Advancing healthcare innovation involves deep uncertainty for the engaged stakeholders. We present an inductive study on business venture sensemaking and its role in the shaping of an early-stage healthcare innovation. We address the understudied phenomenon through the context of personalised medicine. We analyse qualitative data that comprises 23 semi-structured interviews conducted with key organisational stakeholders in Finland involved in personalised medicine including business ventures, the public sector and academia. Our results show that stakeholders involved in personalised medicine engage in multistakeholder dialogue through prospective sensemaking. This sensemaking includes three antenarratives: 1) the anticipation of value prospects, 2) the integration for value co-creation, and 3) institutionalisation of value expectations. We find that venture participation in the early stages of innovation is constrained by the academic and public sector stakeholders' sensemaking, especially during the construction of frameworks and associated understandings. We illuminate the dynamics of prospective sensemaking and multistakeholder interests and provide insights into the required collaborative efforts to navigate ambiguity, complexity and uncertainty. This study contributes to healthcare innovation literature through the provision of an increased understanding about future value creation during early-stage healthcare innovation, viewed as an incremental process towards the future through collaborative multistakeholder dialogue. We provide a framework for complex multistakeholder dynamics in early-stage healthcare innovation.
While much of the research on social innovation in developing contexts focuses on the process and how it creates value, less is known about how social innovators navigate paradoxes arising from institutional and socio-cultural conditions to empower communities and drive change. This article seeks to reshape understanding of social innovation processes by utilising the social-symbolic work theory to demonstrate how social innovation occurs at the intersection of international development agendas and local development needs. To address the research question, we draw on a qualitative research method focusing on a case study of the 'MSI Ladies' initiative, a programme developed by the global NGO MSI Reproductive Choices to train and support community-based midwives and nurses - locally known as the 'ladies' - in delivering crucial sexual and reproductive healthcare across remote regions. We theorise these actors as 'social-symbolic social innovators' who overcome challenges to empower underprivileged women in west/central Africa and southeast Asia to access services. Our study highlights the crucial role of these community midwives, acting as either 'boundary spanners' or 'social innovators' in overcoming institutional paradoxes and co-creating social-symbolic work through their shared identity, agency and goals. The study further suggests that state actors can play a constructive role in enabling social-symbolic social innovation by legitimising and supporting locally embedded intermediaries who translate between institutional layers.
We investigate the role of process and marketing innovation in wartime disruptions faced by small and medium-sized enterprises (SMEs). Using survey data from 766 Israeli SMEs affected by the 2023 armed conflict, we examine how firm-specific characteristics and external constraints are associated with supply-side and demand-side disruptions across two early phases: the immediate period following conflict onset and the subsequent intermediate period. Hierarchical regression models assess the contribution of business characteristics, geographic exposure, and wartime constraints, and examine whether different innovation types moderate these relationships. The findings show that the correlates of disruption vary across phases and outcomes. In the immediate period, proximity to conflict zones and business size are associated with both supply and demand decline, while employee and management absenteeism is especially associated with demand decline. In the intermediate period, logistical difficulties, financing and credit constraints, and locality risk become more salient, particularly for supply-side disruption. Process innovation is associated with weaker supply disruption in this later phase, especially among larger SMEs, whereas marketing innovation shows limited evidence of moderating demand decline. These findings suggest that innovation is not uniformly associated with resilience but operates in a mechanism-specific and context-dependent manner during armed conflict. By distinguishing between innovation types and early wartime phases, the study contributes to the resilience literature and offers implications for policymakers and SME managers seeking targeted responses to wartime disruption.
