
pp. 634-647 ◽  
Author(s):  
Dan Zhang ◽  
Shengxiao Li ◽  
Dengpan Zheng

Purpose The purpose of this paper is to examine how knowledge search (KS) affects open innovation performance (OIP) in consideration of appropriability hazard in an emerging market context. Design/methodology/approach The authors identify two types of appropriability hazard related to KS activities in the improvement of OIP: partner-related and market-related hazards, and construct a model of KS to the OIP with the government-enterprise relationship and market focus (MF) as moderating factors of the analysis framework, using the hierarchical regression analysis based on a survey sample of 258 Chinese companies. Findings The authors find that KS has a stronger positive relationship with OIP in international market-focused enterprises compared with domestic market-focused enterprises. In addition, using a configuration approach, the authors find that KS is more positively related to OIP when enterprises have an international MF and a good relationship with the government, but less in other MF government and enterprises relationship configurations. Originality/value This paper contributes to previous research work by identifying two types of appropriability hazard related to KS activities in emerging market countries: partner-related and market-related hazards. The authors argue that a positive relationship between KS and OIP is more likely to occur if these appropriability hazards can be mitigated by export MF and a good relationship with the government which has not been demonstrated in previous research.


2016 ◽  
Vol 31 (5) ◽  
pp. 684-694 ◽  
Author(s):  
A. Noel Gould ◽  
Annie H. Liu ◽  
Yang Yu

Purpose This study examines the potential of foreign business-to-business (B2B) firms to select high-status local partners in emerging markets to achieve positive relationship outcomes. Because a domestic firm’s high status may also promote opportunism, the study also examines if the foreign B2B firms may mitigate such behavior through either or both transaction-specific investments (TSIs) and socialization. Design/methodology/approach The research is conducted via a model that suggests a positive correlation between high local partner status and the focal relationship outcomes and the moderating effects of structural TSIs and social governance systems. The model was developed and empirically tested using data collected from 96 foreign firms operating in China. Findings Using multiple regressions, the findings suggest that foreign B2B firms are likely to achieve more beneficial relationship outcomes with high-status local partners. Standing alone, foreign B2B firms’ TSIs mitigate the positive relationship outcomes, whereas their socialization with the high-status partners enhances the beneficial outcomes. Most importantly, combining socialization with TSIs increases beneficial outcomes. Research limitations/implications This study adds to B2B marketing, status theory and the application of transaction cost economics (TCE) and social exchange theory to foreign-local B2B exchange relationships in emerging markets. The findings confirm the attractiveness of high status in emerging markets by exploring how the selection, formation and chosen B2B governance processes may lead to competing outcomes of opportunism or success. Future research will benefit from simultaneously securing data from both sides of the dyad. Practical implications The paper suggests that foreign B2B firms consider high status as a key criterion in selecting local partners in emerging markets and the importance of managing high-status partners’ potential opportunism by effective governance mechanisms. Originality/value This study is one of the first to apply and explore the workings of status theory in the foreign-local B2B partner selection process and relationship outcomes in emerging markets and thereby contributes to B2B marketing, status theory and both TCE and social exchange theories in the focal foreign-local B2B context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Min Zhang ◽  
Wen Lin ◽  
Zhen Ma ◽  
Jun Yang ◽  
Yan Zhang

PurposeThis paper aims to theorize and examine how central cognition elaboration cue and peripheral cognition elaboration cue influence users’ health information sharing intention in Strong ties social media (STSM) in emerging markets.Design/methodology/approachThis paper innovatively proposes two concepts of health information emotion and health information sharing value based on the in-depth observation of users’ social health behavior. We integrate Elaboration Likelihood Model, Media Richness Theory, Trust Theory and Regulatory Focus Theory to develop hypotheses and research models and lay emphasis on the study of health information emotion’s moderating effect. This paper conducts an empirical study by selecting 372 health information users of WeChat, a typical STSM, to verify the research model by structural equation model.FindingsFor the central route, individual motivation and health information richness positively influence health information sharing value. For peripheral route, health information source trust and health information recipient trust both positively influence the health information sharing attitude. Health information sharing value and sharing attitude can positively affect users’ health information sharing intention. In addition, health information positive emotion has significant moderating effect, while health information negative emotion does not have.Originality/valueThis study contributes to a comprehensive perspective for understanding users’ health information sharing intention in STSM in emerging markets, an important but understudied topic. The results can also give implications for researchers to explore users’ behavioral intention from the perspective of process-oriented persuasion and health information emotion’s moderating effect.


2015 ◽  
Vol 33 (6) ◽  
pp. 692-716 ◽  
Author(s):  
Omar S. Itani ◽  
Aniefre Eddie Inyang

Purpose – The purpose of this paper is to examine the relations between salespeople’s empathy and listening behaviour and the relationship quality (RQ) customers have with their banks, taking into consideration the moderating effect of felt stress (FS) experienced by salespeople. The paper examines specific effects of FS on factors related to a salesperson’s performance. Design/methodology/approach – To examine the proposed model, responses from 150 customers were collected and matched with responses from 25 salespeople working at a major ba ' nk in Chile. The paper analysed the dyadic data gathered using two analysis techniques. Structural equation modelling was employed to test the relationships proposed at the customer level. Moreover, hierarchical linear modelling was used to test the moderating effect of FS, measured at the salesperson level, on the proposed relationships. Findings – The results show that customers’ perceptions of salespeople’s listening behaviour mediate the relationship between customers’ perception of salespeople’s empathy and RQ with the bank. Moreover, the positive relationship between salespeople’s empathy and salespeople’s listening behaviour, and the positive relationship between salesperson’s listening and customer’s RQ with bank are attenuated by the salesperson’s FS. Originality/value – This paper examined the effects of the salesperson’s empathy and listening behaviour on the quality of customer relationships with the bank. Moreover, dyadic data show that such effects are influenced by variables related to the bank’s salespeople, such as FS. The findings show that under high FS conditions, salespeople with high listening skills will have negative effects on their customers’ RQ with the bank.


