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The purpose of this paper is to explain to managers of small and medium enterprises (SMEs) and other professionals why they need to connect innovation and value creation in their decision-making processes when dealing with new or existing products.

Innovation and value creation are interconnected and you cannot have one without the other. However, to appreciate that interconnection, one needs to understand the form that value can take in products, the tangible form and the intangible. This understanding helps explain how culture and esteem affect product value, as well as how innovation happens in the technological field and in the cultural field.

Value and innovation are intrinsically connected and this should not be overlooked in any quest for new solutions. SMEs should pay more attention when developing innovation activities to ensure that they have the most suitable organizational structures and resources.

This paper clearly demonstrates the relationship between innovation and value creation.

Previous studies investigating the effects of using social media in the innovation processes of small and medium-sized enterprises (SMEs) yield mixed results, and the conditions for achieving innovation benefits from social media are unclear. The present study seeks to contribute to the understanding of this topic.

With a basis in the literature on open innovation and SMEs, this study develops a model that explains the role of social media in product innovation processes where technological focus and abilities are converted into product innovations. The model is tested through a survey of 305 Danish manufacturing SMEs.

Findings show that SMEs with higher technological orientation (TO) are more inclined to use social media in their product innovation processes and that social media use explains 22.4 percent of the relationship between TO and product innovation performance. On the other hand, the data did not support the assumption that SMEs with high TO achieve higher product innovation benefits than low TO SMEs for similar levels of social media use.

The results suggest that SMEs with lower levels of TO could increase their product innovation performance through increased use of social media in their innovation processes.

The study provides new knowledge on the role of social media in SMEs’ product innovation processes. As the level of TO increases, the use of social media in the innovation process becomes an increasingly important mechanism for deriving the full innovation potential from technological focus and abilities.

The aim of this study was to empirically examine how much traditional attributes and green attributes characterize products within design-oriented firms. Further, we explored how these attributes relate to the perceived level of innovation of the firms.

An exploratory research was carried out in 86 Italian manufacturing companies that are members of the Industrial Design Association. Using the questionnaire method, the entrepreneurs’ perceptions have been analyzed. Data have been treated with hierarchical cluster analysis.

The analysis shows that environmental sustainability is the least important attribute of a design product and four clusters of highly design-oriented firms differ by design-product attributes. Further, the least green firms are also the least innovative in terms of incremental and general innovation.

The small size of the sample and the provenance of firms from a single country imply limited generalizability, and further research on the topic is recommended.

Design-driven innovation based on traditional design attributes provides many competitive advantages to firms. However, given the growing concern about environmental challenges, investing in green attributes in design products allows for remaining competitive and more effective in innovation.

This study, for the first time, reveals the heterogeneity among design-oriented firms, particularly regarding the presence and assortment of traditional design attributes, as well as the incorporation of environmentally friendly attributes in their products. Moreover, the study uncovers the relationship between varying levels of green attributes in the offerings and the perception of the firm’s innovativeness.

While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known about how such strategies influence innovation performance. To address the gap, this paper aims to investigate the impact of a firm’s digital business strategy on its innovation performance.

Drawing on the dynamic capability view, this study examines the mechanism through which a digital business strategy affects innovation performance. Data were collected from 215 firms in China and analyzed using multiple regression and structural equation modeling.

The empirical analysis reveals that a firm’s digital business strategy has positive impacts on both product and process innovation performance. These impacts are partially mediated by knowledge-based dynamic capability. Additionally, a firm’s digital business strategy interacts positively with its entrepreneurial orientation in facilitating knowledge-based dynamic capability. Moreover, market turbulence enhances the strength of this interaction effect. Therefore, entrepreneurial-oriented firms operating in turbulent markets can benefit more from digital business strategies to enhance their knowledge-based dynamic capabilities and consequently improve their innovation performance.

This study contributes to the understanding of how a firm’s digital business strategy interacts with entrepreneurial orientation in turbulent markets to shape knowledge-based dynamic capability, which in turn enhances the firm’s innovation performance.

This paper shows how organisational agility allows companies to adopt the necessary changes to remain competitive and produce with a lower environmental impact, implying customers in the value chain.