Patents are central to open innovation because they help companies protect and exchange knowledge. On one hand, patents can strengthen appropriability by granting exclusion rights that deter imitation, improve bargaining power, and support value capture. On the other hand, patents provide a foundation for licensing, technology transfer, and ecosystem building. This trade-off is especially acute in mission-oriented, technology-based sectors such as cultivated meat, where timely progress on complex technological challenges is critical to advancing urgent societal goals. Yet, existing patent governance models remain largely anchored in private value-capture and offer limited guidance on how prosocial commitments can be operationalized through patents without undermining investment incentives. This underscores the need to explore prosocial governance logics in patent management. Drawing on interviews and archival data, this study examines how patents are strategically governed to balance value capture with broader societal outcomes. We identify four emerging hybrid approaches to managing patents - Patent Salvaging, Altruistic Patent Sharing, Sharing Close Failures, and Benevolent Patent Extensions - that vary by degree of openness (closed, selective, open) and how benefits are distributed (industry-wide or for private stakeholders). By investigating the incentive logics and boundary conditions that make each approach viable, we extend open innovation and patent management research in mission-oriented sectors. We also provide practical guidance for companies and policymakers designing patent strategies that support both private returns and collective impact.
Innovation is widely recognized as a driver for sustained organizational performance and long-term competitiveness. However, the growing dominance of the financial logic creates a fundamental tension by prioritizing short-term gains over long-term productive investments. This dynamic is particularly pronounced in industries that develop Complex Products and Systems (CoPS), where innovation cycles are long, capital intensity is high and the risks associated with technological development are substantial. We investigate the non-linear impact of corporate financialization on innovation performance (incremental and radical) and its subsequent effect on firm economic outcomes within this critical industrial context. Using an econometric approach based on dynamic panel data from 295 global Aerospace and Defense (A&D) companies between 2003 and 2022, our results, reveal a nonlinear (inverted U-shaped) relationship between financialization and innovation performance. The findings indicate that moderate levels of financialization may support innovative activity by enhancing liquidity and strengthening governance discipline. However, once financialization surpasses a critical threshold, its effects become restrictive, significantly constraining innovation. This negative impact is particularly pronounced for radical innovation, which depends on patient capital and longer investment horizons compared to incremental improvements. We further demonstrate that these shifts in innovative capacity translate into measurable changes in firms' broader economic performance. Taken together, these results carry important implications for corporate governance, capital allocation strategies, and policy design in capital-intensive, technology-driven industries.
Open innovation has increasingly been recognised as a critical driver of organisational performance, enabling firms to access external knowledge, share risks, and leverage complementary resources. At the same time, increasing thought has been devoted to the role that open innovation may play in advancing sustainability, particularly in response to the pressing environmental and societal grand challenges we are currently facing. Given the relevance of this topic, this editorial presents a comprehensive examination of how the joint consideration of open innovation and sustainability can lead to superior organisational performance and benefit society as a whole. After the description of the current state of knowledge, categorized into four main research streams, the manuscript summarizes the main findings of the papers published in this issue. The eight articles explore this intersection between open innovation and sustainability through a variety of theoretical approaches and methodological designs, highlighting both the opportunities and challenges of leveraging open innovation for environmental, social, and economic sustainability, while underscoring the contingent nature of such benefits. We conclude this editorial by outlining future research directions worth investigating regarding open innovation and sustainability. Overall, we contribute to the debate regarding open innovation and sustainability in the digital age by offering an integrated, empirically grounded view of how openness contributes to the creation of environmental, social, and economic value.
This study examines the complex relationships between female transformational leadership, intellectual capital, and innovation. It addresses a gap in the existing literature by focusing on the specific contributions of female leaders to intellectual capital and innovative outcomes. A structured questionnaire was distributed to participants via Prolific's online platform over four weeks in April and May 2023. Out of 878 submissions, 492 were from participants with female supervisors and 354 from those with male supervisors. The conceptual model was evaluated using the SPSS PROCESS macro (Model 4 - simple mediation model). The findings reveal that while female transformational leadership indirectly boosts incremental innovation through intellectual capital, it has both direct and indirect effects on radical innovation. Intellectual capital acts as a central mediator, translating leadership qualities into innovative practices and organizational value creation. Overall, the study offers new insights into the strategic importance of gender diversity in leadership roles. By highlighting the distinctive abilities of female leaders to foster inclusive, trust-based, and collaborative environments, the research provides meaningful theoretical contributions and practical implications for organizations aiming to enhance innovation through effective leadership and sustained intellectual capital development. These results inform policy makers and support ongoing debates on equitable leadership representation worldwide today.
