Research Article
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Factors Impacting on Product and Process Innovation Capability: An Empirical Analysis on Manufacturing Firms in Turkey

Year 2023, Volume: 8 Issue: 2, 348 - 357, 30.12.2023

Alper Sönmez Fazal Rahman Amirzai

Abstract

The purpose of the study is to empirically investigate the factors that impact on both product and process innovation capabilities of the manufacturing firms in Turkey. For this purpose, by using the 2019 World Bank Enterprise Survey (WEBS) database, the factors affecting innovation were analyzed by conducting binary logistic and bivariate probit regression analysis methods. The key findings can be summarized as follows: (i) remarkably, "internal R&D" activities of the firms emerge as a determining force in both product and process innovation activities of firms; (ii) while "Foreign Technology Use" reveals a weak effect on process innovation, it emerges as a key driver for firms' product innovation. This means that the likelihood of firms’ product innovation increases with the use of foreign technology; (iii) "Foreign Ownership" positively affects process innovation activities, according to the bivariate probit regression analysis; (iv) "Human Capital Development" positively impacts on both product and process innovation activities according to the findings of binary logistic regression analysis. The findings of the study reveal the importance of in-house R&D activities and using foreign technology in promoting the innovation activities of Turkish manufacturing firms.

Keywords

Innovation Manufacturing Industry Binary Logistic Regression Bivariate Probit Regression

