Innovation Paths in Knowledge Intensive Industries based on Fuzzy Set Qualitative Comparative Analysis

Knowledge-intensive industries has become a major source of competitive advantage and innovation. However, there is no general agreement about the innovation pathways of knowledge-intensive enterprises. A possible explanation for this might be that the complex pathways has thus far been studied using regression models that capture only the main regression effects. To address this issue, we use fuzzy set qualitative comparative analysis that examines relationships (even asymmetrical) between the enterprises’ innovation activity and all possible configurations of its determinants, including obstacles, knowledge sources, collaborative activities and R&D. We investigate this framework in the case study of German knowledge-intensive enterprises. The results show that several pathways act as sufficient conditions for product innovation. However, the effects of these conditions are asymmetric. In addition, the following complementary relationships between the determinants were observed: (1) public support and education knowledge source; (2) internal and external R&D and collaboration on innovation; and (3) internal and market knowledge source and publicly available knowledge acquired from other sources such as conferences, journals and professional associations. Thus, these findings may provide an explanation of the inconsistent effects observed in previous studies on product innovation

Sustainable and traditional product innovation without scale and experience, but only for KIBS!

This study analyzes the ideal strategic trajectory for sustainable and traditional product innovation. Using a sample of 74 Costa Rican high-performance businesses for 2016, we employ fuzzy set analysis (qualitative comparative analysis) to evaluate how the development of sustainable and traditional product innovation strategies is conditioned by the business’ learning capabilities and entrepreneurial orientation in knowledge-intensive (KIBS) and non-knowledge-intensive businesses. The results indicate two ideal strategic configurations of product innovation. The first strategic configuration to reach maximum product innovation requires the presence of KIBS firms that have both an entrepreneurial and learning orientation, while the second configuration is specific to non-KIBS firms with greater firm size and age along with entrepreneurial and learning orientation. KIBS firms are found to leverage the knowledge-based and customer orientations that characterize their business model in order to compensate for the shortage of important organizational characteristics—which we link to liabilities or smallness and newness—required to achieve optimal sustainable and traditional product innovation.Peer ReviewedPostprint (published version

Make-or-buy configurational approaches in product-service ecosystems and performance

This research examines firm boundary configurations for manufacturers' product-service offerings. We argue that the building of a product-service ecosystem through collaboration with service providers in certain types of business services can increase performance as a result of the superior knowledge-based resources coming from specialized partners. By using fuzzy set qualitative analysis on a sample of 370 multinational manufacturing enterprises (MMNEs), the results reveal that effective servitization is heterogeneous across manufacturing industries and across business service offerings. The findings indicate that most industries achieve their highest performance through collaborations with value-added service providers in two out of three of the service continuum stages (Base and Intermediate services); while keeping the development of Advanced services in-house. The results help to contextualize the best practices for implementing service business models in MMNEs by detailing which service capabilities should be retained in-house and which should be outsourced to specialized partners in various industrial contexts.Peer ReviewedPreprin

Sustainable And Traditional Product Innovation Without Scale And Experience, But Only For KIBS!

This study analyzes the ideal strategic trajectory for sustainable and traditional product innovation. Using a sample of 74 Costa Rican high-performance businesses for 2016, we employ fuzzy set analysis (qualitative comparative analysis) to evaluate how the development of sustainable and traditional product innovation strategies is conditioned by the business' learning capabilities and entrepreneurial orientation in knowledge-intensive (KIBS) and non-knowledge-intensive businesses. The results indicate two ideal strategic configurations of product innovation. The first strategic configuration to reach maximum product innovation requires the presence of KIBS firms that have both an entrepreneurial and learning orientation, while the second configuration is specific to non-KIBS firms with greater firm size and age along with entrepreneurial and learning orientation. KIBS firms are found to leverage the knowledge-based and customer orientations that characterize their business model in order to compensate for the shortage of important organizational characteristics-which we link to liabilities or smallness and newness-required to achieve optimal sustainable and traditional product innovation

Exploring Innovation as a Determinant to Internationalization in Small Knowledge-Intensive Business Services

This study tests the underlying assumption that innovation is a necessary condition for internationalization in small firms. Specifically, I ask whether a knowledge-intensive business service (KIBS) firm’s service innovation influences its propensity and intensity of internationalization. Two sub- questions are posed in relation to this broader question. First, are certain innovation results or combinations thereof associated with internationalization? And second, are certain configurations of innovation inputs and results associated with internationalization? I use both traditional statistical techniques as well as set-theoretic methods to assess how the results garnered from contrasting methodological approaches differ from one another. The results from the logistic regressions and fractional logistic regressions echo the findings from previous studies: they suggest that there is a positive relationship between service innovation and internationalization. Given the assumptions of linearity and symmetry, results from the traditional statistical analyses support the notion that service innovation is positively related to internationalization; that internationalization is unlikely without service innovation. The results from the QCA lend an alternate view to the one proposed by the traditional statistical analyses, suggesting that there can be internationalization without service innovation. The crisp and fuzzy set QCAs suggest there are multiple pathways of innovation attributes a firm may adopt, but very few paths lead to the consistent result of internationalization. While there are few consistent configurations that explain internationalization propensity or intensity, there are many more that explain remaining in the firm’s domestic market. Overall, the findings from the study point to the strength of using alternative methodological perspectives to test theoretical models and nuance the current understanding of the role played by innovation as a driver of internationalization. They also point to the importance of allowing for asymmetry in explaining the presence and the absence of internationalization. Improper generalizations may be made when inferring that the absence of innovation implies the absence of internationalization. Moreover, they suggest that the import of a broader definition of innovation, including activities that precede an innovation result as well as external knowledge sourcing, offers insightful additions in understanding the behaviours adopted by firms that have internationalized