This investigation uses a cross-sectional design to collect data on the study variables from a sample of 260 Spanish manufacturing organisations. Structural equations with PLS are applied to test hypotheses.

Results show that organisational agility is positively related to eco-innovation. Furthermore, eco-innovation results in a positive relationship with organisational performance. Finally, it has been found that customer involvement positively moderates the effect of organisational agility on new green processes and products and makes green product innovations more successful.

Conclusions indicate that would be advisable that innovative companies promote capabilities such as organisational agility, and integrating customer involvement throughout their value chain, for developing successful new green products increasing their results with a lower environmental impact. Likewise, the customer’s involvement in eco-innovation projects has been found, in companies with agile behaviours, that could aim to increase their performance, helping to react more quickly to market trends and saving money in product development.

This investigation addresses three gaps previously identified in the literature. Firstly, it covers a lack of research on how agility could foster green innovation and how this could positively affect their performance outcomes. Secondly, it studies a moderating factor, customer involvement, and its effects on the relationship between organisational agility and eco-innovation in product and process and between eco-innovation in product and organisational performance. Thirdly, it introduces dynamic capabilities theory through agility concept to study the dynamic context of the eco-environment.

This study aims to study the moderating effects of private ownership and government support on the relationship between outsourcing and product innovation in entrepreneurial ventures in a transition economy.

The data of 10,296 Vietnamese entrepreneurial ventures from the four rounds of the survey conducted by the General Statistics Office (GSO) of Vietnam to investigate the moderating effects of private ownership and government support on the association between outsourcing and entrepreneurial ventures’ product innovation performance. The Probit regression model is employed to estimate such associations.

Our research uncovered that the impact of outsourcing on the likelihood of product innovation is more significant for entrepreneurial operations characterized by a substantial degree of private ownership and government backing as opposed to those without.

The results of our research indicated that the resource-based perspective and extended resource-based view (ERBV) are essential in examining the impact of gaining resources or skills from external sources on the growth of entrepreneurial enterprises. These ideas have significance and importance not just in industrialized economies but also in countries undergoing transition. Our findings suggest that entrepreneurial enterprises should have the ability to manage a wide range of resources and make decisions about which activities should be handled internally and which should be delegated to other parties.

Our findings also imply that entrepreneurial ventures should be able to control many resources and choose which tasks should be performed in-house and which should be outsourced to third parties.

By adopting and leveraging the resource-based view (RBV) and extended resource-based views (ERBV), our study developed a theoretical model about private ownership and government support for moderate outsourcing’s impact on entrepreneurial innovation in a transition economy.

Machine learning (ML) analytical tools are increasingly being considered as an alternative quantitative methodology in management research. This paper proposes a new approach for uncovering the antecedents behind product and product–service innovation (PSI).

The ML approach is novel in the field of innovation antecedents at the country level. A sample of the Equatorian National Survey on Technology and Innovation, consisting of more than 6,000 firms, is used to rank the antecedents of innovation.

The analysis reveals that the antecedents of product and PSI are distinct, yet rooted in the principles of open innovation and competitive priorities.

The analysis is based on a sample of Equatorian firms with the objective of showing how ML techniques are suitable for testing the antecedents of innovation in any other context.

The novel ML approach, in contrast to traditional quantitative analysis of the topic, can consider the full set of antecedent interactions to each of the innovations analyzed.

The authors provide new quantitative evidence of the relationship between technologies and organizational design in the context of complex one-off products. The systems that produce complex, one-off products in mature, fragmented industries such as construction lack many of the typical organizational features that researchers have deemed critical to product development success (e.g., team familiarity, frequent communication, and strong leadership). In contrast, the complexity of these products requires a diverse knowledge base that is rarely found within a single firm. The one-off nature of construction’s products further requires improvization and development by a distributed network of highly specialized teams. And because the product is complex, significant innovations in the end product require systemic shifts in the product architecture. Riitta Katila, Raymond E. Levitt and Dana Sheffer use an original, hand-collected dataset of the design and construction of 112 energy-efficient “green” buildings in the United States, combined with in-depth fieldwork, to study these questions. A key conclusion is that the mature US construction industry, with its particularly fragmented supply chain, is not well suited to implementing “systemic innovations” that require coordination across trades or stages of the project. However, project integration across specialists with the highest levels of interdependence (i.e., craft, contract integration) mitigates the knowledge and coordination problems. There are implications for research on how technology shapes organizations (and particularly how organizations shape technology), and on the supply chain configuration strategies of firms in the construction industry as well as building owners who are seeking to build the best buildings possible within their budgets.