References

  • Adalikwu, C. (2011). Impact of International and Home-Based Research and Development (R&D) on Innovation Performance. International Journal of Human Sciences, 8(2), 474-498.
  • Adeyeye, A. D., Jegede, O. O., Oluwadare, A. J., & Aremu, F. S. (2016). Micro-Level Determinants of Innovation: Analysis of the Nigerian Manufacturing Sector. Innovation and Development, 6(1), 1-14.
  • Baldwin, J. R., & Johnson, J. (1995). Human Capital Development and Innovation: The Case of Training in Small and Medium-Sized Firms. Statistics Canada Working Paper, 74.
  • Berchicci, L. (2013). Towards an Open R&D System: Internal R&D Investment, External Knowledge Acquisition and Innovative Performance. Research Policy, 42(1), 117-127.
  • Díaz‐Díaz, N. L., Aguiar‐Díaz, I., & De Saá‐Pérez, P. (2008). Impact of Foreign Ownership on Innovation. European Management Review, 5(4), 253-263.
  • Gallié, E. P., & Legros, D. (2012). Firms’ Human Capital, R&D and Innovation: A Study on French Firms. Empirical Economics, 43, 581-596.
  • Genis-Gruber, A., & Öğüt, H. (2014). Environmental Factors Affecting Innovation Strategies of Companies: Customers and Suppliers Effect. Procedia-Social and Behavioral Sciences, 150, 718-725.
  • Gómez, J., Salazar, I., & Vargas, P. (2016). Sources of Information as Determinants of Product and Process Innovation. PLOS ONE, 11(4), 1-15.
  • Gupta, S. M., Güngör, A., Govindan, K., Özceylan, E., Kalaycı, C. B., & Piplani, R. (2020). Responsible & Sustainable Manufacturing. In (Vol. 58, 7181-7182): Taylor & Francis.
  • Hagedoorn, J., & Duysters, G. (2002). External Sources of Innovative Capabilities: The Preferences for Strategic Alliances or Mergers and Acquisitions. Journal of Management Studies, 39(2), 167-188.
  • Kahn, K. B. (2018). Understanding Innovation. Business Horizons, 61(3), 453-460.
  • Kühne, B., Gellynck, X., & Weaver, R. D. (2013). The Influence of Relationship Quality on the Innovation Capacity in Traditional Food Chains. Supply Chain Management: An International Journal, 18(1), 52-65.
  • Liu, X., & White, R. S. (1997). The Relative Contributions of Foreign Technology and Domestic Inputs to Innovation in Chinese Manufacturing Industries. Technovation, 17(3), 119-125.
  • Lukovszki, L., Rideg, A., & Sipos, N. (2021). Resource-Based View of Innovation Activity in SMEs: An Empirical Analysis Based on the Global Competitiveness Project. Competitiveness Review: An International Business Journal, 31(3), 513-541.
  • Ma, L., Zhai, X., Zhong, W., & Zhang, Z. X. (2019). Deploying Human Capital for Innovation: A Study of Multi-Country Manufacturing Firms. International Journal of Production Economics, 208, 241-253.
  • Mahendra, E., Zuhdi, U., & Muyanto, R. (2015). Determinants of Firm Innovation in Indonesia: The Role of Institutions and Access to Finance. Economics and Finance in Indonesia, 61(3), 149-179.
  • Maroof, D. A. (2012). Binary Logistic Regression. In Statistical Methods in Neuropsychology: Common Procedures Made Comprehensible (67-75): Springer.
  • McGuirk, H., Lenihan, H., & Hart, M. (2015). Measuring the Impact of Innovative Human Capital on Small Firms’ Propensity to Innovate. Research Policy, 44(4), 965-976.
  • Memiş, S., & Korucuk, S. (2019). Dematel ve Vikor Bütünleşik Yaklaşımı ile Gıda İşletmelerinde İnovasyon Çeşitlerinin Önceliklendirilmesi ve En İdeal Firma Seçimi. Manas Sosyal Araştırmalar Dergisi, 8(1), 1070-1084.
  • Memiş, S., & Korucuk, S. (2023). Giresun'da Faaliyet Gösteren Çay İşletmelerinde İnovasyonun Önündeki Gizli Engellerin Çok Kriterli Karar Verme Yöntemleriyle Belirlenmesine Yönelik Bir Uygulama. Karadeniz Fen Bilimleri Dergisi, 13(2), 639-651.
  • Neely, A., Filippini, R., Forza, C., Vinelli, A., & Hii, J. (2001). A Framework for Analysing Business Performance, Firm Innovation and Related Contextual Factors: Perceptions of Managers and Policy Makers in Two European Regions. Integrated Manufacturing Systems, 12(2), 114-124.
  • Patanakul, P., & Pinto, J. K. (2014). Examining the Roles of Government Policy on Innovation. The Journal of High Technology Management Research, 25(2), 97-107.
  • Pegkas, P., Staikouras, C., & Tsamadias, C. (2019). Does Research and Development Expenditure Impact Innovation? Evidence from the European Union Countries. Journal of Policy Modeling, 41(5), 1005-1025.
  • Peres, R., Muller, E., & Mahajan, V. (2010). Innovation Diffusion and New Product Growth Models: A Critical Review and Research Directions. International Journal of Research in Marketing, 27(2), 91-106.
  • Seo, H., Chung, Y., & Yoon, H. D. (2017). R&D Cooperation and Unintended Innovation Performance: Role of Appropriability Regimes and Sectoral Characteristics. Technovation, 66, 28-42.
  • Sivak, R., Caplanova, A., & Hudson, J. (2011). The Impact of Governance and Infrastructure on Innovation. Post-Communist Economies, 23(02), 203-217.
  • Sönmez, A., & Pamukçu, M. T. (2013). Foreign Direct Investment and Technology Spillovers in the Turkish Manufacturing Industry. In Industrial Dynamics, Innovation Policy, and Economic Growth Through Technological Advancements (30-51): IGI Global.
  • Topal, B., & Sahin, H. (2018). The Influence of Information Sharing in the Supply Chain Process on Business Performance: An Empirical Study.
  • Tsai, K. H. (2009). Collaborative Networks and Product Innovation Performance: Toward a Contingency Perspective. Research Policy, 38(5), 765-778.
  • Ur Rehman, N. (2016). Innovation Performance of Chilean Firms, A Bivariate Probit Analysis, Journal of Entrepreneurship in Emerging Economies, 8(2), 204-224.
  • Valencia, J. C. N., Valle, R. S., & Jiménez, D. J. (2010). Organizational Culture as Determinant of Product Innovation. European Journal of Innovation Management, 13(4), 466-480.
  • Zhang, G., & Tang, C. (2017). How Could Firm's Internal R&D Collaboration Bring More Innovation? Technological Forecasting and Social Change, 125, 299-308.

Ürün ve Süreç İnovasyon Yeteneğini Etkileyen Faktörler: Türkiye'deki İmalat Firmaları Üzerine Ampirik Bir Analiz

