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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.

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.

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.

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.

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.

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.

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.

This research examines the ability of Chinese enterprise groups to leapfrog the upgrading of low-carbon technologies. A theoretical model based on backwardness advantage, innovation theory, and technological leapfrogging theory is proposed to investigate the determinants of late-mover advantage and innovation capability in Chinese provinces. The study conducted interviews with 198 selected group managers from China’s top 500 manufacturing enterprises and collected data from 248 related departments through questionnaires. The collected data was analyzed using the partial least square-structural equation model (PLS-SEM) to test the reliability and validity of the questionnaire and verify theoretical assumptions. Results show that late-mover advantage positively and significantly affects innovation capability, indicating that Chinese enterprise groups can utilize their late-mover advantage to innovate quickly and upgrade low-carbon technology. These findings have crucial implications for China’s medium-term sustainable development trajectory.

This study examined the effect of high-performance work systems on developing incremental and radical innovation capabilities. Drawing on resource-based and knowledge-based theories, the mediating effects of human capital, social capital, and organizational capital were tested. Data were collected from 233 middle-to-senior level managers working in the banking sector of Pakistan, and hypotheses were tested through partial least squares structural equation modeling using Smart PLS 4.0. The findings showed that all components of intellectual capital mediated the relationship to develop both types of innovation capabilities. In terms of the strength of the relationship, social capital was found to be a more effective mediator, and next to this were human capital and organizational capital, respectively. Our findings contribute to the existing literature by explaining the relationship between HPWS and innovation capabilities, which is also referred to as the black box through the mediation of intellectual capital. Decision makers should recognize the importance of this relationship because it develops innovation capabilities that enhance organizational performance by giving them a competitive advantage.

Introduction/Main Objectives: This research examines the antecedents and implications of innovation capability, empirically. The outcomes aim at contributing to the knowledge and understanding about the main driver of innovation capability.  Background Problems: Yogyakarta is known for its many and varied charms, its tourist attractions, the availability of facilities and infrastructure to support tourism, such as souvenir sellers. But there is known that number of total foreign and domestic tourists has been a decrease in 2018 (Semester I by 11.51% and II by 3.33%), also in 2019 (Semester I by 11.23%). This is a challenge for MSMEs in the tourism sector and MSMEs in other sectors that support tourism, such a souvenir seller. Bakpia is one of the well-known products of the food and beverage sector in Yogyakarta often bought for souvenirs. The Bakpia MSMEs’ innovations were triggered by competition among the Bakpia producers in Yogyakarta. Therefore, every Bakpia MSME must be competitive to survive in the market. Thus, there is a need to improve their innovation capability, which will impact the innovation performance of the Bakpia MSMEs in Yogyakarta. There is a gap in the research regarding the influence of the factors that are predicted to build innovation capability. Novelty: Previous studies’ results indicate that the influence of knowledge donating and knowledge collecting about innovation performance is not yet conclusive. Therefore, this study aims to fill the gap in the previous research by examining the role of capability as a mediating between knowledge sharing process (knowledge donating and knowledge collecting) to innovation performance. Research Methods: Forty-eight items of data were obtained from Bakpia MSMEs in Yogyakarta through a survey conducted by distributing questionnaires directly to them. The data were analyzed using PLS-SEM via SmartPLS version 3.3.2. Findings/Results: This study shows that the direct and indirect effects of sharing knowledge (which includes donating and collecting knowledge) about innovation performance are found to be positive but not significant. The results also indicate that innovation capability does not significantly mediate knowledge donating and knowledge collecting about innovation performance. Meanwhile, the influence of innovation capability on innovation performance was found to be positive and significant. Conclusion: The antecedents are insignificant for innovation capability, but the antecedent’s constructs still act as a driver to build innovation capability.