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PurposeThis paper aims to investigate the effects of transformational leadership on individuals and organization’s innovation capability via the mediating role of employees' positive psychological capital (Psy-Cap) namely self-efficacy and optimism.Design/methodology/approachStructural equation modeling (SEM) is used to test proposal hypotheses through the empirical data collected from 330 participants at 90 firms in Vietnam.FindingsThe research findings revealed that self-efficacy and optimism significantly mediate the relationship between transformational leadership and innovation capabilities. In addition, self-efficacy has a greater impact on innovation capabilities compared with the effect of optimism.Practical implicationsThe findings highlight the important role of practicing transformational leadership style to nurture and foster both employees' positive psychology sources and firms' innovation capability.Originality/valueThe paper has significantly advanced and deepened our understanding of how transformational leaders connect with employees to nurture and develop one of the most special aspects of human resource in contemporary working environment called employees' positive Psy-Cap for stimulating firm's innovation capabilities.

Over the last four decades, innovation capability has been studied to examine the innovation phenomenon based on the specific characteristics of organizations and systems under the theory of resources and capabilities. However, \"capability\" has diverse applications, and its correlation with innovation remains unclear. This study aims to clarify the definition of \"innovation capability\" in the context of the manufacturing industry and to comprehend how researchers presently investigate this concept. In order to meet this, an exhaustive search was conducted in the Scopus and Web of Science (WoS) databases, covering the period from 2018 to 2023. The selection of documents for analysis was determined by applying the scientometric method. The authors of this research identified 462 documents, and the bibliometric analysis, conducted using VOS viewer and Bibliometrix tools, revealed four main thematic areas within the research domain: sustainability, business performance, technology transfer, and knowledge management. As a result, this study identified the seminal authors of the concept. It provided a precise definition of \"innovation capability\", highlighting the significant interest that this research topic arouses in current academic literature.

More and more firms are entering foreign markets. However, while research on international entry and expansion has been a particularly important topic in the literature, there has been a dearth of empirical research explaining firms' exit decisions from foreign markets. To address this gap in the literature, this study examines the exit behavior of emerging market MNCs. More specifically, we explore the firms' exit behavior in the context of the headquarters-foreign affiliate relationship. To this end, this study develops a model whereby the impact of performance on the firms' exit decision is moderated by innovation capability and international experience. Using secondary and primary data collected from multiple respondents from Chinese outward foreign direct investment firms, the findings indicate that innovation capability moderates the relationship between performance and exit decision. However, and contrary to expectations, the study suggests that incremental and radical innovation have an opposite contingent effect on the performance-exit relationship. In addition, the moderating effect of innovation capability on the performance-exit relationship was further moderated by international experience. Implications of these findings along with the limitations of the study are discussed.

A permanent challenge for business organizations is to transform, adapt to the environment and innovate, so knowing the factors that influence the ability to innovate is relevant information. In this sense, the objective of this article is to determine and conceptualize the decisive factors that interact in a systemic way in the management of innovation in the manufacturing industry. The research has a qualitative approach, with a descriptive and transversal scope. In the first place, a review of the literature was carried out that allowed delimiting the management of innovation in the company in three main categories. Second, the categories were characterized, and subcategories and properties were identified, taking the manufacturing companies of Pichincha, Ecuador as the subject of study. This characterization was carried out through a qualitative study that takes the Grounded Theory as a reference, using research techniques: questionnaires, interviews, and documentary research. The results reveal that the relevant factors for the management of innovation in the company can be grouped into three main categories: knowledge management (KM), innovation capabilities (IC) and financial performance (FP). The subcategories that explain KM are policies and strategies, organizational structure, technology, people, incentive systems, organizational culture, and communication. The subcategories that explain IC are research and development capacity, management capacity, resource availability, human talent management, staff skills and technological capacity. The subcategories that explain the FP are sales and costs. This research contributes to the field of innovation management with new information and theory for action and emphasizes the systemic vision of innovation management and the key factors for the development of innovations in the Ecuadorian industrial sector, with the purpose of strengthening the theoretical and empirical advances of innovation management in the company.

