• Title/Summary/Keyword: Product Process Innovation

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A Dynamic Analysis of Technological Innovation Using System Dynamics (시스템 다이나믹스를 이용한 기술혁신의 동태성 분석)

  • Choi Kang-Hwa;Kwak Soo-Il;Kim Soo-Wook
    • Korean Management Science Review
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    • v.23 no.1
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    • pp.87-113
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    • 2006
  • This paper describes a comprehensive approach to examine how technological innovation contributes to the renewal of the firm's competences through its dynamic and reciprocal relationship with R&D and product commercialization. Three theories of technology and innovation (R&D and technological knowledge concept, product-process concept, technological interdependence concept) are used to relate technology and innovation to strategic management. Based on those theories, this paper attempts to identify dynamic relationship between product innovation and process innovation by system dynamics, by investigating the aspect of the dynamic changes of the closed feedback circulation structure in which R&D investments drive technological knowledge accumulation, and such knowledge accumulation actualizes product innovation and process innovation, subsequently resulting in the increase of productivity, customer satisfaction, profit generation, and re-investment on R&D from the created profits. This provides the ability to assess the advantages and disadvantages of different technological innovation strategies and commitments, and the opportunity to explore equilibrium point and suggest a generalized technological innovation model under different industry environment parameters and time-strategies.

Does in-bound FDI Increase Firm Innovation? An Organizational Learning Perspective (외국인 직접투자(In-bound FDI)가 국내 기업 혁신에 미치는 영향: 조직 학습 관점의 매개효과를 기반으로)

  • Kim, Juhee;Nam, Dae-il;Jeong, Jihye
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.11 no.4
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    • pp.79-89
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    • 2016
  • FDI has been considered as a source of competitive advantage by bringing scientific and technological innovation capabilities to domestic firms via organizational learning. Acquiring knowledge and technology by learning accelerates firms to be innovative. In the way of innovation, firms seek for innovation as a whole but innovation can be clarified as two different parts, product and process innovation. Different from product and process innovation, organizational innovation is not directly related to productivity or outcome but it is closely related to product and process innovations. As a kind of firm innovation, organizational innovation may be considered as preceding product and process innovation and it may positively mediate the relationship between in-bound FDI and firms' product and process innovations. In this paper, the relationship between FDI and product and process innovation will be explained by organizational learning and the way of organizational innovation affects to the relationship will be examined.

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The Effect of Individual's on Absorptive Capacity on Process and Product Innovation (개인의 흡수 역량이 프로세스 및 제품 혁신에 미치는 영향에 대한 연구)

  • Jang, Jae-Seung;Lee, Junyeong;Kwak, Chanhee;Lee, Heeseok
    • Knowledge Management Research
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    • v.17 no.1
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    • pp.135-154
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    • 2016
  • Absorptive capacity has been increasingly thought of as a potential source of innovation. From the knowledge management perspective, absorptive capacity is composed of a set of activities dealing with acquisition, assimilation, transformation, and exploitation of external and internal knowledge. This study investigates what relationship the absorptive capacity of individuals who have technical knowledge in the organization has with process innovation and product innovation. Mobile based survey was conducted from the employees working for the largest electronics manufacturer in Korea. The analyzed data was based on 156 responses from 199 participants. The analysis result shows that four phases of absorptive capacity such as acquisition, assimilation, transformation and exploitation have different effects on process innovation and product innovation, respectively. Specifically, transformation is found to be most critical in leading to innovation.

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Impact of Internal Marketing Factors on Technological Innovation and Perceived Service Quality in Telecommunications (내부마케팅 요인이 조직의 기술혁신과 지각된 서비스 품질에 미치는 영향)

