Quality management and administrative innovation as firms' capacity to adapt to their environment

Relationship Between Knowledge Base and Innovation-Driven Growth: Moderated by Organizational Character

Purpose: On the background of innovation-driven growth strategy of the Chinese government, this study aims to explore the impact of the knowledge base on innovation-driven growth of a firm, which is moderated by organizational character. Design/methodology/approach: Based on the data of 965 Chinese listed companies, some hypotheses were tested using the method of hierarchical regression analysis. Findings: Organizational growth relies on both technological and business model innovations and their interactive effect. Knowledge base, both breadth and depth, makes a positive impact on the innovation-driven growth of an enterprise. In the impacting mechanism, an explicit organizational character not only has direct positive effects on business model innovation, it also strengthens the effect of knowledge breadth on business model innovation. On the contrary, an implicit organizational character is not significantly related to innovation. Research limitations/implications: In order to achieve growth, enterprises are suggested to adopt such dual innovation strategy, led by technological innovation and supplemented with business model innovation, which is supported by the integrated management of intangible resources, deep and broad knowledge, and explicit organizational character. Originality/value: A new theoretical framework of organizational innovation-driven growth was proposed. The realization paths of innovation-driven growth were explored. The idea of collaborative governance between the knowledge base and organizational character was raised.

Implications of TQM in firm’s innovation capability

Purpose

Over the last few decades, some researchers have analysed the role of total quality management (TQM) as a precursor of innovation. However, the relationship between TQM and organisational innovation remains unclear and contradictory. The purpose of this paper is to provide a framework intended to clarify the complex effect that the implementation of a TQM system has on organisational innovation, where market orientation (MO) and knowledge management (KM) play a mediator role.

Design/methodology/approach

Data in this study come from a survey of 706 Spanish CEOs. The results were analysed employing structural equation modelling to determine how TQM, MO and KM influence innovation.

Findings

The results of the empirical study show that there is a curvilinear effect between TQM and organisational innovation. Both MO and KM perspectives play a mediator role between TQM and innovation.

Practical implications

Managers should be aware that management based on TQM help organisations not only to get higher quality but also to be market oriented and better manage their knowledge; what will help them to develop innovations.

Originality/value

This research sheds light on the question of the relationship between TQM and organisational innovation that has received mixed conclusions in the literature. There is evidence in this research that the relationship between TQM and innovation responds to a curvilinear relationship, where high levels of TQM favour a more than proportionate effect on the development of innovation. It also clarifies the mechanisms by which this effect is produced, with MO and KM as mediator variables.

Aligning organizational culture and operations strategy to improve innovation outcomes

Purpose

Innovation is a key factor in assessing organizational success. The purpose of this paper is to examine how the organizational culture and operations strategy impact organizational innovation. It explores the influence of various combinations of organizational cultures and operations strategies on a firm’s ability to innovate both in process and product.

Design/methodology/approach

A conceptual model is developed which attempts to explain how the reciprocal and dynamic interactive relationship between organizational culture and operations strategy and innovation is structured. In total, 233 valid questionnaires were collected from 17 small- and medium-sized enterprises (SMEs) in Taiwan. Structural equation modeling was used to investigate the direction and strengths of the relationships and develop a comprehensive picture to illustrate the drivers of successful innovation.

Findings

The analysis and conclusions confirm the suitability of Culture–Strategy–Innovation Model and the detailed results demonstrate that a combination of innovative organizational culture and flexibility-oriented operations strategy has the strongest influence on a firm’s innovation process thereby improving their innovative organizational outcomes.

Practical implications

Although based on Taiwanese manufacturing industries these results provide useful insights for manufacturing industries in general. In alternative contexts, the combination of different dimensions of culture and strategy can be expected to cause different levels of success in innovation. This study provides robust evidence to explain the organizational climate needed to guide the innovative and flexibility considerations needed for SMEs in the manufacturing industry.

Originality/value

This is an empirical study which specifically investigates the activities of SMEs in the metal/plastic manufacturing industry in Taiwan and in particular examines organizational culture, operations strategies and innovation. The research model proposed and confirmed offers a new multi-dimensional structure of culture and strategy linked with their various related dynamic interrelationships and the drivers that impact organizational innovation.