The building evaluation system of innovation vitality on enterprises: Based on an exploratory factor analysis

Abstract

Being the major players in promoting innovation, enterprises are therefore central to innovation–based development. Establishing how vibrant they are in terms of innovation has become a heavily debated issue in both academic and industry circles. Through a sample involving Chinese listed companies in advanced material manufacturing, this study utilizes exploratory factor analysis to develop an evaluation system of enterprises’ innovation vitality on the basis of three dimensions: innovation persistence, volatility, and growth. The study establishes deeper interaction between innovation vitality and two major indicators-persistence and volatility formats input and cooperation, while also promoting the growth of innovative input and output. This study adds insights related to the objective assessment of enterprises’ innovation vitality and the promotion of subsequent innovation efforts.

Graphical abstract

Keywords

innovation vitality / innovation persistence / innovation volatility / innovation growth / exploratory factor analysis

References

[1] Akinwale Y O, Akinbami J F K, Akarakiri J B, (2018). Factors influencing technology and innovation capability in the Nigerian indigenous oil firms. International Journal of Business Innovation and Research, 15( 2): 247–268

[2] Aspden H, (1983). Patent statistics as a measure of technological vitality. World Patent Information, 5( 3): 170–173

[3] Baily M N, Bosworth B P, (2014). US manufacturing: Understanding its past and its potential future. Journal of Economic Perspectives, 28( 1): 3–26

[4] Bakker A B, Petrou P, Op den Kamp E M, Tims M, (2020). Proactive vitality management, work engagement, and creativity: The role of goal orientation. Applied Psychology, 69( 2): 351–378

[5] Battistella C, Ferraro G, Pessot E, (2023). Technology transfer services impacts on open innovation capabilities of SMEs. Technological Forecasting and Social Change, 196: 122875

[6] Becker W, Dietz J, (2004). R&D cooperation and innovation activities of firms—Evidence for the German manufacturing industry. Research Policy, 33( 2): 209–223

[7] Bishwas S K, (2015). Achieving organization vitality through innovation and flexibility: An empirical study. Global Journal of Flexible Systems Managment, 16( 2): 145–156

[8] Bishwas S K, (2016). LIFE: an integrated view of meta organizational process for vitality. Journal of Management Development, 35( 6): 747–764

[9] Boeing P, Mueller E, Sandner P, (2016). China’s R&D explosion—Analyzing productivity effects across ownership types and over time. Research Policy, 45( 1): 159–176

[10] Bos-Nehles A C, Veenendaal A A, (2019). Perceptions of HR practices and innovative work behavior: the moderating effect of an innovative climate. International Journal of Human Resource Management, 30( 18): 2661–2683

[11] Chen J, Heng C S, Tan B C Y, Lin Z, (2018). The distinct signaling effects of R&D subsidy and non-R&D subsidy on IPO performance of IT entrepreneurial firms in China. Research Policy, 47( 1): 108–120

[12] Coad A, Rao R, (2008). Innovation and firm growth in high-tech sectors: A quantile regression approach. Research Policy, 37( 4): 633–648

[13] Coluzzi C, Ferrando A, Martinez-Carrascal C, (2015). Financing obstacles and growth: An analysis for euro area non-financial firms. European Journal of Finance, 21( 10–11): 773–790

[14] Conceição P, Heitor M V, Vieira P S, (2006). Are environmental concerns drivers of innovation? Interpreting Portuguese innovation data to foster environmental foresight. Technological Forecasting and Social Change, 73( 3): 266–276

[15] Daronco E L, Silva D S, Seibel M K, Cortimiglia M N, (2023). A new framework of firm-level innovation capability: A propensity–ability perspective. European Management Journal, 41( 2): 236–250

[16] Davis J P, Eisenhardt K M, (2011). Rotating leadership and collaborative innovation: Recombination processes in symbiotic relationships. Administrative Science Quarterly, 56( 2): 159–201

[17] Dawid H, Kopel M, Kort P M, (2013). R&D competition versus R&D cooperation in oligopolistic markets with evolving structure. International Journal of Industrial Organization, 31( 5): 527–537

[18] Dewangan V, Godse M, (2014). Towards a holistic enterprise innovation performance measurement system. Technovation, 34( 9): 536–545

[19] Forsman H, (2011). Innovation capacity and innovation development in small enterprises. A comparison between the manufacturing and service sectors. Research Policy, 40( 5): 739–750

[20] Ganguly A, Talukdar A, Chatterjee D, (2019). Evaluating the role of social capital, tacit knowledge sharing, knowledge quality and reciprocity in determining innovation capability of an organization. Journal of Knowledge Management, 23( 6): 1105–1135

[21] Hai B, Gao Q, Yin X, Chen J, (2020). R&D volatility and market value: the role of executive overconfidence. Chinese Management Studies, 14( 2): 411–431

[22] He Q, Wu Z, Chen X, (2024). An integrated framework for automatic green building evaluation: A case study of China. Frontiers of Engineering Management, 11( 2): 269–287

[23] Henard D H, Szymanski D M, (2001). Why some new products are more successful than others. Journal of Marketing Research, 38( 3): 362–375

[24] HuB (2012). Evaluation model for enterprise’s innovation vigor on fuzzy mathematics. In: 2012 Second International Conference on Business Computing and Global Informatization, IEEE. 545–548

[25] Huang Y, Chen X, (2021). A moderated mediation model of idiosyncratic deals and innovative performance of R&D employees: Roles of vitality. Chinese Management Studies, 15( 4): 785–800

[26] Kafouros M C, Wang P, Piperopoulos Zhang M, (2015). Academic collaborations and firm innovation performance in China: The role of region-specific institutions. Research Policy, 44( 3): 803–817

