IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v16y2012i02ns1363919611003374.html
   My bibliography  Save this article

Innovation Strategy, Working Climate, And Financial Performance In Traditional Manufacturing Firms: An Empirical Analysis

Author

Listed:
  • ERLEND NYBAKK

    (Norwegian Forest and Landscape Institute, Pb 115, NO-1431 AAs, Norway)

  • JAN INGE JENSSEN

    (University of Agder, Norway)

Abstract

In this study, we address the effect of innovation strategy and an innovative working climate on financial performance in the Norwegian wood industry. Innovation strategy embodies four dimensions: the degrees to which innovation in the form of products, processes, and business systems are embedded in the management values and priorities as well as the degree of expenditure in R&D. An innovative working climate is exemplified by team cohesion, supervisory encouragement, resources, autonomy, challenge, and openness to innovation. Previous studies have indicated a lack of research in traditional manufacturing firms on both innovation strategy and a supportive working climate. Our survey was answered by 241 CEOs. The connectional model was tested with structural equation modelling, and all hypotheses received support. This result implied that innovation strategy and an innovative working climate enhanced financial performance in traditional manufacturing firms.

Suggested Citation

  • Erlend Nybakk & Jan Inge Jenssen, 2012. "Innovation Strategy, Working Climate, And Financial Performance In Traditional Manufacturing Firms: An Empirical Analysis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 1-26.
    • Handle: RePEc:wsi:ijimxx:v:16:y:2012:i:02:n:s1363919611003374
    DOI: 10.1142/S1363919611003374
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1363919611003374
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1363919611003374?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. N/A, 2007. "Fuel for Thought: April – June 2007," Energy & Environment, , vol. 18(6), pages 815-816, November.
    2. Erlend Nybakk, 2012. "Learning Orientation, Innovativeness And Financial Performance In Traditional Manufacturing Firms: A Higher-Order Structural Equation Model," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(05), pages 1-28.
    3. Unknown, 2007. "Indicators June-07," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-3, June.
    4. Edina M. S. Luz & F. W. S. Lima, 2007. "Majority-Vote On Directed Small-World Networks," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 18(08), pages 1251-1261.
    5. W-C Yeh, 2007. "Reply to Jane," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(10), pages 1395-1395, October.
    6. George Cheriyan & K.C. Sharma & J.V.R. Murty & Sanjay Agarwal & Parmesh Shah, 2007. "Rajasthan, India," World Bank Publications - Reports 25019, The World Bank Group.
    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. Gemechu Abdissa & Abebe Ayalew & Csaba Bálint Illés & Anna Dunay, 2021. "Effects of Corporate Entrepreneurship Dimensions on Organizational Performance: Case of Small and Medium Enterprises in Holeta Town, Ethiopia," JOItmC, MDPI, vol. 7(4), pages 1-20, December.
    2. Alina Alecse Stanciu & Iuliana Camelia Stoenica & Florentina Raluca Bilcan, 2017. "Benchmark and Continuous Improvement of Performance," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(4), pages 123-126, December.
    3. Soukaina Zaoui & Safae Ait Hamou-ou-Brahim & Haiwei Zhou & Amina Omrane & Dechun Huang, 2021. "Consumer Purchasing Behaviour Towards Strategic Innovation Management Practices in Morocco During COVID-19 Health Crisis," FIIB Business Review, , vol. 10(2), pages 158-171, June.
    4. Ney Luiz Bellegard & Rodolfo Coelho Prates, 2017. "Determinants Of Proficiency In Underlying Processes Of Technological Innovation Management," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(06), pages 1-38, August.
    5. Sri Supriyati & Udin Udin & Sugeng Wahyudi & Mahfudz Mahfudz, 2019. "Investigating the Relationships Between Organizational Change, Organizational Climate, and Organizational Performance," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(6), pages 88-94, October.
    6. Tatiana Marceda Bach & Luciano Luiz Dalazen & Wesley Vieira da Silva & Alex Antonio Ferraresi & Claudimar Pereira da Veiga, 2019. "Relationship Between Innovation and Performance in Private Companies: Systematic Literature Review," SAGE Open, , vol. 9(2), pages 21582440198, June.
    7. Eric Hansen & Erlend Nybakk, 2018. "Response to the global financial crisis: a follow-up study," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-12, December.
    8. Tebogo Sethibe & Renier Steyn, 2016. "Organizational Climate, Innovation and Performance: A Systematic Review," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 2(2), pages 161-174, July.
    9. Alfranca, Oscar & Voces, Roberto & Herruzo, A. Casimiro & Diaz-Balteiro, Luis, 2014. "Effects of innovation on the European wood industry market structure," Forest Policy and Economics, Elsevier, vol. 40(C), pages 40-47.
    10. Cláudia Ferreira Leitão & Jorge Gomes & Denise Capela dos Santos & Bruno Melo Maia, 2021. "Impact of Leadership on the Relationship Between Innovation and Performance: Portuguese Hotel Sector," International Journal of Tourism and Hospitality Management in the Digital Age (IJTHMDA), IGI Global, vol. 5(2), pages 29-49, July.
    11. Muhammad Anwar & Syed Zulfiqar Ali Shah & Sher Zaman Khan & Muhammad Sualeh Khattak, 2019. "Manager’S Personality And Business Model Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(07), pages 1-27, October.
    12. Zhenzhen Zhao & Damien Renard & Mehdi Elmoukhliss & Christine Balague, 2016. "What Affects Creative Performance In Idea Co-Creation: Competitive, Cooperative Or Coopetitive Climate?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 1-24, May.
    13. Ali Murad Syed & Zahid Riaz & Abdul Waheed, 2016. "Innovation, Firm Performance And Riskiness: Evidence From The Leading Worldwide Innovative Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(07), pages 1-19, October.
    14. Nuno Teixeira & Maria Clara Pires & Paulo Ferreira & Graça P. Carvalho & Rute Santos & Francisco M. Rodrigues & João Dias & João C. Martins & José Jasnau Caeiro, 2020. "The Economic Impact of a New Type of Ripening Chamber in Traditional Cheese Manufacturing," Sustainability, MDPI, vol. 12(16), pages 1-8, August.
    15. Sarra Berraies & Belgacem Bchini, 2019. "Effect Of Leadership Styles On Financial Performance: Mediating Roles Of Exploitative And Exploratory Innovations Case Of Knowledge-Intensive Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(03), pages 1-33, April.

