IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v41y2020i4p503-519.html
   My bibliography  Save this article

Improving innovation efficiency of emerging economies: The role of manufacturing

Author

Listed:
  • Shi‐Xiao Wang
  • Wen‐Min Lu
  • Shiu‐Wan Hung

Abstract

The purpose of this study is to empirically examine the role of manufacturing in improving innovation efficiency of emerging economies. Emerging economies are developing innovations to promote their industries toward high‐technology sectors to facilitate global competitiveness. Nevertheless, the role of manufacturing is often neglected, which can result in low efficiency in the innovation process. This study constructed a three‐stage innovation model that consists of human capital cultivation, manufacturing development, and innovation production to stress and verify the importance of manufacturing. The experimental results suggest that manufacturing development was a key factor affecting innovation efficiency. A performance improvement strategy map was provided to improve each country's innovation efficiency.

Suggested Citation

  • Shi‐Xiao Wang & Wen‐Min Lu & Shiu‐Wan Hung, 2020. "Improving innovation efficiency of emerging economies: The role of manufacturing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 503-519, June.
    • Handle: RePEc:wly:mgtdec:v:41:y:2020:i:4:p:503-519
    DOI: 10.1002/mde.3116
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3116
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3116?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wang, Eric C. & Huang, Weichiao, 2007. "Relative efficiency of R&D activities: A cross-country study accounting for environmental factors in the DEA approach," Research Policy, Elsevier, vol. 36(2), pages 260-273, March.
    2. Chen, Ping-Chuan & Hung, Shiu-Wan, 2016. "An actor-network perspective on evaluating the R&D linking efficiency of innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 303-312.
    3. Grupp, Hariolf & Schubert, Torben, 2010. "Review and new evidence on composite innovation indicators for evaluating national performance," Research Policy, Elsevier, vol. 39(1), pages 67-78, February.
    4. Golany, B & Roll, Y, 1989. "An application procedure for DEA," Omega, Elsevier, vol. 17(3), pages 237-250.
    5. Montresor, Sandro & Vezzani, Antonio, 2015. "The production function of top R&D investors: Accounting for size and sector heterogeneity with quantile estimations," Research Policy, Elsevier, vol. 44(2), pages 381-393.
    6. Maurice Schiff & Yanling Wang, 2008. "North-South and South-South Trade-Related Technology Diffusion: How Important Are They in Improving TFP Growth?," Journal of Development Studies, Taylor & Francis Journals, vol. 44(1), pages 49-59.
    7. Hatefi, S.M. & Torabi, S.A., 2010. "A common weight MCDA-DEA approach to construct composite indicators," Ecological Economics, Elsevier, vol. 70(1), pages 114-120, November.
    8. Yasuhiro Sato & Takatoshi Tabuchi & Kazuhiro Yamamoto, 2012. "Market size and entrepreneurship," Journal of Economic Geography, Oxford University Press, vol. 12(6), pages 1139-1166, November.
    9. Pınar Kaya Samut & Reyhan Cafrı, 2016. "Analysis of the Efficiency Determinants of Health Systems in OECD Countries by DEA and Panel Tobit," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(1), pages 113-132, October.
    10. Marc J. Melitz & Giancarlo I. P. Ottaviano, 2021. "Market Size, Trade, and Productivity," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 4, pages 87-108, World Scientific Publishing Co. Pte. Ltd..
    11. Daniel Felsenstein, 2015. "Factors Affecting Regional Productivity and Innovation in Israel: Some Empirical Evidence," Regional Studies, Taylor & Francis Journals, vol. 49(9), pages 1457-1468, September.
    12. George E. Halkos & Nickolaos G. Tzeremes, 2013. "A Two‐Stage Double Bootstrap DEA: The Case of the Top 25 European Football Clubs' Efficiency Levels," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 34(2), pages 108-115, March.
    13. Guan, Jiancheng & Chen, Kaihua, 2012. "Modeling the relative efficiency of national innovation systems," Research Policy, Elsevier, vol. 41(1), pages 102-115.
    14. Cristian Barra & Roberto Zotti, 2016. "Managerial Efficiency in Higher Education Using Individual Versus Aggregate Level Data. Does the choice of Decision Making Units Count?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 37(2), pages 106-126, March.
