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Innovation capability and product innovation performance: the case of low-tech manufacturing firms

Innovation capability and product innovation performance: the case of low-tech manufacturing firms PurposeDespite the growing interest in innovation within low-tech herbal manufacturing from strategic and policy standpoints, little empirical research exists on their innovation capability. The purpose of this study is to explore innovation capability and its effect on product innovation performance of small low-tech herbal manufacturing companies.Design/methodology/approachInnovation capability has been important to large companies in general, and to some small companies in particular, to address the issues of survival and profitability. A case study method is adopted to explore the process of innovation capability of low-tech manufacturing companies.FindingsAnalysis of the two case studies reveals that collaborating with institutional agents, customers, suppliers and competitors in interactive learning, coupled with idea management and idea implementation, are factors that have influenced innovation capability. Also, cognitive ability and social interaction were identified to be crucial for innovation capability.Research limitations/implicationsThis study analysed two homogenous companies from the same geographical area. It could be fruitful to extend the scope to include companies in other geographical areas and different industries, where the theoretical arguments advanced in this study can be tested further.Originality/valueAlthough the volume of research into innovation capability is growing, few attempts have been made to explore innovation capability and its effect on product innovation performance within small low-tech herbal manufacturing companies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Business Review Emerald Publishing

Innovation capability and product innovation performance: the case of low-tech manufacturing firms

Iddris, Faisal
European Business Review , Volume 31 (5): 23 – Aug 2, 2019
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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0955-534X
DOI
10.1108/EBR-12-2016-0159
Publisher site
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Abstract

PurposeDespite the growing interest in innovation within low-tech herbal manufacturing from strategic and policy standpoints, little empirical research exists on their innovation capability. The purpose of this study is to explore innovation capability and its effect on product innovation performance of small low-tech herbal manufacturing companies.Design/methodology/approachInnovation capability has been important to large companies in general, and to some small companies in particular, to address the issues of survival and profitability. A case study method is adopted to explore the process of innovation capability of low-tech manufacturing companies.FindingsAnalysis of the two case studies reveals that collaborating with institutional agents, customers, suppliers and competitors in interactive learning, coupled with idea management and idea implementation, are factors that have influenced innovation capability. Also, cognitive ability and social interaction were identified to be crucial for innovation capability.Research limitations/implicationsThis study analysed two homogenous companies from the same geographical area. It could be fruitful to extend the scope to include companies in other geographical areas and different industries, where the theoretical arguments advanced in this study can be tested further.Originality/valueAlthough the volume of research into innovation capability is growing, few attempts have been made to explore innovation capability and its effect on product innovation performance within small low-tech herbal manufacturing companies.

Journal

European Business Review – Emerald Publishing

Published: Aug 2, 2019

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