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Although emerging-economy firms (E-E firms) must have a keen interest in improving their performance by utilizing knowledge transferred from their advanced international joint venture (IJV) partner, there has been little research on the performance implications of E-E firms’ knowledge transferred from their advanced IJV partner. So, drawing on open innovation and organizational learning perspectives, we examine whether, how, and when E-E firms’ knowledge acquisition from their IJV partner has a positive impact on their financial performance. Based on data collected from 127 Thai manufacturing firms with a local IJV partnered with an advanced overseas firm, our results reveal that E-E firms’ knowledge acquisition from their IJV partner has an overall positive influence on their financial performance in terms of growth and profitability. Our results further show that innovation performance mediates the relationship between E-E firms’ knowledge acquisition and their financial performance based on a moderated mediation analysis including innovation performance as a mediator and absorptive capacity as a moderator. It is also found that the positive mediation effect of innovation performance is more pronounced in the presence of higher absorptive capacity than otherwise. That is, our results show that even among E-E firms which have acquired much knowledge from their IJV partner, those with higher absorptive capacity achieve better innovation performance than those with lower absorptive capacity, and improved innovation performance subsequently contributes to producing superior financial performance. The key conclusions, implications, and limitations of our study are presented based on these findings.
Choo Kim; Eun-Hwa Seo; Canisha Booranabanyat; Kwangsoo Kim. Effects of Emerging-Economy Firms’ Knowledge Acquisition from an Advanced International Joint Venture Partner on Their Financial Performance Based on the Open Innovation Perspective. Journal of Open Innovation: Technology, Market, and Complexity 2021, 7, 67 .
AMA StyleChoo Kim, Eun-Hwa Seo, Canisha Booranabanyat, Kwangsoo Kim. Effects of Emerging-Economy Firms’ Knowledge Acquisition from an Advanced International Joint Venture Partner on Their Financial Performance Based on the Open Innovation Perspective. Journal of Open Innovation: Technology, Market, and Complexity. 2021; 7 (1):67.
Chicago/Turabian StyleChoo Kim; Eun-Hwa Seo; Canisha Booranabanyat; Kwangsoo Kim. 2021. "Effects of Emerging-Economy Firms’ Knowledge Acquisition from an Advanced International Joint Venture Partner on Their Financial Performance Based on the Open Innovation Perspective." Journal of Open Innovation: Technology, Market, and Complexity 7, no. 1: 67.
Although user innovation has been regarded as an important source of firms’ competitive advantage, the internal processes and mechanisms involved in the relationship between firms’ user innovation activities and market performance are seldom studied. By applying moderated mediation analyses, we examine (1) whether firms’ user innovation activities have a positive impact on market performance and (2) how and under what conditions user innovation activities can have a positive impact on a firm’s market performance. The findings on a sample of Korean manufacturing firms indicate that user innovation activities significantly increase firms’ innovation performance, which consequently leads to superior market performance (confirming the mediation effect of innovation performance). Additionally, we observe the positive mediation effect of innovation performance only in firms with higher levels of absorptive capacity (confirming the moderated mediation effect of absorptive capacity). Further analysis confirms that the positive interaction effects between user innovation activities and absorptive capacity on market performance through innovation performance were more pronounced for firms with higher Chief Executive Officer (CEO) shareholding levels (confirming the moderated mediation effect of CEO’s shareholding). Our findings provide theoretical and practical implications on the successful implementation of user innovation strategies.
Eun Hwa Lee; Choo Yeon Kim; Jae Wook Yoo. Relationship between User Innovation Activities and Market Performance: Moderated Mediating Effect of Absorptive Capacity and CEO’s Shareholding on Innovation Performance. Sustainability 2020, 12, 10532 .
AMA StyleEun Hwa Lee, Choo Yeon Kim, Jae Wook Yoo. Relationship between User Innovation Activities and Market Performance: Moderated Mediating Effect of Absorptive Capacity and CEO’s Shareholding on Innovation Performance. Sustainability. 2020; 12 (24):10532.
Chicago/Turabian StyleEun Hwa Lee; Choo Yeon Kim; Jae Wook Yoo. 2020. "Relationship between User Innovation Activities and Market Performance: Moderated Mediating Effect of Absorptive Capacity and CEO’s Shareholding on Innovation Performance." Sustainability 12, no. 24: 10532.
The purpose of our study is to examine the mechanisms that link environmental dynamism to firms’ innovation performance. Although there have been extensive studies on the effect of environmental dynamism on innovation performance, they have focused primarily on its direct effect and have resulted in rather inconsistent research findings. Thus, to explain the relationship between environmental dynamism and innovation performance more clearly, we intend to investigate the mechanisms through which environmental dynamism influences innovation performance in this study. Specifically, we aim to examine the mediation effects of strategic prospecting, absorptive capacity, and combined strategic prospecting–absorptive capacity on the relationship between environmental dynamism and innovation performance. Based on data collected from 266 small and medium-sized firms in Korea, our study has found that, assuming a causal interdependence between the mediators, both strategic prospecting and combined strategic prospecting–absorptive capacity mediate the relationship between environmental dynamism and innovation performance. It has also been found, however, that absorptive capacity alone does not mediate the relationship between environmental dynamism and innovation performance, while absorptive capacity mediates the relationship when it is linked to strategic prospecting. The results of our study further reveal that no direct effect of environmental dynamism on innovation performance exists, implying that the significant effect of environmental dynamism on innovation performance demonstrated in previous studies may be spurious in nature. Based on the findings, we present conclusions, theoretical and practical implications, and limitations with future research directions.
Eun-Hwa Seo; Choo-Yeon Kim; Kwangsoo Kim. A Study on the Mechanisms Linking Environmental Dynamism to Innovation Performance. Sustainability 2020, 12, 9999 .