    15. Maciej Smętkowski, 2013. "Regional Disparities in Central and Eastern European Countries: Trends, Drivers and Prospects," Europe-Asia Studies, Taylor & Francis Journals, vol. 65(8), pages 1529-1554, October.
    16. Ogundari, Kolawole, 2014. "The Paradigm of Agricultural Efficiency and its Implication on Food Security in Africa: What Does Meta-analysis Reveal?," World Development, Elsevier, vol. 64(C), pages 690-702.
    17. Omar R. Malik & Masaaki Kotabe, 2009. "Dynamic Capabilities, Government Policies, and Performance in Firms from Emerging Economies: Evidence from India and Pakistan," Journal of Management Studies, Wiley Blackwell, vol. 46(3), pages 421-450, May.
    18. Elizabeth Asiedu, 2006. "Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability," The World Economy, Wiley Blackwell, vol. 29(1), pages 63-77, January.
    19. Tone, Kaoru & Tsutsui, Miki, 2009. "Network DEA: A slacks-based measure approach," European Journal of Operational Research, Elsevier, vol. 197(1), pages 243-252, August.
    20. Markus Balzat & Horst Hanusch, 2004. "Recent trends in the research on national innovation systems," Journal of Evolutionary Economics, Springer, vol. 14(2), pages 197-210, June.
    21. Abiad, Abdul & Bluedorn, John & Guajardo, Jaime & Topalova, Petia, 2015. "The Rising Resilience of Emerging Market and Developing Economies," World Development, Elsevier, vol. 72(C), pages 1-26.
    22. Roper, Stephen & Du, Jun & Love, James H., 2008. "Modelling the innovation value chain," Research Policy, Elsevier, vol. 37(6-7), pages 961-977, July.
    23. Fall, François & Akim, Al-mouksit & Wassongma, Harouna, 2018. "DEA and SFA research on the efficiency of microfinance institutions: A meta-analysis," World Development, Elsevier, vol. 107(C), pages 176-188.
    24. Olu Ajakaiye & Mwangi S. Kimenyi, 2011. "Higher Education and Economic Development in Africa: Introduction and Overview," Journal of African Economies, Centre for the Study of African Economies, vol. 20(suppl_3), pages -13, August.
    25. Brandt, Loren & Van Biesebroeck, Johannes & Zhang, Yifan, 2012. "Creative accounting or creative destruction? Firm-level productivity growth in Chinese manufacturing," Journal of Development Economics, Elsevier, vol. 97(2), pages 339-351.
    26. Hailin Liao & Mark Holmes & Tom Weyman-Jones & David Llewellyn, 2007. "Productivity growth of East Asia economies' manufacturing: A decomposition analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 43(4), pages 649-674.
    27. Chang, Young-Tae & (Kevin) Park, Hyosoo & Zou, Bo & Kafle, Nabin, 2016. "Passenger facility charge vs. airport improvement program funds: A dynamic network DEA analysis for U.S. airport financing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 88(C), pages 76-93.
    28. Lee, Chien-Chiang & Chiu, Yi-Bin, 2016. "Globalization and insurance activity: Evidence on the industrial and emerging countries," The North American Journal of Economics and Finance, Elsevier, vol. 36(C), pages 328-349.
    29. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    30. Yueh-Cheng Wu & Qian Long Kweh & Wen-Min Lu & Noor Azlinna Azizan, 2016. "The impacts of risk-management committee characteristics and prestige on efficiency," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(6), pages 813-829, June.
    31. Almas Heshmati, 2003. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 79-112, February.
    32. Zhang, Chuanguo & Zhuang, Lihuan, 2011. "The composition of human capital and economic growth: Evidence from China using dynamic panel data analysis," China Economic Review, Elsevier, vol. 22(1), pages 165-171, March.
    33. W. Cooper & Shanling Li & L. Seiford & Kaoru Tone & R. Thrall & J. Zhu, 2001. "Sensitivity and Stability Analysis in DEA: Some Recent Developments," Journal of Productivity Analysis, Springer, vol. 15(3), pages 217-246, May.
    34. Marc J. Melitz & Gianmarco I. P. Ottaviano, 2008. "Market Size, Trade, and Productivity (DOI:10.111/j.1467-937x.2007.00463.x)," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(3), pages 985-985.
    35. Jonrinaldi, & Zhang, D.Z., 2013. "An integrated production and inventory model for a whole manufacturing supply chain involving reverse logistics with finite horizon period," Omega, Elsevier, vol. 41(3), pages 598-620.