PurposeThe purpose of the study was to analyse the impact of innovation ambidexterity represented by explorative and exploitative innovation capabilities and their combined effects on product innovation performance and to prove the mediating effect of decentralization.Design/methodology/approachThe study uses partial least squares for structural equation models and SmartPLS version 3.3.1 on a sample of 174 Romanian medium- and large-sized firms from the IT industry to test six research hypotheses. To measure innovation ambidexterity, the orthogonal approach was used, conceptualizing innovation ambidexterity as a multidimensional, second-order construct composed of explorative and exploitative innovation capabilities. Innovation ambidexterity was conceptualized as a multiplicative term of both explorative and exploitative innovation capabilities.FindingsThe empirical results prove that innovation ambidexterity is positively correlated with product innovation performance, while decentralization is mediating the impact of innovation ambidexterity on product innovation performance in the IT industry.Research limitations/implicationsThe data was based on self-reported assessments of senior executives. While innovation ambidexterity may influence product innovation performance in the long term, such long-term effects are not assessed. Other studies found a moderating effect between centralization or decentralization and ambidexterity, while we found that it has a mediating effect.Practical implicationsIn the context of innovation capability, the combination of explorative or exploitative capabilities may lead to a better synergy. Innovation ambidexterity influences product innovation performance through a synergistic effect, making the simultaneous combination of capabilities useful for firms willing to make efficient use of existing resources and make their capabilities mutually supportive. Moreover, for senior executives, the effects of decentralization as a mediator provide further incentive to include it in their development of firms' innovation capabilities.Originality/valueThis study extends findings of other studies by contributing to a deeper examination of the effects of decentralization, on innovation outcomes by focusing on a specific type of innovation, product innovation. Moreover, since innovation capability is often studied in small firms or in the manufacturing industry, this study contributes to the research on innovation capability and the consequences on innovation capability in the services sector and medium- and large-sized companies. By proving that decentralization mediates the effects of innovation ambidexterity on product innovation performance, it enables reconsideration of the organizational structure role in fostering innovation.

This study examines the relationship between the knowledge creation process and technological innovation capabilities, and analyzes their effect on a firm’s sustainable competitive advantage using a knowledge-based view theoretical framework. We conduct structural equation modeling analyses using survey data from 315 Chinese industrial firms to test the direct and indirect effects of the knowledge creation process on sustainable competitive advantage. Technological innovation capabilities—operationalized to reflect the dimensions of process innovation capability and product innovation capability—are used as the mediating variable for explaining the relationship between the knowledge creation process and sustainable competitive advantage. The results indicate that the knowledge creation process does not have a significant direct effect on sustainable competitive advantage. Rather, the knowledge creation process can only influence the sustainable competitive advantage through the mediating effect of technological innovation capabilities completely. Consequently, the knowledge creation process favors the development of technological innovation capabilities for processes and products, because processes and products can lead to a sustainable competitive advantage.

Due to strong competition, numerous technology advancements and the monetary policy of the government, the survival of Indian real estate firms now depends on their capacity to measure their existing innovation capabilities, rebuild them and adopt new ones. The aim of this study is to evaluate the technology and human resources innovation capabilities of Indian real estate firms by applying fuzzy Delphi and DEMATEL techniques. After identifying the innovation capabilities through an extensive literature review, a questionnaire is designed based on fuzzy linguistic scales to manage any vagueness of information received. Data has been collected from experts in the field, with capabilities then finalized by using a fuzzy Delphi method. To establish cause-effect relationships among capabilities, a DEMATEL method is applied to the data collected from a second questionnaire. Analysis of the data divides capabilities into two groups i.e. cause and effect. The results show that innovation management, robustness of product and process design capability, strategic planning and knowledge resources fall in the cause group; these are critical findings given the effect on the other capabilities. The study outcomes can help real estate firms to enhance their capabilities with the proposed model providing guidelines and direction in this regard.

Purpose The purpose of this paper is to probe and explore the mediation role of knowledge management (KM), in the relationship between human resource (HR) practices and organizational innovation capability. Design/methodology/approach The investigation is carried out by using a stratified-multi-stage sampling technique of 120-sample size. The data is amassed by both male and female employees working in the service sectors. A structural equation modelling is applied, and three methods are implemented for mediation analysis. Findings The findings suggest that the mediation role of KM is statistically significant, among the association of HR practices and organizational innovation capability. The fact that the mediation role of KM is established both for male and female employees is also noteworthy. Practical implications It can be possible to enhance the organizational innovation capability, if the HR practices are instigated by the HR managers effectively. Through HR practices the knowledge can be administrated and shared effectively that will aid in attaining organizational innovation, as well as competitive advantages. Originality/value The developing countries have opted for solutions such as empowering employees in decision-making to maximize innovation. Promoting KM and intellectual capabilities are now among the core parts of the HR policies for developing countries. Therefore, this paper will help in bringing awareness amid developing countries, Pakistan, in particular, to include KM and intellectual capabilities for increasing organizational capabilities.

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.

This paper aims at investigating the relationship between knowledge sharing activities and innovation capability at both individual and organizational levels. By reviewing extensive literature, a conceptual framework is built with integrating three factors: knowledge sharing, individual innovation capability and firm innovation capability. This study applies structural equation modeling (SEM) to analyze the data collected from 392 employees working at major Vietnam’s telecommunication companies. Empirical results show that knowledge sharing including knowledge donating, knowledge collecting play an important role in improving individual innovation capability. There is no direct link between knowledge collecting and organizational innovation capability, while knowledge donating has direct positive impact on product and managerial innovation. Furthermore, the individual innovation capability acts as a mediating variable between knowledge sharing practices and firm innovation capability. Implications for academics and practitioners are provided in this study.