Year 2023, Volume: 8 Issue: 2, 348 - 357, 30.12.2023

Alper Sönmez Fazal Rahman Amirzai

Abstract

Bu çalışmanın amacı Türkiye'deki imalat sanayi firmalarının ürün ve süreç inovasyonu yeteneklerini etkileyen faktörleri ampirik olarak araştırmaktır. Bu amaçla, 2019 yılı Dünya Bankası İşletme Araştırması (WEBS) verileri kullanılarak, binary lojistik ve bivariate probit regresyon analizleri yöntemiyle, inovasyonu etkileyen faktörler analiz edilmiştir. Çalışmanın temel bulguları şu şekilde özetlenebilir: (i) “içsel Ar-Ge” faaliyetleri firmaların hem ürün hem de süreç inovasyonu faaliyetlerinde belirleyici bir güç olarak ortaya çıkmaktadır; (ii) "Yabancı Teknoloji Kullanımı" süreç inovasyonu konusunda zayıf bir etki ortaya koyarken, firmaların ürün inovasyonu için temel bir itici güç olarak ortaya çıkmaktadır. Bu bulgu, firmaların ürün inovasyonu olasılığının yabancı teknoloji kullanımı ile arttığını ortaya koymaktadır; (iii) "Yabancı Sahiplik", bivariate probit regresyon analizi bulgularına göre, süreç inovasyonu faaliyetlerini olumlu olarak etkilemektedir; (iv) "Beşerî Sermaye Gelişimi", binary lojistik regresyon analizi bulgularına göre, ürün ve süreç inovasyonu faaliyetlerini pozitif olarak etkilemektedir. Bulgular, Türk imalat sanayi firmalarının inovasyon faaliyetlerini teşvik etmede kurum içi Ar-Ge faaliyetlerinin ve yabancı teknoloji kullanımının önemini ortaya koymaktadır.