    36. Avkiran, Necmi Kemal, 2015. "An illustration of dynamic network DEA in commercial banking including robustness tests," Omega, Elsevier, vol. 55(C), pages 141-150.
    37. F. Tao & Y. Cheng & L. Zhang & A. Y. C. Nee, 2017. "Advanced manufacturing systems: socialization characteristics and trends," Journal of Intelligent Manufacturing, Springer, vol. 28(5), pages 1079-1094, June.
    38. Hung, Shiu-Wan & Wang, An-Pang, 2012. "Entrepreneurs with glamour? DEA performance characterization of high-tech and older-established industries," Economic Modelling, Elsevier, vol. 29(4), pages 1146-1153.
    39. Brian P. Cozzarin, 2016. "Advanced technology, innovation, wages and productivity in the Canadian manufacturing sector," Applied Economics Letters, Taylor & Francis Journals, vol. 23(4), pages 243-249, March.
    40. Erin L. Cadwalader, 2014. "Intellectual Property Rights and the Financing of Technological Innovation: Public Policy and the Efficiency of the Markets by Carl Benedikt Frey," Science and Public Policy, Oxford University Press, vol. 41(2), pages 258-260.
    41. H. Son Nghiem & T. Coelli, 2002. "The Effect of Incentive Reforms Upon Productivity: Evidence from the Vietnamese Rice Industry," Journal of Development Studies, Taylor & Francis Journals, vol. 39(1), pages 74-93.
    42. Anjum Siddiqui & Atiq ur Rehman, 2017. "The human capital and economic growth nexus: in East and South Asia," Applied Economics, Taylor & Francis Journals, vol. 49(28), pages 2697-2710, June.
    43. Oscar Afonso, 2016. "R&D intensity, economic growth and firm-size growth: theory and practice," Applied Economics, Taylor & Francis Journals, vol. 48(32), pages 2973-2993, July.
    44. Gregory Tassey, 2014. "Competing in Advanced Manufacturing: The Need for Improved Growth Models and Policies," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 27-48, Winter.
    45. Lee, Hakyeon & Park, Yongtae & Choi, Hoogon, 2009. "Comparative evaluation of performance of national R&D programs with heterogeneous objectives: A DEA approach," European Journal of Operational Research, Elsevier, vol. 196(3), pages 847-855, August.
    46. Mei Hsiu-Ching Ho & John S. Liu, 2013. "The motivations for knowledge transfer across borders: the diffusion of data envelopment analysis (DEA) methodology," Scientometrics, Springer;Akadémiai Kiadó, vol. 94(1), pages 397-421, January.
    47. Zhang, Fang & Gallagher, Kelly Sims, 2016. "Innovation and technology transfer through global value chains: Evidence from China's PV industry," Energy Policy, Elsevier, vol. 94(C), pages 191-203.
    48. Yang, Ma Ga (Mark) & Hong, Paul & Modi, Sachin B., 2011. "Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 129(2), pages 251-261, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Concepción Rubio‐Picón & Francisco Velasco‐Morente & Encarnación Ramos‐Hidalgo & María A. Agustí, 2023. "The effect of innovation efficiency management on performance: Differences according to organizational size," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 336-358, January.
    2. Doré, Natalia I. & Teixeira, Aurora A.C., 2023. "The role of human capital, structural change, and institutional quality on Brazil's economic growth over the last two hundred years (1822–2019)," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 1-12.
    3. Xueling Guan & Lijiang Chen & Qing Xia & Zhaohui Qin, 2022. "Innovation Efficiency of Chinese Pharmaceutical Manufacturing Industry from the Perspective of Innovation Ecosystem," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    4. Sangpil Yoon & Gyuhyung Kim & Yanghon Chung & Hosung Son, 2023. "Is customer involvement always beneficial for R&D efficiency? The difference between high‐tech and low‐tech industries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1678-1688, April.
    5. Natalia I. Doré & Aurora A. C. Teixeira, 2023. "Empirical Literature on Economic Growth, 1991–2020: Uncovering Extant Gaps and Avenues for Future Research," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(1), pages 7-37, January.
    6. Lihua Hu & Yuanyuan Chen & Tao Fan, 2022. "The Influence of Government Subsidies on the Efficiency of Technological Innovation: A Panel Threshold Regression Approach," Sustainability, MDPI, vol. 15(1), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shi‐Xiao Wang & Wen‐Min Lu & Shiu‐Wan Hung, 2020. "Industrial upgrading efficiency and free markets in emerging economies: A two‐stage meta‐frontier approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 1084-1095, September.