  • Jung, Gap-Jin;Hwang, Hee-Joong;Song, In-Am
    • Journal of Distribution Science
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    • v.13 no.6
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    • pp.87-96
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    • 2015
  • Purpose - Several domestic telecommunication companies have made a considerable effort to continuously grow and survive, and they have strived to thrive in the midst of mature market competition. To overcome this challenging situation and to grow continuously, while still meeting customer needs that are becoming more diverse and complicated with the passage of time, extensive support for internal marketing is essential. Without such internal support, companies face serious limitations and market roadblocks. The communication industry is a high-level service industry and a basic communications industry characteristic is its significant dependence on the employees delivering the services. Therefore, entrepreneurs in the information/communications industry, as well as existing competitors, should look to satisfy external customers through critical investment in internal customers (employees). Therefore, it is important for research to examine how internal factors influence technology innovation and service quality, which are the key drivers for companies that are seeking leading market positions. Research design, data, and methodology - The purpose of this study is to analyze the relationship of technology innovation and perceived service quality with the internal marketing factors in the communication industry and to offer suitable and effective internal marketing suggestions. The independent variables of this study are internal communication, education and training, the support of the executives, reward systems, and empowerment. The dependent variables are technology innovation and perceived service quality. Utilizing these, this paper studies the influence of internal marketing factors on technology innovation and perceived service quality. Results - The study results revealed the following. First, the identified internal marketing factors have a positive effect on technology innovation. Among the five internal marketing factors, three had a significant effect on product innovation, empowerment, the support of executives, and education and training, in this order. Second, the internal marketing factors also had a positive effect on the process innovation of technology innovation. The marketing factors, the support of executives, empowerment, internal communication, and education and training, in this order, significantly affect process innovation. Third, technology innovation had a positive effect on perceived service quality. All of the five service quality factors, namely, tangibles, reliability, assurance, responsibility, and empathy, in this order, significantly affect product innovation. Additionally, tangibles, reliability, responsibility, empathy, and assurance, in this order, significantly affect process innovation. Fourth, product and process innovation significantly affect tangibles and reliability in technology innovation. To enhance tangibles and reliability, process innovation should first be enhanced. Fifth, product and process innovation significantly affect responsibility and empathy in technology innovation. To enhance the responsibility and empathy, process innovation should first be enhanced. Sixth, product and process innovation significantly affect assurance in technology innovation. To enhance the assurance, product innovation should first be enhanced. Conclusions - According to the results, a company's internal marketing factors have a positive and significant effect on technology innovation and, further, product and process innovation have a positive and significant effect on the perceived serviced quality.

A study on the Structural Relationship among Innovation Activity, Innovation Performance, and Business Performance of Export Firms (수출기업의 혁신활동, 혁신성과, 경영성과 간의 구조적 관계에 관한 연구)

  • Yong-Hyun Cho
    • Korea Trade Review
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    • v.46 no.5
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    • pp.195-211
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    • 2021
  • The purpose of this study is to examine the relationship among innovation activities, innovation performance, and management performance of export firms. I first undertake a review of previous studies related to innovation activity, innovation performance, and export firms' innovation. Based on this, I set up a research model and hypotheses. First, The innovation activity is classified into product innovation activity, process innovation activity, and administrative innovation activity. Innovation performance is divided into product quality improvement and cost reduction. And the business performance is regarded as financial performance of export's firms. This study examined whether innovation activity affect innovation performance such as product quality improvement and cost reduction. In addition, I examined whether these innovation performance affects business performance (financial performance). To achieve this, a total of 368 questionnaires are used in this study and PLS (Partial Least Square) was used to analyze structural equation. As a result, this study shows that product innovation activity have a positive effect on product quality improvement, and process innovation activity also have a positive effect on product quality improvement. However, it was found that neither product innovation activity nor process innovation activity had an effect on cost reduction. And it was found that administrative innovation did not affect product quality improvement, but had a positive effect on cost reduction. Also, it was found that quality improvement, which is an innovation performance, did not affect the financial performance of export's firms, and cost reduction, which is an innovation performance, had a positive effect on the financial performance of the export's firms.

The relationship between innovation and corporate performance: which of administrative or technical innovation is more useful for performance (중소기업의 혁신활동이 기업 성과에 미치는 효과: 관리혁신과 기술혁신의 공헌도 비교)

  • Ahn, Kwan-Young
    • Journal of the Korea Safety Management & Science
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    • v.15 no.2
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    • pp.263-271
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    • 2013
  • This paper reviewed the relationship between innovation(organization innovation, personnel innovation, product innovation, process innovation) and firm performance in small business. Based on the responses from 218 firms, the results of multiple regression analysis showed that personnel innovation, product innovation, and process innovation effect positively on all firm performance(sales, profit, market share, customer satisfaction), and organization innovation effects positively only on market share and customer satisfaction. The results of hierarchical regression analysis showed that technical innovation(product innovation, process innovation) effects more positively on sales, profit and customer satisfaction than administrative innovation(organization innovation, personnel innovation).