Research on innovation often relies on terms such as radical, disruptive, or incremental to distinguish between different types of innovations. Yet these terms are frequently used as synonyms, and their divergent definitions make consistent empirical operationalisation difficult. Drawing on systematic coding of more than 500 scientific definitions, this study provides a quantitative assessment of the conceptual overlaps and distinctive features of six widely used innovation labels. Using a two-step coding process - open coding of definitional elements followed by dimensional-axial coding - we identify 350 unique definitional attributes, grouped into requirements, features, and effects. Our findings show that the commonly used dimensions of novelty and impact mainly distinguish 'ordinary' from 'exceptional' innovations, but do not suffice to differentiate within the latter group. Substantial definitional overlap exists, particularly in the requirements associated with different innovation types, whereas clearer differences emerge in their features and effects. Two qualitative dimensions enable sharper differentiation: (1) whether novelty relates to invention-oriented, knowledge-based changes or to market- and diffusion-oriented innovation outcomes; and (2) whether effects are competence-enhancing or competence-destroying. These distinctions clarify why labels such as radical, discontinuous, and disruptive innovation are often conflated, and they offer researchers and practitioners a more systematic foundation for concept choice and empirical measurement. Overall, the analysis highlights the complexity and context dependence of innovation terminology and calls for more precise and transparent use of common labels in theoretical and empirical research.
This paper responds to an ongoing dialogue amongst policy makers and academics regarding how an urban innovation district can act as a cauldron and catalyser of innovative activities and drive urban regeneration and economic growth. A systematic review of the literature on district creation and thematic analysis is conducted on peer-reviewed articles in the business and management discipline, identifying 64 of the most relevant publications in the field and the topics of interest. A literature classification framework is developed, focusing on how urban innovation districts are conceptually framed and methodologically studied, with particular attention to the strategies and theoretical foundations that inform their development. The literature is classified into three major categories based on the main focus of each article: 'Policy', 'Place' and key 'Actors' who drive the development of a district. From the analysis, it is argued that relational proximity, local interaction and synergistic relationships are essential components in enhancing knowledge spillover and innovation creation in urban innovation districts. However, relatively few articles are published on the interactions between key Actors, and the dynamics underlying these interactions. Our main contributions are the development of an inductively derived framework that organises the literature into three categories and highlights dominant conceptual and methodological patterns; and the identification of prominent research gaps across these categories, accompanied by methodological and implementation-oriented suggestions to inform future scholarly and practical work.
Research on innovation typically emphasizes resources and capabilities while overlooking the core role of innovation capacity. We investigate how firms' innovation capacity translates into innovation and competitive performance, and whether product and process objectives shape these links. Using survey data from 238 indigenous Turkish firms and multinational subsidiaries and estimating a structural-equation model, we find that (1) innovation capacity strongly and positively predicts innovation performance; (2) innovation performance, in turn, enhances competitive performance; and (3) innovation performance partially mediates the effect of innovation capacity on competitive performance. To identify boundary conditions, we test whether strategic objectives condition these relationships. Product objectives, i.e., expanding product range, entering new markets, and increasing market share, significantly strengthen the link between innovation capacity and innovation performance , whereas process objectives aimed at efficiency gains do not materially alter that relationship. Robustness checks, including confirmatory factor analysis, slope and Johnson-Neyman probes of moderation, and bias-corrected bootstrapping of indirect effects, support these conclusions. This study foregrounds innovation capacity by modeling both mediation and moderation and clarifies when and how firms convert innovation investments into market-relevant outcomes in an emerging-economy context. Managerially, the results advise building and deliberately steering innovation capacity, aligning it with explicit product-oriented goals, and tracking innovation outputs as the conduit to superior competitive performance. Conceptually, the findings integrate dynamic capabilities and goal-setting perspectives, highlight objective-driven boundary conditions, and invite further longitudinal work on capacity-performance time lags and cross-national generalizability.