Keywords

İnovasyon İmalat Sanayi Binary Lojistik Regresyon Bivariate Probit Regresyon

References

  • Adalikwu, C. (2011). Impact of International and Home-Based Research and Development (R&D) on Innovation Performance. International Journal of Human Sciences, 8(2), 474-498.
  • Adeyeye, A. D., Jegede, O. O., Oluwadare, A. J., & Aremu, F. S. (2016). Micro-Level Determinants of Innovation: Analysis of the Nigerian Manufacturing Sector. Innovation and Development, 6(1), 1-14.
  • Baldwin, J. R., & Johnson, J. (1995). Human Capital Development and Innovation: The Case of Training in Small and Medium-Sized Firms. Statistics Canada Working Paper, 74.
  • Berchicci, L. (2013). Towards an Open R&D System: Internal R&D Investment, External Knowledge Acquisition and Innovative Performance. Research Policy, 42(1), 117-127.
  • Díaz‐Díaz, N. L., Aguiar‐Díaz, I., & De Saá‐Pérez, P. (2008). Impact of Foreign Ownership on Innovation. European Management Review, 5(4), 253-263.
  • Gallié, E. P., & Legros, D. (2012). Firms’ Human Capital, R&D and Innovation: A Study on French Firms. Empirical Economics, 43, 581-596.
  • Genis-Gruber, A., & Öğüt, H. (2014). Environmental Factors Affecting Innovation Strategies of Companies: Customers and Suppliers Effect. Procedia-Social and Behavioral Sciences, 150, 718-725.
  • Gómez, J., Salazar, I., & Vargas, P. (2016). Sources of Information as Determinants of Product and Process Innovation. PLOS ONE, 11(4), 1-15.
  • Gupta, S. M., Güngör, A., Govindan, K., Özceylan, E., Kalaycı, C. B., & Piplani, R. (2020). Responsible & Sustainable Manufacturing. In (Vol. 58, 7181-7182): Taylor & Francis.
  • Hagedoorn, J., & Duysters, G. (2002). External Sources of Innovative Capabilities: The Preferences for Strategic Alliances or Mergers and Acquisitions. Journal of Management Studies, 39(2), 167-188.
  • Kahn, K. B. (2018). Understanding Innovation. Business Horizons, 61(3), 453-460.
  • Kühne, B., Gellynck, X., & Weaver, R. D. (2013). The Influence of Relationship Quality on the Innovation Capacity in Traditional Food Chains. Supply Chain Management: An International Journal, 18(1), 52-65.
  • Liu, X., & White, R. S. (1997). The Relative Contributions of Foreign Technology and Domestic Inputs to Innovation in Chinese Manufacturing Industries. Technovation, 17(3), 119-125.
  • Lukovszki, L., Rideg, A., & Sipos, N. (2021). Resource-Based View of Innovation Activity in SMEs: An Empirical Analysis Based on the Global Competitiveness Project. Competitiveness Review: An International Business Journal, 31(3), 513-541.
  • Ma, L., Zhai, X., Zhong, W., & Zhang, Z. X. (2019). Deploying Human Capital for Innovation: A Study of Multi-Country Manufacturing Firms. International Journal of Production Economics, 208, 241-253.
  • Mahendra, E., Zuhdi, U., & Muyanto, R. (2015). Determinants of Firm Innovation in Indonesia: The Role of Institutions and Access to Finance. Economics and Finance in Indonesia, 61(3), 149-179.
  • Maroof, D. A. (2012). Binary Logistic Regression. In Statistical Methods in Neuropsychology: Common Procedures Made Comprehensible (67-75): Springer.
  • McGuirk, H., Lenihan, H., & Hart, M. (2015). Measuring the Impact of Innovative Human Capital on Small Firms’ Propensity to Innovate. Research Policy, 44(4), 965-976.
  • Memiş, S., & Korucuk, S. (2019). Dematel ve Vikor Bütünleşik Yaklaşımı ile Gıda İşletmelerinde İnovasyon Çeşitlerinin Önceliklendirilmesi ve En İdeal Firma Seçimi. Manas Sosyal Araştırmalar Dergisi, 8(1), 1070-1084.
  • Memiş, S., & Korucuk, S. (2023). Giresun'da Faaliyet Gösteren Çay İşletmelerinde İnovasyonun Önündeki Gizli Engellerin Çok Kriterli Karar Verme Yöntemleriyle Belirlenmesine Yönelik Bir Uygulama. Karadeniz Fen Bilimleri Dergisi, 13(2), 639-651.
  • Neely, A., Filippini, R., Forza, C., Vinelli, A., & Hii, J. (2001). A Framework for Analysing Business Performance, Firm Innovation and Related Contextual Factors: Perceptions of Managers and Policy Makers in Two European Regions. Integrated Manufacturing Systems, 12(2), 114-124.
  • Patanakul, P., & Pinto, J. K. (2014). Examining the Roles of Government Policy on Innovation. The Journal of High Technology Management Research, 25(2), 97-107.
  • Pegkas, P., Staikouras, C., & Tsamadias, C. (2019). Does Research and Development Expenditure Impact Innovation? Evidence from the European Union Countries. Journal of Policy Modeling, 41(5), 1005-1025.
  • Peres, R., Muller, E., & Mahajan, V. (2010). Innovation Diffusion and New Product Growth Models: A Critical Review and Research Directions. International Journal of Research in Marketing, 27(2), 91-106.
  • Seo, H., Chung, Y., & Yoon, H. D. (2017). R&D Cooperation and Unintended Innovation Performance: Role of Appropriability Regimes and Sectoral Characteristics. Technovation, 66, 28-42.
  • Sivak, R., Caplanova, A., & Hudson, J. (2011). The Impact of Governance and Infrastructure on Innovation. Post-Communist Economies, 23(02), 203-217.
  • Sönmez, A., & Pamukçu, M. T. (2013). Foreign Direct Investment and Technology Spillovers in the Turkish Manufacturing Industry. In Industrial Dynamics, Innovation Policy, and Economic Growth Through Technological Advancements (30-51): IGI Global.
  • Topal, B., & Sahin, H. (2018). The Influence of Information Sharing in the Supply Chain Process on Business Performance: An Empirical Study.
  • Tsai, K. H. (2009). Collaborative Networks and Product Innovation Performance: Toward a Contingency Perspective. Research Policy, 38(5), 765-778.
  • Ur Rehman, N. (2016). Innovation Performance of Chilean Firms, A Bivariate Probit Analysis, Journal of Entrepreneurship in Emerging Economies, 8(2), 204-224.
  • Valencia, J. C. N., Valle, R. S., & Jiménez, D. J. (2010). Organizational Culture as Determinant of Product Innovation. European Journal of Innovation Management, 13(4), 466-480.
  • Zhang, G., & Tang, C. (2017). How Could Firm's Internal R&D Collaboration Bring More Innovation? Technological Forecasting and Social Change, 125, 299-308.
There are 32 citations in total.

Details

Primary Language English
Subjects Microeconomics (Other)
Journal Section Research Article
Authors

Alper Sönmez 0000-0001-5476-7627

Fazal Rahman Amirzai 0000-0002-5389-2378

Early Pub Date October 23, 2023
Publication Date December 30, 2023
Published in Issue Year 2023 Volume: 8 Issue: 2

Cite

APA Sönmez, A., & Amirzai, F. R. (2023). Factors Impacting on Product and Process Innovation Capability: An Empirical Analysis on Manufacturing Firms in Turkey. JOEEP: Journal of Emerging Economies and Policy, 8(2), 348-357.
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