The Influence of Entrepreneurial Orientation on Types of Process Innovation Capabilities and Moderating Role of Social Capital
-
Mir Dost
,
Muhammad Arshad
Abstract
Innovation either in products or processes requires innovation capability. Such ability, as a result, facilitates firms to succeed and gain competitive advantage in the industry by improving their efficiency of creating and marketing products and/or services. In this context, current research examines how risk-taking and proactivity dimensions of entrepreneurial orientation influence types of process innovative capabilities; and to what extent this relationship is strengthened/weakened by social capital. Authors collected data from chemical manufacturing firms of Pakistan, and carefully analyzed it with multiple regression technique. The findings revealed that proactivity and risk-taking facilitate incremental and radical process innovation. The moderation of social capital further strengthened the impact proactivity had on radical process innovation. However, moderation of social capital did not strengthen the impact risk-taking had on incremental and radical process innovation. Surprisingly, social capital demonstrated significantly positive impact on radical process innovation. The paper also discusses the theoretical and managerial implications.
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A Appendix
Item and exploratory factor analysis results for the entrepreneurial orientation, social capital, radical and incremental process innovative capability measures.
| Dimension | Reference | Item | Factor | ||||
|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | |||
| Social capital | (Subramaniam and Youndt 2005) | Employees of our organization share information and learn from each other. | 0.88 | −0.01 | 0.07 | 0.06 | 0.10 |
| Employees of our organization cooperate and exchange ideas with people from different areas of the firm. | 0.84 | −0.03 | 0.02 | 0.13 | 0.03 | ||
| Employees of our organization are skilled at working together to investigate and solve problems. | 0.77 | −0.00 | −0.04 | 0.08 | 0.06 | ||
| Employees of our organization partner with suppliers, customers, alliance partners, i.e. developing solutions. | 0.74 | −0.03 | 0.03 | 0.07 | 0.10 | ||
| Employees of our organization apply knowledge from one area of the company problems and opportunities that arise in other departments. | 0.72 | 0.04 | −0.03 | 0.13 | 0.00 | ||
| Risk-taking | Typically adopt a bold, aggressive posture in order to maximize the probability of exploiting potential opportunities | −0.00 | 0.90 | 0.00 | 0.06 | 0.09 | |
| Our organization has a strong proclivity for high-risk projects | −0.02 | 0.84 | 0.02 | 0.09 | 0.00 | ||
| Our organization believes that owing to the nature of the environment, bold, wide-ranging acts are necessary to achieve its objectives | −0.00 | 0.80 | −0.03 | 0.09 | −0.04 | ||
| Proactivity | (Pérez-Luño, Wiklund, and Cabrera 2011). | Our organization typically initiates actions that competitors then respond to | −0.00 | −0.00 | 0.90 | −0.04 | −0.01 |
| Our organization typically adopts a very competitive, “undo-the-competitors” posture | 0.07 | 0.04 | 0.81 | −0.01 | 0.06 | ||
| Our organization is very often the first business to introduce new products or technologies | −0.03 | −0.04 | 0.76 | 0.06 | 0.05 | ||
| Radical process innovative capability | Process innovations that fundamentally change your prevailing processes/services. | 0.10 | 0.10 | 0.09 | 0.88 | −0.01 | |
| Process innovations that make your prevailing process/service lines obsolete | 0.18 | −0.01 | −0.05 | 0.74 | 0.07 | ||
| (Subramaniam and Youndt 2005) | Process innovations that make your existing expertise in prevailing processes/services obsolete | 0.12 | 0.18 | −0.01 | 0.72 | 0.10 | |
| Incremental process innovative capability | Innovations that reinforce organization's prevailing process technology lines | 0.12 | 0.04 | 0.01 | 0.23 | 0.80 | |
| Innovations that reinforce how organization currently competes | 0.07 | 0.05 | 0.02 | −0.04 | 0.76 | ||
| Innovations that reinforce your existing expertise in prevailing processes | 0.05 | −0.05 | 0.06 | 0.01 | 0.73 | ||
© 2018 Walter de Gruyter GmbH, Berlin/Boston
Articles in the same Issue
- Competitive Research Articles
- Where Do Accelerators Fit in the Venture Creation Pipeline? Different Values Brought by Different Types of Accelerators
- Size Matters: The Impact of Loan Size on Measures of Disparate Treatment toward Minority Entrepreneurs in the Small Firm Credit Market
- The Influence of Entrepreneurial Orientation on Types of Process Innovation Capabilities and Moderating Role of Social Capital
- Comparative Entrepreneurship between Western Europe and Latin America
Articles in the same Issue
- Competitive Research Articles
- Where Do Accelerators Fit in the Venture Creation Pipeline? Different Values Brought by Different Types of Accelerators
- Size Matters: The Impact of Loan Size on Measures of Disparate Treatment toward Minority Entrepreneurs in the Small Firm Credit Market
- The Influence of Entrepreneurial Orientation on Types of Process Innovation Capabilities and Moderating Role of Social Capital
- Comparative Entrepreneurship between Western Europe and Latin America