    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. Tina T. He & Wilson X. B. Li & Gordon Y. N. Tang, 2013. "Dividends, Controlling Shareholders And Firm Performance: An Investigation Of Large Firms On The Hong Kong Stock Exchange," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 8(02), pages 1-33.
    2. Leif Denti & Sven Hemlin, 2012. "Leadership And Innovation In Organizations: A Systematic Review Of Factors That Mediate Or Moderate The Relationship," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-20.
    3. Emanuele Bacchiega & Luca Lambertini & Andrea Mantovaini, 2011. "Process And Product Innovation In A Vertically Differentiated Industry," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 209-221.
    4. Tania Bucic & Liem Viet Ngo, 2012. "Examining Drivers Of Collaborative Inbound Open Innovation: Empirical Evidence From Australian Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-24.
    5. Peter Lindelöf, 2011. "Formal Institutional Contexts As Ownership Of Intellectual Property Rights And Their Implications For The Organization Of Commercialization Of Innovations At Universities — Comparative Data From Swede," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 15(05), pages 1069-1092.
    6. Erlend Nybakk, 2012. "Learning Orientation, Innovativeness And Financial Performance In Traditional Manufacturing Firms: A Higher-Order Structural Equation Model," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(05), pages 1-28.
    7. Hiromi Saito & Koichi Sumikura, 2010. "An Empirical Analysis On Absorptive Capacity Based On Linkage With Academia," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(03), pages 491-509.
    8. Emmanuel Mamatzakis & Panos Remoundos, 2012. "What are the Driving Factors Behind the Rise of Spreads and CDS of Eurozone Sovereign Bonds? A Panel VAR Analysis," Global Credit Review (GCR), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 79-94.
    9. X. F. Pan & Aiguo Xu & Guangcai Zhang & Song Jiang, 2007. "Lattice Boltzmann Approach To High-Speed Compressible Flows," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 18(11), pages 1747-1764.
    10. Wen-Bo Du & Xian-Bin Cao & Hao-Ran Zheng & Hong Zhou & Mao-Bin Hu, 2009. "Evolutionary Games In Multi-Agent Systems Of Weighted Social Networks," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 20(05), pages 701-710.
    11. Sameer M. Ikhdair & Ramazan Sever, 2008. "Exact Solutions Of The Modified Kratzer Potential Plus Ring-Shaped Potential In Thed-Dimensional Schrödinger Equation By The Nikiforov–Uvarov Method," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 19(02), pages 221-235.
    12. Desheng Dash Wu & David L. Olson & Luis A. Seco & John Birge, 2011. "Introduction To The Special Issue On "Operational Research And Asia Risk Management"," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 28(01), pages 1-1.
    13. Balázs Vaszkun, 2013. "Managers Can Also Resist Changes — Can We Deal With This? An Exploratory Study From Japan," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 447-493.
    14. Hwee Kwan Chow, 2014. "International Transmission Of Interest Rates And The Open Economy Trilemma In Asia," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(03), pages 1-18.
    15. Herwig Immervoll & Stefano Scarpetta, 2012. "Activation and employment support policies in OECD countries. An overview of current approaches," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-20, December.
    16. Kibeshi Kiyabo & Nsubili Isaga, 2019. "Strategic entrepreneurship, competitive advantage, and SMEs’ performance in the welding industry in Tanzania," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-23, December.
    17. Bordunos, A. & Kosheleva, S., 2016. "High Involvement Work System from organizational and individual perspective," Working Papers 6445, Graduate School of Management, St. Petersburg State University.
    18. Weiss, Gerhard & Hansen, Eric & Ludvig, Alice & Nybakk, Erlend & Toppinen, Anne, 2021. "Innovation governance in the forest sector: Reviewing concepts, trends and gaps," Forest Policy and Economics, Elsevier, vol. 130(C).
    19. Richard PEK & Marcel RIEDL & Vilém JARSKÝ, 2017. "Innovative approaches in forest management - the application of a business model to designing a small-scale forestry strategy," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 63(9), pages 393-400.
    20. Ratnawati & Budi Eko Soetjipto & F. Danardana Murwani & Hari Wahyono, 2018. "The Role of SMEs’ Innovation and Learning Orientation in Mediating the Effect of CSR Programme on SMEs’ Performance and Competitive Advantage," Global Business Review, International Management Institute, vol. 19(3_suppl), pages 21-38, June.

    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:wsi:ijimxx:v:16:y:2012:i:02:n:s1363919611003374. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    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.