2018 ◽  
Vol 22 (7) ◽  
pp. 1591-1613 ◽  
Author(s):  
Shubham Shubham ◽  
Parikshit Charan ◽  
L.S. Murty

Purpose Contemporary frameworks on institutional theory and corporate environmentalism observe that institutional fields positively influence a firm’s environmental response in the form of implementation of environmental practices. These frameworks, however, provide little evidence on why firms facing similar institutional field differ in their environmental response. This paper aims to incorporate the intra-organizational dynamics within the traditional institutional theory framework to address this heterogeneity, examining specifically the role of absorptive capacity for environmental knowledge in the organizational implementation of corporate environmental practices. Design/methodology/approach Integrating the institutional theory and resource-based view, this paper examines the mediating role of absorptive capacity in the relationship between institutional pressure for corporate environmentalism vis-a-vis the implementation of corporate environmental practices. Partial least square structural equation modeling was used for hypotheses testing based on data obtained from the Indian apparel and textile industry. Findings The results support the mediating role of absorptive capacity in the relationship between institutional pressure and implementation of corporate environmental practices. Further, this study highlights the importance of acquisition and utilization of environmental knowledge in driving environmentalism through developing absorptive capacity; the findings also suggest that the role of institutional pressure in the implementation of environmental practices should not be analyzed in isolation but rather in conjunction with the development of absorptive capacity that forms the internal basis of implementation. Practical implications Managers need to focus on the development of organizational capabilities for acquiring and exploiting environmental knowledge to complement their preparedness in responding to any institutional pressures for environmental sustainability. Firms also need to link their environmental orientation with various sources of environmental knowledge and capabilities residing outside the organizational boundaries. It is important to note here that the development of absorptive capacities for the exploration and exploitation of external knowledge is indeed both required and necessary to build sustainable organizational capabilities. Originality/value This paper is among the very few studies that address the issue of knowledge and development of related organizational capabilities for corporate environmentalism. Recognizing that environmental knowledge resides outside organizational boundaries with regulatory agencies and special interest groups, this paper highlights the importance of developing organizational capabilities for the acquisition and exploitation of environmental knowledge.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kofi Mintah Oware ◽  
Thathaiah Mallikarjunappa

Purpose The purpose of this study is to examine the moderating effect of mandatory corporate social responsibility (CSR) reporting on CSR expenditure and financial performance of listed firms in India. It uses institutional theory to explain the relationship. Design/methodology/approach The study used the Indian stock market as the testing grounds and applied descriptive statistics, hierarchical regression and panel regression with fixed effect assumptions for 800 firm-year observations for the period 2010 to 2019. Findings The study shows a positive and statistically significant association between CSR expenditure and financial performance [return on assets (ROA) and Tobin’s q]. Also, the study shows a positive association between financial performance (ROA and Tobin’s q) and CSR expenditure. Furthermore, the study shows that mandatory CSR reporting leads to an increase in CSR expenditure. Finally, the study shows that mandatory CSR reporting moderates the association between CSR expenditure and financial performance stock price returns). The study control for any form of heteroscedasticity, serial correlation and endogeneity effects. Research limitations/implications The study used one country data to represent the emerging economies. The use of one country data can limit the generalisation of the study. Originality/value Different studies have examined mandatory CSR reporting association with CSR disclosure or financial performance. However, this study takes the discussion further and contribute a novelty to sustainability development studies with the examined moderating effect of mandatory CSR reporting in the association between CSR expenditure and financial performance.


2020 ◽  
Vol 58 (12) ◽  
pp. 2655-2680
Author(s):  
Shaojie Han ◽  
Yibo Lyu ◽  
Ruonan Ji ◽  
Yuqing Zhu ◽  
Jingqin Su ◽  
...  

PurposeThis study aims at developing a better understanding of the relationship between network embeddedness and incremental innovation capability and further examines the moderating effect of open innovation.Design/methodology/approachThis paper adopts hierarchical regressions to validate the theoretical model and collect the patent data of the top 54 firm patentees in the smartphone industry as empirical sample. Using patent citation network data, this paper estimates the relationship between open innovation, network embeddedness and incremental innovation capability.FindingsThis paper empirically shows that structural embeddedness exerts a negative effect on incremental innovation capability, while relational embeddedness is positively related to incremental innovation capability. And open innovation strengthens the relationship between network embeddedness and incremental innovation capability.Originality/valueThis paper shifts the focus of the determinants of incremental innovation capability from internal factors to the external network features by exploring the linkage between network embeddedness and incremental innovation capability. A counterintuitive conclusion is that structural embeddedness shows a negative effect on firm's incremental innovation capability. Furthermore, in contrast to most previous studies, which only focus on the direct effect of open innovation on the firm's incremental innovation capability, our study examines the moderating effect of open innovation on the relationships between network embeddedness and incremental innovation capability. At last, the results provide practical guidance for firms to occupy the beneficial network positions and adopt appropriate open innovation strategies to improve their incremental innovation capability.


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