The Role of Process Maturity on Innovation and Performance of Entrepreneurial Opportunistic Organizations: A Case Study on Nano Firms

Abstract

The Role of Process Maturity on Innovation and Performance of Entrepreneurial Opportunistic Organizations: A Case Study on Nano Firms

Abstract

The present paper aims to study the relations among variables of innovation, process maturity and firm’s performance. Along with this purpose, it first investigates the relationship between innovation and performance and second hypothesizes a positive relationship between process maturity and both innovation and performance. Several empirical studies examine these relations. The results from a questioner which was obtained from individual interviews in 253 firms were analyzed in order to identify the right variables for measurement. Then the causal relations of these variables were defined through Structural equation modeling SEM and AMOS 18. The results show that two variables of process maturity and innovation positively affect the efficiency of business environment. Innovation and performance are also under the effect of process maturity. One of the other results of this paper demonstrates that firm’s age moderates this effect.

Keywords

• Innovation,process maturity,firm’s performance.

References

1. Boer, H., & During, W. E. (2001), “Innovation, what innovation? A comparison between product, process and organisational innovation” International Journal of Technology Management, 22(1), pp. 83-107.
2. Damanpour F, Walter RM, Avellaneda CN. (2009), “Combinative effects of innovation types and organizational performance: a longitudinal study of service organizations” Journal of Management Studies, 46(4), pp. 650–675.
3. Davenport, T. H. (1993), “Need radical innovation and continuous improvement? Integrate process reengineering and TQM” Strategy & Leadership, 21(3), pp. 6-12.
4. Davenport, T. H., & Short, J. E. (2003), “Information technology and business process redesign” Operations management: critical perspectives on business and management, 1, pp. 1-27.
5. Dijkman, R. M., Dumas, M., & Ouyang, C. (2008), “Semantics and analysis of business process models in BPMN” Information and Software Technology, 50(12), pp. 1281-1294.
6. Fraser, P., Farrukh, C., & Gregory, M. (2003), “Managing product development collaborations—a process maturity approach” Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture, 217(11), pp. 1499- 1519.
7. Gorschek, T., Gomes, A., Pettersson, A., & Torkar, R. (2012), “Introduction of a process maturity model for market‐driven product management and requirements engineering” Journal of Software: Evolution and Process, 24(1), pp. 83-113.
8. Harter, D. E., Krishnan, M. S., & Slaughter, S. A. (2000), “Effects of process maturity on quality, cycle time, and effort in software product development” Management Science, 46(4), pp. 451-466.

9. Jiang, J. J., Klein, G., Hwang, H. G., Huang, J., & Hung, S. Y. (2004), “An exploration of the relationship between software development process maturity and project performance” Information & Management, 41(3), pp. 279-288.
10. Jiménez-Jiménez, D., & Sanz-Valle, R. (2011), “Innovation, organizational learning, and performance” Journal of Business Research, 64(4), pp. 408-417.
11. Kearney, C., Hisrich, R., & Roche, F. (2008), “A conceptual model of public sector corporate entrepreneurship” International Entrepreneurship and Management Journal, 4(3), pp. 295-313.
12. Keeley, L., Walters, H., Pikkel, R., & Quinn, B. (2013), Ten Types of Innovation: The Discipline of Building Breakthroughs. Wiley.
13. King, A. W., Fowler, S. W., & Zeithaml, C. P. (2001), “Managing organizational competencies for competitive advantage: The middle-management edge” The Academy of Management Executive, 15(2), pp. 95-106.
14. Li, H., & Atuahene-Gima, K. (2001), Product innovation strategy and the performance of new technology ventures in China” Academy of Management Journal, 44(6), pp. 1123-1134.
15. Lockamy III, A., & McCormack, K. (2004), “The development of a supply chain management process maturity model using the concepts of business process orientation” Supply Chain Management: An International Journal, 9(4), pp. 272-278.
16. Marsteller, J. A., Woodward, P., Underwood, W. S., Hsiao, C. J., & Barr, M. S. (2011), “Design of a quality and performance improvement project for small primary care practices: Reflections on the Center for Practice Innovation” Quality in primary care, 19(1), pp. 49-57.
17. Martins, E. C., & Terblanche, F. (2003), “Building organisational culture that stimulates creativity and innovation” European Journal of Innovation Management, 6(1), pp. 64-74.
18. Menguc, B., & Auh, S. (2010), “Development and return on execution of product innovation capabilities: The role of organizational structure” Industrial marketing management, 39(5), pp. 820-831.
19. Nonaka, I., Byosiere, P., Borucki, C. C., & Konno, N. (1994), “Organizational knowledge creation theory: a first comprehensive test” International Business Review, 3(4), pp. 337-351.
20. Ramasubbu, N., Krishnan, M. S., & Kompalli, P. (2005), “Leveraging global resources: A process maturity framework for managing distributed development” Software, IEEE, 22(3), pp. 80-86.
21. Roberts P. (1999), “Product Innovation, Product–Market Competition And Persistent Profitability In The U.S. Pharmaceutical Industry” Strategic Management Journal, 20, pp. 655–670
22. Rowley, J., Baregheh, A., & Sambrook, S. (2011), “Towards an innovation-type mapping tool” Management Decision, 49(1), pp. 73-86.
23. Segarra-Blasco, A. (2010), “Innovation and productivity in manufacturing and service firms in Catalonia: a regional approach” Economics of Innovation and New Technology, 19(3), pp. 233-258.
24. Simpson Penny M, Siguaw Judy A, Enz Cathy A. (2006), “Innovation orientation outcomes: the good and the bad” Journal of Business Research, 59, pp.1133–41.
25. Škrinjar, R., Bosilj Vukšic´, V., & Indihar Štemberger, M. (2010), “Adoption of business process orientation practices: Slovenian and Croatian survey” Business Systems Research, 1(1-2), pp. 5-19.
26. Thornhill, S. (2006), “Knowledge, innovation and firm performance in high- and low- technology regimes” Journal of Business Venturing, 21(5), pp. 687–703.
27. Tian, X., & Wang, T. (2011), “Tolerance for failure and corporate innovation” Review of Financial Studies, forthcoming.
28. Trkman, P., Ladeira, M. B., De Oliveira, M. P. V., & McCormack, K. (2012), Business Analytics, Process Maturity and Supply Chain Performance. In Business Process Management Workshops (pp. 111-122). Springer Berlin Heidelberg.
29. Urbano, D., & Turró, A. (2013), “Conditioning factors for corporate entrepreneurship: an in (ex) ternal approach” International Entrepreneurship and Management Journal, pp. 1-18.
30. Utterback, J. M., & Abernathy, W. J. (1975), “A dynamic model of process and product innovation” Omega, 3(6), pp. 639-656.
31. York, J. G., & Venkataraman, S. (2010), “The entrepreneur–environment nexus: Uncertainty, innovation, and allocation” Journal of Business Venturing, 25(5), pp. 449-463.