AMA StyleEun-Hwa Seo, Choo-Yeon Kim, Kwangsoo Kim. A Study on the Mechanisms Linking Environmental Dynamism to Innovation Performance. Sustainability. 2020; 12 (23):9999.
Chicago/Turabian StyleEun-Hwa Seo; Choo-Yeon Kim; Kwangsoo Kim. 2020. "A Study on the Mechanisms Linking Environmental Dynamism to Innovation Performance." Sustainability 12, no. 23: 9999.
Whether to have a similar or different strategy than firms in same industry is the fundamental question for firms that want to build a competitive advantage. Recent literature, such as the new institutional theory and the perspective of optimal distinctiveness, has emphasized the configuration of competing forces that make firms simultaneously similar by conforming to industry norms and different by implementing innovation, leading to high performance. The primary rationale is that firms can exploit their high status of conformity as a stock of capital to differentiate themselves when required. Upon this rationale, we conducted research to test the hypotheses for optimal distinctiveness in the strategies of manufacturing firms in Korea. The results show that Korean firms have higher performance when they are mutually involved in higher conformity and innovation. It also suggests that firms in the industry with high volatility have difficulties in managing optimal distinctiveness of strategic conformity with innovation.
Myung Sub Lim; Choo Yeon Kim; Jae Wook Yoo. How Strategic Conformity Interacts with Innovation: An Empirical Study on Korean Manufacturing Firms from the Perspective of Optimal Distinctiveness. Journal of Open Innovation: Technology, Market, and Complexity 2020, 6, 121 .
AMA StyleMyung Sub Lim, Choo Yeon Kim, Jae Wook Yoo. How Strategic Conformity Interacts with Innovation: An Empirical Study on Korean Manufacturing Firms from the Perspective of Optimal Distinctiveness. Journal of Open Innovation: Technology, Market, and Complexity. 2020; 6 (4):121.
Chicago/Turabian StyleMyung Sub Lim; Choo Yeon Kim; Jae Wook Yoo. 2020. "How Strategic Conformity Interacts with Innovation: An Empirical Study on Korean Manufacturing Firms from the Perspective of Optimal Distinctiveness." Journal of Open Innovation: Technology, Market, and Complexity 6, no. 4: 121.
The purpose of this study is to investigate the mediation effects of external knowledge acquisition on the relationships between environments (dynamism, complexity, and hostility) and innovation. Although prior studies have extensively examined the relationships between environments and innovation or innovativeness, the results of the studies appear to lack consistency. To help clarify the relationships between environments and innovation, this study intends to examine the impact of environments on innovation through external knowledge acquisition, and it is argued that environments are likely to motivate or force firms to acquire new knowledge from the outside, which, in turn, tends to enhance their ability to innovate. Based on data collected from manufacturing SMEs in China through a questionnaire survey, we have found that dynamism, complexity and hostility have all positive total effects on innovation and that they also have positive influences on firms’ external knowledge acquisition. Besides, we have found that external knowledge acquisition has a complete mediation effect on the relationships between all three environmental dimensions and innovation. The results further show that the positive direct effects of all three environmental dimensions on innovation disappear completely when external knowledge acquisition is considered as a mediator. These results imply that the significant relationships between three respective environmental dimensions and innovation demonstrated in prior studies may be spurious. Based on these findings, we have presented key conclusions, implications, and limitations with the direction of future research.
Kwangsoo Kim; Fan Li; Jae Wook Yoo; Choo Yeon Kim. The Relationships among Environments, External Knowledge Acquisition, and Innovation. Sustainability 2020, 12, 5541 .
AMA StyleKwangsoo Kim, Fan Li, Jae Wook Yoo, Choo Yeon Kim. The Relationships among Environments, External Knowledge Acquisition, and Innovation. Sustainability. 2020; 12 (14):5541.
Chicago/Turabian StyleKwangsoo Kim; Fan Li; Jae Wook Yoo; Choo Yeon Kim. 2020. "The Relationships among Environments, External Knowledge Acquisition, and Innovation." Sustainability 12, no. 14: 5541.
The importance of external knowledge acquisition for innovation by firms is well established. In particular, there has been an increasing focus on the two distinct modes of firms’ external search strategies, which have a differential effect on their learning and innovation: search breadth and depth. By applying organizational ambidexterity lens, we hypothesize that pursuing high levels of both external search strategies is beneficial to achieve a balance between exploitative and explorative innovation, which, in turn, has a positive impact on the firm’s innovation performance. We also hypothesize that, even among the firms that maintain high levels of both search strategies, firms with higher absorptive capacity better achieve a balance between both modes of innovation, thereby producing higher performance. The findings on a multi-industry sample of Koran manufacturing firms confirm our hypotheses and imply that it is essential for firms to develop capabilities for different modes of external search activities in conjunction with internal absorptive capacity for superior innovation performance.
Choo Yeon Kim; Myung Sub Lim; Jae Wook Yoo. Ambidexterity in External Knowledge Search Strategies and Innovation Performance: Mediating Role of Balanced Innovation and Moderating Role of Absorptive Capacity. Sustainability 2019, 11, 5111 .
AMA StyleChoo Yeon Kim, Myung Sub Lim, Jae Wook Yoo. Ambidexterity in External Knowledge Search Strategies and Innovation Performance: Mediating Role of Balanced Innovation and Moderating Role of Absorptive Capacity. Sustainability. 2019; 11 (18):5111.
Chicago/Turabian StyleChoo Yeon Kim; Myung Sub Lim; Jae Wook Yoo. 2019. "Ambidexterity in External Knowledge Search Strategies and Innovation Performance: Mediating Role of Balanced Innovation and Moderating Role of Absorptive Capacity." Sustainability 11, no. 18: 5111.