This article focusses on the hybrid strategy, a simultaneous combination of cost leadership and differentiation strategy. The study aims to examine the impact of hybrid strategy on firm performance through its anticipated positive effects on process and product innovation. In addition, we study the moderating role of adaptive capacity in the direct relationships of hybrid strategy with process and product innovation.

Structural equation modelling was used to analyse 1,842 Spanish firms with fewer than 250 employees. We randomly selected small and medium-sized enterprises (SMEs) operating in Spain from the Spanish Central Business Directory (2021) database. The overall sample design was based on stratified sampling.

We found that hybrid strategy is positively related to firm performance and to process and product innovation. Additionally, in firms implementing hybrid strategies, process innovation fostered firm performance. Finally, adaptive capacity strengthened the relationships of hybrid strategy with process and product innovation. This sheds light on how and when hybrid strategy is most effective in fostering SME performance.

We highlight that SMEs need to establish strategies that use diverse resources and capabilities and not just generate competitive advantage using one strategy (cost leadership or differentiation strategy). This requires an agile and flexible systems and structures.

Our research provides novel results by proposing the adoption of hybrid strategies instead of pure strategies (cost leadership and differentiation strategy) as a way for SMEs to survive during crises. Unlike “stuck in the middle” strategies, our study demonstrates the importance of hybrid strategies in a comprehensive model that links them to innovation and firm performance, with adaptive capacity being a determining factor.

This paper aims to examine the interrelation between two innovating strategies (product and process) on total factor productivity (TFP) growth and the dynamic linkages between these strategies, for Colombia. The authors first explore whether ex ante more productive firms are those that introduce innovations (the self-selection hypothesis) and if the introduction of innovations boosts TFP growth (the returns-to-innovation hypothesis). Second, the authors study the firm’s joint dynamic decision to implement process and/or product innovations. The authors use Colombian manufacturing data from the Annual Manufacturing and the Technological Development and Innovation Surveys.

This study uses a four-stage procedure. First, the authors estimate TFP using a modified version of Olley and Pakes (1996) and Levinsohn and Petrin (2003), proposed by De Loecker (2010), that implements an endogenous Markov process where past firm innovations are endogenized. This TFP would be estimated by GMM, Wooldridge (2009). Second, the authors use multivariate discrete choice models to test the self-selection hypothesis. Third, the authors explore, using multi-value treatment evaluation techniques, the life span of the impact of innovations on productivity growth (returns to innovation hypothesis). Fourth, the authors analyse the joint likelihood of implementing process and product innovations using dynamic panel data bivariate probit models.

The investigation reveals that the self-selection effect is notably more pronounced in the adoption of process innovations only, as opposed to the adoption of product innovations only or the simultaneous adoption of both process and product innovations. Moreover, our results uncover distinct temporal patterns concerning innovation returns. Specifically, process innovations yield immediate benefits, whereas implementing both product innovations only and jointly process and product innovations exhibit significant, albeit delayed, advantages. Finally, the analysis confirms the existence of dynamic interconnections between the adoption of process and product innovations.

The contribution of this work to the literature is manifold. First, the authors thoroughly investigate the relationship between the implementation of process and product innovations and productivity for Colombian manufacturing explicitly recognising that firms’ decisions of adopting product and process innovations are very likely interrelated. Therefore, the authors start exploring the self-selection and the returns to innovation hypotheses accounting for the fact that firms might implement process innovations only, product innovations only and both process and product innovations. In the analysis of the returns of innovation, the fact that firms may choose among a menu of three innovation strategies implies the use of evaluation methods for multi-value treatments. Second, the authors study the dynamic inter-linkages between the decisions to implement process and/or product innovations, that remains under studied, at least for emerging economies. Third, the estimation of TFP is performed using an endogenous Markov process, where past firms’ innovations are endogenized.