[27] Lavrusheva O, (2020). The concept of vitality. Review of the vitality-related research domain. New Ideas in Psychology, 56: 100752

[28] Nagaoka S, Motohashi K, Goto A, (2010). Patent statistics as an innovation indicator. In: Handbook of the Economics of Innovation. North-Holland, 2: 1083–1127

[29] OECD/Eurostat (2005), Oslo manual-guidelines for collecting and interpreting innovation data, OECD Publishing, Paris

[30] Rajapathirana R J, Hui Y, (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge, 3( 1): 44–55

[31] Reio Jr, T G, & Ghosh R, (2009). Antecedents and outcomes of workplace incivility: Implications for human resource development research and practice. Human Resource Development Quarterly, 20( 3): 237–264

[32] Reio Jr T G, & Shuck B, (2015). Exploratory factor analysis: implications for theory, research, and practice. Advances in Developing Human Resources, 17( 1): 12–25

[33] Rosenbusch N, Brinckmann J, Bausch A, (2011). Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs. Journal of Business Venturing, 26( 4): 441–457

[34] Rong Z, Wu X, Boeing P, (2017). The Effect of Institutional Ownership on Firm Innovation: Evidence from Chinese Listed Firms. Research Policy, 46( 9): 1533–1552

[35] Runge S, Schwens C, Schulz M, (2022). The invention performance implications of coopetition: How technological, geographical, and product market overlaps shape learning and competitive tension in R&D alliances. Strategic Management Journal, 43( 2): 266–294

[36] Ryan K R, Down M P, Banks C E, (2021). Future of additive manufacturing: Overview of 4D and 3D printed smart and advanced materials and their applications. Chemical Engineering Journal, 403: 126162

[37] Rydvalova P, Antlova K, (2020). Vitality and continuity of family businesses. Journal of Business, Economics and Management, 21( 5): 1432–1450

[38] Saunila M, (2020). Innovation capability in SMEs: A systematic review of the literature. Journal of Innovation & Knowledge, 5( 4): 260–265

[39] SavolainenTHäkkinen S (2011). Trusted to lead: Trustworthiness and its impact on leadership. Open Source Business Resource, 2011

[40] Savolainen T, Lopez-Fresno P, (2013). Trust as intangible asset enabling intellectual capital development by leadership for vitality and innovativeness. Electronic Journal of Knowledge Management, 11( 3): 244–255

[41] Sher P J, Yang P Y, (2005). The effects of innovative capabilities and R&D clustering on firm performance: The evidence of Taiwan’s semiconductor industry. Technovation, 25( 1): 33–43

[42] Smith M, Busi M, Ball P, Van Der Meer R, (2008). Factors influencing an organisation’s ability to manage innovation: A structured literature review and conceptual model. International Journal of Innovation Management, 12( 4): 655–676

[43] Smith W S, (2009). Vitality in business: executing a new strategy at Unilever. Journal of Business Strategy, 30( 4): 31–41

[44] Song Y, (2018). Improving primary students’ collaborative problem solving competency in project-based science learning with productive failure instructional design in a seamless learning environment. Educational Technology Research and Development, 66( 4): 1–30

[45] Sun X, Zhao D, Zhang D, Tian F, (2022). Entrepreneurship and sustainable innovation capabilities in platform enterprises: The mediating role of knowledge integration. Chinese Management Studies, 16( 3): 627–652

[46] Sun Y, Zhang C, Kok R A W, (2020). The role of research outcome quality in the relationship between university research collaboration and technology transfer: Empirical results from China. Scientometrics, 122( 2): 1003–1026

[47] Vicenzi R, Adkins G, (2000). A tool for assessing organizational vitality in an era of complexity. Technological Forecasting and Social Change, 64( 1): 101–113

[48] Wang X, Dass M, (2017). Building innovation capability: The role of top management innovativeness and relative-exploration orientation. Journal of Business Research, 76: 127–135

[49] Wang C, Kafouros M, Yi J, Hong J, & Ganotakis P, (2020). The role of government affiliation in explaining firm innovativeness and profitability in emerging countries: Evidence from China. Journal of World Business, 55( 3): 101047

[50] Yang J, Wu J, Li X, Zhu Q, (2022). Sustainability performance analysis of environment innovation systems using a two-stage network DEA model with shared resources. Frontiers of Engineering Management, 9( 3): 425–438

[51] Yuan B L, Ren S G, Hu X, Yang X Y, (2016). The difference effect of environmental regulation on two stages of technology innovation in China’s manufacturing industry. Frontiers of Engineering Management, 3( 1): 24–29

[52] ZhangHWang ZChangYTianX (2018). Research on theory, connotation and evaluation system of state owned enterprises’ innovative vitality. In: 2018 4th International Conference on Economics, Social Science, Arts, Education and Management Engineering (ESSAEME 2018). Atlantis Press, 342–346

[53] Zhang Y, Li R, Xie Q, (2023). Does digital transformation promote the volatility of firms’ innovation investment? MDE. Managerial and Decision Economics, 44( 8): 4350–4362

[54] Zheng Y, Liu J, George G, (2010). The dynamic impact of innovative capability and inter-firm network on firm valuation: A longitudinal study of biotechnology start-ups. Journal of Business Venturing, 25( 6): 593–609

[55] ZhouQChen CWuX (2008). An empirical research on the relationship between enterprises’ technology innovation vitality and performance. In: 2008 International Conference on Management Science and Engineering 15th Annual Conference Proceedings. Long Beach, CA, USA, 1614–1619

[56] Zhou Z, Ou J, Wang S, Chen X, (2016). The building of papermaking enterprise’s recycling economy evaluation index system based on value flow analysis. Frontiers of Engineering Management, 3( 1): 9–17

RIGHTS & PERMISSIONS

Higher Education Press