Beyond categorization: new directions for theory development about entrepreneurial internationalization

Categorizations emphasizing the earliness of internationalization have long been a cornerstone of international entrepreneurship research. Here we contend that the prominence of categories has not been commensurate with theory development associated with them. We draw on categorization theory to explain why earliness-based categories are persistent, and argue that a greater focus on notions related to opportunity can open new avenues of research about the entrepreneurial internationalization of business. We propose and discuss three directions for opportunity-based research on entrepreneurial internationalization, involving context, dynamics and variety

Identifying the configurational paths to innovation in SMEs:a fuzzy-set qualitative comparative analysis

Using fuzzy-set qualitative comparative analysis (fsQCA), this study investigates the conditions leading to a higher level of innovation. More specifically, the study explores the impact of inter-organisational knowledge transfer networks and organisations' internal capabilities on different types of innovation in Small to Medium size Enterprises (SMEs) in the high-tech sector. A survey instrument was used to collect data from a sample of UK SMEs. The findings show that although individual factors are important, there is no need for a company to perform well in all the areas. The fsQCA, which enables the examination of the impacts of different combinations of factors, reveals that there are a number of paths to achieve better incremental and radical innovation performance. Companies need to choose the one that is closest to their abilities and fits best with their resources

Agency and economic change in regions: identifying routes to new path development using qualitative comparative analysis

This paper investigates the role of human agency in 40 phases of regional economic development in 12 Nordic regions over 30 years. It contributes with a theoretical framework to study agency over time and a fuzzy-set qualitative comparative analysis based on a unique dataset combining over 200 interviews, with printed and online sources, and quantitative data. The paper identifies which combinations of agency types and context conditions make industrial upgrading or diversification possible, and investigates how such combinations come into being. The causal claims from this analysis are illustrated with empirical examples and discussed in relation to previous literature.Agency and economic change in regions: identifying routes to new path development using qualitative comparative analysispublishedVersio

Optimal path selection of innovation resource allocation in China’s regions with shared inputs

As an effective form of interaction between innovation subjects and resources, the regional innovation network’s optimal allocation of resources is the key to improving national innovation capacity. According to the innovation value chain, the process of resource allocation in innovation can be divided into two correlative sub-systems: the knowledge innovation stage (KIS) and the achievements commercialisation stage (ACS). To evaluate regional innovation efficiency, a two-stage network data envelopment analysis model with shared inputs is used, with fuzzy set qualitative comparative analysis to analyse the improvement path of resource allocation efficiency from the dimensions of regional environment and network structure. The results show that efficiency in the KIS is higher than in the ACS, and the efficiency scores for most regions in China are better under the model with shared inputs. The efficiency of innovative resource allocation is affected by the cross-action of seven factors: regional economic development, infrastructure, policy system, social culture, network scale, network openness, and network centrality. To achieve highefficiency resource allocation, regions should build an innovation network that matches their environmental characteristics. These findings provide theoretical guidance for formulating innovative resource allocation policies suitable for different regions

TRANSFORMING HUMAN RESOURCE MANAGEMENT INTO A STRATEGIC PARTNER

This thesis, in particular, includes three distinct qualitative and quantitative studies that examined different forms of HRM such as high-performance work practices and HR systems on various outcomes across levels within organizations. For example, corporate entrepreneurship and employee retention at the organizational level and employee creativity at the individual level. These studies were carried out using diverse research methods that encompass systematic literature review (1st study), fuzzy-set Qualitative Comparative Analysis (2nd study), and mixed method (3rd study) (e.g., questionnaire survey and multiple-case studies). All of these methods yielded valuable theoretical insights that advance our understanding of the topics covered. Further, practical implications were offered to help managers and practitioners to achieve success and competitive advantage. The first research paper analyzes empirical studies that explicitly examined the role of human resources management in fostering corporate entrepreneurship to determine the most effective HRM practices that enhance firms\u2019 entrepreneurship with an emphasis on the underlying mediating mechanisms and boundary conditions that moderate this relationship. A total number of 27 empirical research papers were identified in English peer-reviewed. Review analysis unfolded four high-performance work practices; selective staffing, extensive training, intensive compensation and rewards, and employee empowerment and participation. These practices were widely reported to have the strongest effects on encouraging corporate entrepreneurship. Furthermore, based on the extant empirical evidence, we suggested a theoretical moderated mediation model that explains the relationships between HRM, corporate entrepreneurship, organizational learning capability, and represents the entrepreneurial culture as a boundary condition. Theoretical contributions and implications along with future research paths are discussed. While the second study adopts a configurational perspective and applies fuzzy-set Qualitative Comparative Analysis on a dataset of 232 Austrian and Hungarian manufacturing firms to explore how high-performance work practices combine to enhance employee retention. Results uncover five equifinal configurations of different high-performing skill, motivation, and opportunity-enhancing practices that could help companies and managers to retain employees effectively. The resultant configurations have been interpreted in terms of how each configuration fits different companies\u2019 HR strategies and policies. Our study raises advanced theoretical insights about the synergetic effects of HPWPs on employee retention through the configurational approach and fsQCA. Whereas the third study developed a multilevel model to examine the cross-level effects of interactions between HR systems and relational climates in predicting contexts for employee creativity. Using a mixed-method design and drawing on data obtained from survey questionnaires 282 employees nested in 69 teams and two exploratory case studies, our findings suggest noteworthy insights that the interactions effect between commitment-HR and communal-sharing climate are non-significant for employee creativity. Likewise, the interaction between compliance-HR and market-pricing climate. However, only a commitment-based HR system has been shown to be important to boost employee creativity. Nonetheless, based on the case studies findings, it is not sufficient by itself, instead, the relational climate that permeates the workplace is also vital for creative ideas generation.ENGLIS