There is a substantial body of research examining the strategic initiatives of foreign-owned research and development (R&D) subsidiaries, the penetration of global R&D strategies originating from headquarters, and cross-border information-sharing mechanisms about R&D performance outcomes. However, few studies have quantitatively analysed the relationships among these variables or assessed how each variable affects subsidiary R&D performance. This study develops a performance model for foreign-owned R&D subsidiaries by focusing on three key aspects. First, it quantitatively models the interactions among variables that have rarely been examined together in prior research. Second, it applies this model to Japan - a host country with distinctive technological and institutional characteristics that are often underrepresented in the literature. Third, it challenges conventional assumptions by deviating from the classical integration - responsiveness framework and re-evaluating the presumed benefits of cross-border information sharing. Findings from structural equation modelling suggest that proactive subsidiary R&D initiatives and unique strategies, particularly those involving high R&D initiatives and low penetration of headquarters strategies, are positively associated with R&D performance. In contrast, in multinational corporations, centralised R&D structures and globally standardised strategies may hurt subsidiary performance. Theoretical implications of the study suggest that cross-border information-sharing models between headquarters and subsidiaries can negatively affect R&D performance, highlighting the need to explore alternative frameworks.
Many studies examine the elements influencing the implementation of circular economy (CE) initiatives in different contexts. Among these elements, the open innovation (OI) paradigm is gaining attention as a potential enabler of specific CE initiatives. In particular, inter-organisational collaboration - a typical form of OI - is often discussed as an enabler of CE initiatives for large enterprises. Remarkably, very few studies deal with CE-related inter-organisational collaborations in the context of small and medium-sized enterprises (SMEs). Particularly obscure are the factors that trigger and influence CE-related inter-organisational collaborations of SMEs. This paper addresses this gap in knowledge by leveraging 21 semi-structured interviews with SME managers and founders. A thematic analysis based on a three-step coding approach - open, axial and selective coding - led to the identification and examination of drivers, enabling factors and challenges for CE-related inter-organisational collaborations of SMEs. Leveraging the institutional theory in the analysis, we identified relevant drivers for CE-related inter-organisational collaborations, including normative forces, formal and informal coercive forces, access to external resources, and providing skills and capabilities. The enabling factors include trust, clear roles and responsibilities, geographical proximity and CE commitment. The challenges identified are the lack of financial resources, different goals among partners, lack of early involvement, regulation and lack of proficiency in CE. This study contributes to the growing body of knowledge about the relationship between OI and CE and triggers future research opportunities about this relationship.
Integrating design and technological innovations throughout the new product development process is essential for creating market-successful products. This study investigates how firms' capability to effectively combine design and technology-termed design-engineering capability-affects financial performance and moderates the link between innovation activity and performance. Drawing on patent data for 1,659 US-headquartered public firms from 1980 to 2015, we identify design engineers as inventors contributing to both design and utility patents, capturing their role as integrators of aesthetic, functional, and market considerations. Using panel generalised least squares regressions, our results confirm that design-engineering capability not only directly enhances financial performance but also strengthens the positive impact of innovation activity. Firms with higher shares of design engineers achieve greater returns from their innovation efforts, while those with lower integration capabilities may fail to translate technological advances into market success. These findings underscore the strategic value of cross-disciplinary expertise and the need for organiations to foster collaboration between design and engineering functions. By highlighting the performance benefits of design-technology integration, this study contributes to research on innovation management, human capital, and the resource-based view of the firm.
