Enhancing innovation capability through relationship management and implications for performance

Abstract

Purpose -The purpose of this paper is to examine empirically the antecedents and consequences of innovativeness or innovation capability of logistics service providers (LSPs). In particular relationship orientation is examined as an antecedent to innovativeness that will in turn lead to higher levels of logistics service quality and firm performance. The outcomes aim at contributing towards understanding the main drivers of innovativeness and the outcomes of developing the capability to innovate. Design/methodology/approach -Data to empirically analyze the four research hypotheses on the relationships between relationship orientation, innovativeness, logistics service quality and firm performance are collected via a survey of a random sample of LSPs in Hong Kong and analyzed using structural equation modelling via LISREL 8.52. The LISREL diagnostics indicated good fit of the measurement and structural models, providing supporting evidence to the hypothesized causal relationships. Findings -The empirical findings indicate that relationship orientation in the LSP-client relationship will lead to higher levels of innovativeness, improvement in the quality of logistics service and improved performance for the LSP.Research limitations/implications -The study has indicated that innovativeness is influenced by relationship orientation between two partners in a business-to-business setting. The findings add credence to the relational paradigm, which suggests beneficial performance outcomes of strong relational ties. In addition, that innovativeness is an important determinant of logistics service quality and in consequence customer value and firm performance. Future research may address the issue by adopting a longitudinal rather than a cross-sectional approach and also extend the study to other industrial and cultural contexts. Practical implications -Managers should emphasize the development of client relationships and inter-organisational capabilities that can lead towards higher levels of innovativeness. The study supports the notion that the ability to provide high quality logistics services and fulfil customer requirements requires building client relationships and introducing innovations in processes and techniques. Originality/value -The originality of the paper arises from the fact that innovativeness is examined for the first time as a consequence of relationship orientation and a contributing factor to logistics service quality and performance. In this regard, the paper extends theoretical knowledge and also provides valuable managerial implications to LSPs.

Defining the Concept of Innovation and Firm Innovativeness: A Critical Analysis from Resorce-Based View Perspective

“…There are several ways which managers may implement initially in order to present their commitment to the innovativeness development. But somehow, the adoption of organizational or administrative innovation is influenced by some factors including organization's culture, structure and climate (Kimberly & Evanisko, 1981;Lin, 2006;Panayides, 2006). Additionally, product innovation reflects changes in the end product or service offered by the organization, while process innovation represents changes in the way firms produce end products or services (Cooper, 1998;Utterback, 1996).…”

The Effect of Entrepreneurial Competencies on Innovation: A Case Study of Professional Sport Clubs

“…The positive and meaningful relationship between the relationship competency and innovation shows that relationship is among the most important elements for business success in dynamic and constantly changing environments. The studies by Ramani and Kumar (2008) and Panayides (2006) suggest that customer relationship management (CRM) is one of the important elements for the development of the innovation capability (25 & 26). The positive and significant relationship between the learning competency and innovation indicates that organizational learning provides a context and the requirements for occurrence of innovation, hence improved performance and competitive advantages.…”

Pengembangan Kapabilitas Kolaborasi Dinamis Untuk Meningkatkan Kinerja Bisnis Koperasi Jasa Keuangan Syariah Di Jawa Tengah

“…Lembaga keuangan hendaknya memiliki portofolio produk keuangan yang seimbang untuk mempertahankan dan melindungi posisi pasarnya, kinerja keuangannya dan persaingan masa yang akan datang. Berdasarkan pemikiran Akamavi (2005) dan Panayides (2006) dapat ditarik simpul pemikiran bahwa inovasi produk dan layanan mampu mendorong peningkatan kinerja bisnis, sehingga dapat diajukan hipotesa sebagai berikut;…”

“…Demikian juga Tsai (2010) menemukan bahwa semakin tinggi kapabilitas inovasi maka semakin tinggi kinerja bisnis. Panayides (2006) menyatakan bahwa semakin tinggi inovasi maka semakin tinggi kinerja. Oleh karena itu dapat disimpulkan bahwa semakin tinggi derajat inovasi produk dan layanan, semakin baik kinerja bisnis perusahaan.…”