    2. Chen, Ping-Chuan & Hung, Shiu-Wan, 2016. "An actor-network perspective on evaluating the R&D linking efficiency of innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 303-312.
    3. Ibrahim Alnafrah, 2021. "Efficiency evaluation of BRICS’s national innovation systems based on bias-corrected network data envelopment analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-28, December.
    4. Vladimír Holý & Karel Šafr, 2018. "Are economically advanced countries more efficient in basic and applied research?," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(4), pages 933-950, December.
    5. Chia-Chin Chang, 2015. "Influences of knowledge spillover and utilization on the NIS performance: a multi-stage efficiency perspective," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(5), pages 1945-1967, September.
    6. Khoshnevis, Pegah & Teirlinck, Peter, 2018. "Performance evaluation of R&D active firms," Socio-Economic Planning Sciences, Elsevier, vol. 61(C), pages 16-28.
    7. Yongqi Feng & Haolin Zhang & Yung-ho Chiu & Tzu-Han Chang, 2021. "Innovation efficiency and the impact of the institutional quality: a cross-country analysis using the two-stage meta-frontier dynamic network DEA model," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(4), pages 3091-3129, April.
    8. Shi, Xing & Wu, Yanrui & Fu, Dahai, 2020. "Does University-Industry collaboration improve innovation efficiency? Evidence from Chinese Firms⋄," Economic Modelling, Elsevier, vol. 86(C), pages 39-53.
    9. Junhee Bae & Yanghon Chung & Hyesoo Ko, 2021. "Analysis of efficiency in public research activities in terms of knowledge spillover: focusing on earthquake R&D accomplishments," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 108(2), pages 2249-2264, September.
    10. Mohammad Nourani & VGR Chandran & Qian Long Kweh & Wen-Min Lu, 2018. "Measuring Human, Physical and Structural Capital Efficiency Performance of Insurance Companies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(1), pages 281-315, May.
    11. Guan, Jiancheng & Chen, Kaihua, 2012. "Modeling the relative efficiency of national innovation systems," Research Policy, Elsevier, vol. 41(1), pages 102-115.
    12. Jaehun Park & Joonyoung Kim & Si-Il Sung, 2017. "Performance Evaluation of Research and Business Development: A Case Study of Korean Public Organizations," Sustainability, MDPI, vol. 9(12), pages 1-16, December.
    13. Tone, Kaoru & Kweh, Qian Long & Lu, Wen-Min & Ting, Irene Wei Kiong, 2019. "Modeling investments in the dynamic network performance of insurance companies," Omega, Elsevier, vol. 88(C), pages 237-247.
    14. Chen, Yufeng & Ni, Liangfu & Liu, Kelong, 2021. "Does China's new energy vehicle industry innovate efficiently? A three-stage dynamic network slacks-based measure approach," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    15. Hsu, Wen-Tai & Lu, Yi & Luo, Xuan & Zhu, Lianming, 2023. "Foreign direct investment and industrial agglomeration: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 610-639.
    16. Yang, Guo-liang & Fukuyama, Hirofumi & Chen, Kun, 2019. "Investigating the regional sustainable performance of the Chinese real estate industry: A slack-based DEA approach," Omega, Elsevier, vol. 84(C), pages 141-159.
    17. Li, Jianglong & Lin, Boqiang, 2017. "Does energy and CO2 emissions performance of China benefit from regional integration?," Energy Policy, Elsevier, vol. 101(C), pages 366-378.
    18. Ming Xu & Tenglong Zhong & Qian Xie & Hongkui Liu, 2022. "Foreign Demand, Competition Strategy, and Export Markups: Evidence from Chinese Multi‐Product Exporters," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(3), pages 187-209, May.
    19. Yang, Zhihao & Hong, Junjie & Wang, Xuan, 2022. "Environmental spillovers in international joint ventures: Evidence from Chinese industrial firms," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    20. H. Pierre Hsieh & Yueh‐Cheng Wu & Wen‐Min Lu & Yao‐Chieh Chen, 2020. "Assessing and ranking the innovation ability and business performance of global companies in the aerospace and defense industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 952-963, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:41:y:2020:i:4:p:503-519. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.