How does Product Innovation Enhance Firm Performance?: The Moderating Role of Process Innovation, Organizational Innovation and Marketing Innovation (기업의 재무적 성과 향상을 위한 제품혁신 메커니즘 분석: 공정혁신, 조직혁신, 마케팅혁신의 조절효과를 중심으로)

  • Oh, Shin-Ho;Han, Sang-Yun;Bae, Sung Joo
    • Journal of Korea Technology Innovation Society
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    • v.16 no.4
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    • pp.1006-1031
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    • 2013
  • This study investigates the extent to which product innovation is associated with firm performance, and how this effect is moderated by other type of innovation efforts. Empirical analysis is conducted (1) to determine the effect of product innovation on firm performance; (2) to explore the moderating effect that process innovation, organizational innovation and marketing innovation activities each has on the relationship between product innovation and firm performance. The analytical sample comprises a total of 816 Korean manufacturing firms from the 2010 KIS (Korean Innovation Survey) data and merged with financial data from KIS Info for acquiring the objectivity. The results show that product innovation is positively associated with a firm performance. Product innovation when combined with higher levels of process, organizational and marketing innovation activities resulted in higher firm performance. The results suggest that product innovation is a decisive factor of firm performance. More importantly, process, organizational and marketing innovation activities support product innovation and thus impact firm performance indirectly. In addition, this study examines the effect of innovation activities on firm performance by different firm size and R&D intensity, thereby further improving the details of this study.

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The relationship between social capital and innovation in small business of Convergence Federation (이업종융합회 참여 중소기업의 사회적자본과 혁신활동의 관계에 대한 연구)

  • Ahn, Kwan-Young
    • Journal of the Korea Safety Management & Science
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    • v.15 no.1
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    • pp.317-325
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    • 2013
  • This paper reviewed the relationship between social capital(interaction, trust, shared vision) and innovation(product innovation, process innovation), and the moderating effect of CEO's entrepreneurship in small businesses of Convergence Federation. Based on the responses from 252 responses, the results of multiple regression analysis showed that interaction and shared vision effect positively on product innovation and process innovation, but trust effects positively only on process innovation. The results of moderating analysis showed that entrepreneurship effects positively on the relationship between trust and product innovation, and the relationship between shared vision and process innovation.

Propensity to Innovate and Firm Performance in the Developing Economies: Evidence from ASEAN Countries

  • Duy Tran Luu;Truong Vinh Tran Luu
    • Asian Journal of Innovation and Policy
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    • v.12 no.2
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    • pp.155-176
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    • 2023
  • This paper employs datasets from the Enterprise Survey conducted by the World Bank to examine the relationship between four types of innovation defined by the Oslo Manual (OECD, 2005): product innovation, process innovation, marketing innovation, organization innovation, and the firm performance in the selected developing ASEAN economies. The main objective of this paper is to understand the characteristics of innovation activities at the firm level and how various innovation types affect firm performance. The empirical results from ASEAN manufacturing firms reveal that product innovation positively affects firms' performance, while non-technological innovations are negatively related to the performance of firms. The further employed quantile regression provides more insights into the roles of innovation types on different levels of firm performance: while product and process innovations actively contribute to the small and medium-size firms (below 25th quantile and median), organizational and marketing innovations negatively affect them. Interestingly, the role of process innovation decreases when firm performance grows.

From R&D to Commercialization : A System Dynamic Approach

  • Choi, Kang-Hwa;Kim, Soo-W.
    • International Journal of Quality Innovation
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    • v.9 no.3
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    • pp.123-144
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    • 2008
  • This paper describes a comprehensive approach to examine how technological innovation contributes to the renewal of a firm's competences through its dynamic and reciprocal relationship with R&D and product commercialization. Three theories of technology and innovation (the R&D and technological knowledge concept, product-process concept, technological interdependence concept) are used to relate technology and innovation to strategic management. Based on these theories, this paper attempts to identify the dynamic relationship between product innovation and process innovation using system dynamics by investigating that aspect of the dynamic changes in the closed feedback circulation structure in which R&D investments drive the accumulation of technological knowledge. Further, such knowledge accumulation actualizes product innovation and process innovation, subsequently resulting in an increase in productivity, customer satisfaction, profit generation, and.