The relationship between Innovation and Global Competitiveness: The mediating role of Management Practices evaluated by Structural Equation Modeling

Abstract

Purpose -This study seeks to investigate whether a good management environment in companies determines results in terms of country competitiveness. Additionally, it aims to verify if innovation plays a role in contributing to this.Design/methodology/approach -The study used structural equation modeling and data on 138 countries contemplated in The Global Competitiveness Report 2016. A number of theories have been used to relate competitiveness to innovation and to management practices. This discussion was expanded, taking these variables into account in a more comprehensive framework.

Boas Práticas de Gestão e Capacidade Absortiva: Impactos na Produtividade das Firmas

“…There is no way to neglect the importance of good management practices in the context of innovation and firms' competitiveness (Agarwal et al, 2014;Bloom & Van Reenen, 2010;Bloom et al, 2019;Feldmann et al, 2019). The role of this variable is evidenced as an agglutinating and guiding element of activities in the search for external knowledge (absorptive capacity), seeking to improve productivity and, consequently, the firms' performance.…”

“…Academic literature, documents from government agencies about management issues (Agarwal et al, 2014;Bloom & Van Reenen, 2010;Feldmann et al, 2019;Ledereman et al, 2014), and numbers about the efforts toward innovation usually associate good results on this matter with developed countries. This research associates good management practices and absorptive capacity with productivity, offering elements for discussion, as presented in this section.…”

“…Studies have shown that other variables in addition to absorptive capacity may be associated with productivity, such as the case of 'good management practices' (Agarwal, Brown, Green, Randhawa, & Tan, 2014;Bloom & Van Reenen, 2010;Feldmann, 2009;Feldmann, Jacomossi, Barrichello, & Morano, 2019;Kerzner, 2018;Mundlack, 1961). Research suggests that firms adopting results-oriented management practices are more competitive than others.…”

Analysis of the correlation between the companies’ investment in research, development and profitability, and the countries’ competitiveness and innovation capability

“…Without innovation in the companies, national economy steadies and presents no changes (Spescha;Woerter, 2019). For such, innovation is important for the development and growth of the countries (Buesa et al, 2010;Feldman et al 2019), which reinforces the importance of policies that strengthen R&D activities in companies (Buesa et al, 2010;Grassano, 2019).…”

The Role of Innovation Efforts in Raising the Growth Performance of Technology and Knowledge-Based Small and Medium-Sized Firms. Evidence from the Italian Context

“…Innovation is recognized as a dominant factor in the consolidation of global competitiveness (Feldman et al, 2019). In fact, it stimulates organizational growth and constitutes the driving force that allows the corporate system to support its economic activities in the complex socio-economic system (Grover Goswami et al, 2019;Bravo-Biosca et al, 2016).…”