Prior research predominantly associates female directorship with conservative risk-taking behaviour, arguing that female directors impose stricter monitoring and enhanced oversight, leading to lower corporate risk-taking and reduced innovation investments. However, this study challenges that perspective by demonstrating that female representation on the board positively influences firm innovativeness, particularly in high-risk environments. Using a panel dataset of U.S. publicly traded firms, we find a significant positive relationship between female representation on boards and corporate innovation, measured by R&D intensity and accumulated knowledge capital. Contrary to existing literature emphasising risk aversion among female directors, our findings suggest that female directors alleviate managerial career concerns, encouraging executives to pursue long-term R&D investments even under uncertain conditions. This study extends career concerns theory by showing that female directors mitigate managerial myopia and foster an environment tolerant of failure, allowing for strategic risk-taking in innovation. It also contributes to resource dependence theory by demonstrating that female directors enhance access to diverse perspectives and external knowledge networks, driving innovation outcomes. These findings have important governance and policy implications, emphasising the need for greater female representation on corporate boards to align strategic decision-making with sustainable innovation goals, especially in a high-stakes environment that may trigger managerial myopia.
Innovation is at the heart of modern working life in terms of both sustainability challenges and competitiveness. Knowledge - essential for innovations - in organisations is owned by different actors and embedded in their contexts and daily practices. To use this knowledge in innovation processes, it needs to be shared and expanded through learning practices at work. Literature still offers limited understanding of knowledge expansion and authentic learning practices in everyday innovation development. This study used a qualitative content analysis to draw on interview data from 31 participants, working in the high-technology company in Finland, to construct a model and description of innovation as a continuous process, viewed through the lens of knowledge expansion and learning practices. The findings of this study reveal that knowledge is at the same time a prerequisite for and the result of innovation expanded through specific collective learning practices of everyday work: participating, learning by doing and implementation. The knowledge built up through these practices became visible in decisions and a shared vision, in different raw versions and sketches, and in prototypes, pilots and final innovations. Findings are discussed considering prior research, with suggestions for future studies.
Generational platform innovations prompt complementors to adapt their product development strategies. This paper examines how the speed of response to such platform changes affects new product quality and how this relationship is shaped by the complementor's prior experience. Adopting a contingency perspective on the strategy-by-doing literature, we differentiate between depth of experience (repeated NPD experience with the same platform generation) and breadth of experience (accumulation of NPD experience across different generations), and analyse their interplay with the radicalness of the platform innovation. Using panel data from 1,014 PC video games released by 378 developers between 1995 and 2014 in response to DirectX platform generations and updates, we find that faster responses lead to higher product quality for complementors with greater depth of experience in incremental platform innovation contexts. In contrast, for radical platform changes, faster responses are harmful for complementors with a greater breadth of experience, suggesting that translating and integrating diverse platform knowledge into effective responses requires more time. Our findings contribute to research on platform evolution and strategy-by-doing by clarifying when faster technology responses help (or hinder) product performance in generational platform contexts.
Platform ecosystems, like GitHub and the Android Community, foster non-linear innovation by aggregating multiple complementor groups and supporting their collective actions. In turn, this generates systemic value. In this context, the ecosystem-as-structure framework fosters a collectivist view rooted in system governance. However, what is often undersold is that this perspective overlooks innovation models at the individual level while also failing to explore the diverse roles of complementors. Hence, through an fsQCA analysis of 83 complementors, we present a configurational view of how the complementors in platform ecosystems self-construct innovation models along with how those models contribute to collective action and its role-based dynamics. From this analysis, we identified three key roles and their corresponding innovation models, each of which drives collective action. First, individualists drive radical innovation in decoupled relationships. Second, collectivists drive incremental innovation in decoupled relationships. And third, instrumentalists orchestrate dual innovation. Moreover, when complementors lack a clear identity, they tend to obstruct collective action. Thus, this paper makes a significant contribution to the literature on the ecosystem-as-structure framework and the role-based dynamics of platform ecosystems by highlighting how complementors construct innovation models based on their unique roles. As a practical implication, our results guide complementors to design their role-based dynamics within the ecosystem.
