Enhancing the role of knowledge and innovation for development

Kusumawardhani

2018

Global Business Review

Using innovation data derived from the Indonesia Innovation Survey (IIS) 2011, this study investigates the nature and importance of innovation barriers faced by Indonesian manufacturing firms and examines the impact of innovation barriers on product, process, organization and marketing innovation and on innovation performance. Undertaking factor analysis, the study finds that the innovation barriers can be categorized as market and institution barriers, employee and organization attitude barriers, finance and risk barriers, and knowledge and cooperation barriers. Applying logit and tobit regression models, this study shows that barriers related to employee and organization attitude have positive influence on innovation and innovation performance. In contrast, the last two barriers have negative effects on innovation and innovation performance. Financial and risk constraints are perceived by the firms to be the most important barriers. Innovative and non-innovative firms perceive innovation barriers related to lack of information on technology, staff resistance to change, managers resistance to change and organization rigidity, differently.

Section: Descriptive Statisticsmentioning

confidence: 99%

Innovation Barriers and Their Impact on Innovation: Evidence from Indonesian Manufacturing Firms

Kusumawardhani

2018

Global Business Review

“…The mean of innovation success as the proportion of launched products new to the market accounted for 8.43%. The fact that marketing innovation outnumbered other innovation is typical in developing countries that tend to focus on the market rather than on the technology (Wamae, 2009).…”

Section: Methodsmentioning

confidence: 99%

“…Second, a wider innovation classification such as organisational and marketing innovation are assessed (Battisti and Stoneman [2010] for innovation classification), while most innovation survey-based the IVC studies in developed countries context tend to focus on product and process innovations O'Leary, 2011, Ganotakis andLove, 2012;Love et al, 2011;Roper et al, 2008;Roper and Arvanitis, 2012a). In the context of developing countries, innovation activities tend to focus on the market rather than on technology (Wamae, 2009). Innovation activities in developing countries that emphasise on minor and incremental changes on existing products or process innovation as well as innovative approaches to organisation and marketing is a major part of innovation (OECD/ Eurostat, 2005).…”

Section: Introductionmentioning

confidence: 99%

From knowledge sourcing to firms’ productivity: investigating innovation value chain of Indonesian manufacturing firms

Singapurwoko

2021

JABS

Purpose The purpose of this paper is to investigate the innovation value chain (IVC) that encompasses knowledge sourcing, transformation and exploitation activities among Indonesian manufacturing firms by using data from the Indonesia Innovation Survey. Design/methodology/approach A simple approach of single equation Probit model, Logit regression and Tobit regression are used in the first, second and third stages of IVC consecutively. Findings This study finds the existence of a synergistic relationship between internal and external sources of knowledge as well as among external sources of knowledge. In terms of the second link of the IVC, internal R&D plays an important role that positively influences knowledge transformation into all types of innovation and innovation success. External knowledge that has a similar pattern in shaping innovation mainly comes from market and open sources. Scientific institutions tend to contribute to innovation negatively, and few positive impacts on process innovation are observed from government R&D and non-profit R&D institutions. Informal knowledge is more likely to influence technological than non-technological innovation. Research limitations/implications Finally, the limitations of this study need to be acknowledged. Issues related to firms’ sectors have not been discussed in this study, and as a result, sectors’ effects on the three links of IVC cannot be detected. This study is a cross-sectional in nature, as a result, the dynamic of Indonesian manufacturing firms’ IVC is missing. Hence, future studies may address this limitation by conducting a longitudinal study. Originality/value This study is different from the previous IVC studies owing to the following reasons. Firstly, in this study, a broader source of knowledge is tested. Secondly, the wider innovation (technological and non-technological innovation) is also assessed.

“…The mean of innovation success, as the proportion of launched products new to the market, accounted for 8.43%. The fact that marketing innovations outnumbered the other types of innovation is typical in developing countries, which tend to focus on the market rather than on the technology (Wamae, 2009). In terms of the sources of knowledge, on average customers form the highest proportion knowledge source used for innovation by the firms (i.e.…”

Section: Methodsmentioning

confidence: 99%

Searching Widely or Deeply? The Impact of Open Innovation on Innovation and Innovation Performance Among Indonesian Manufacturing Firms

Kusumawardhani

2018

J. Indones.Econ.Bus.

Since the term Open Innovation (OI) was coined by Henry Chesbrough in 2003, OI studies have been frequently conducted. Surprisingly, OI insights, in the context of Indonesian firms, are scarce. Furthermore, there are no existing OI studies that use data derived from innovation surveys. Hence, this study attempts to close the gap in the literature, by providing insights into Indonesian firms’ openness toward external knowledge, and its impact on innovation performance. The main aim of this study is to investigate the impact of OI practices on Indonesian manufacturing firms’ propensity to innovate (i.e. their product, process, organization, and marketing) and innovation performance. Product and process innovations are grouped under the term technological innovation, while organization and marketing innovations are classified as non-technological innovation. Data used in this study were derived from the Indonesia Innovation Survey (IIS) 2011 that covered the period from 2009-2010. Following Laursen and Salter’s (2006) study, OI indicators consist of external search breadth (i.e. the number of external sources or search channels that firms rely upon in their innovative activities) and depth (the extent to which firms draw deeply from the different external sources or search channels) in innovation process. Undertaking logistic and tobit regressions, this study shows that in general, both breadth and depth significantly and positively affect technological and non-technological innovation, as well as innovation performance. However, the over-search on external knowledge, measured by breadth squared and depth squared, negatively and significantly influence innovation and innovation performance. This indicates that too much external knowledge, sourced during the innovation process will diminish the return of innovation. This study also finds an indication of a complementary relationship existing between internal R&D and external knowledge; meaning that the implementation of one knowledge-sourcing strategy (either sourcing from internal R&D or external knowledge) increases the marginal returns from another. Lastly, important implications related to theoretical and innovation strategies are proposed.