PRIORITIZING INNOVATION FACTORS BY USING ANALYTIC NETWORK PROCESS

The emergence and development of the fourth industrial revolution affects production systems. This new revolution also has an impact on logistics, which has a direct relationship with production. Organizations give importance on innovation, technological change and product differentiation to compete with their rivals. Innovativeness creates better understanding of customer needs and wants, catch up their rivals and become more proactive in seeking the market opportunities for organizations. Therefore, improving logistics services using innovations can help improving strong customer relationships, derive barriers to competition, increase customer loyalty, change costs and conduct market activities more effectively. In this context, the objective of this study is to prioritize the innovation factors in logistics industry using a pairwise comprehensive method named Analytic Network Process (ANP). This model is proposed to define a ranking between selected criteria for innovation based decisions. This methodology demonstrates, which criteria has the most important role in the innovation processes.

___

  • Alegre, J., Chiva, R.(2008). Assessing the impact of organizational learning capability on product innovation performance: An empirical test, Technovation , 28, 315–326.
  • Angeleanu, A. (2015). New Technology Trends and Their Transformative Impact on Logistics and Supply Chain Processes, International Journal of Economic Practices and Theories, Vol. 5, No. 5, 413-419.
  • Arago´n-Correa, J.A. ,Garcı´a-Morales, V.J., Cordo´ n-Pozo, E. (2007). Leadership and organizational learning’s role on innovation and performance: Lessons from Spain ,Industrial Marketing Management, 36 349 – 359.
  • Arora, A., Fosfuri, A., (2003). Licensing the market for technology. J. Econ. Behav. Organ. 52, 277–295.
  • Baark, E., Lau, Antonio, K.W., William, L. and Sharif, N. (2011). Innovation Sources, Capabilities and Competitiveness: Evidence from Hong Kong Firms. Paper presented at the DIME (Dynamics of Institutions & Markets in Europe) Final Conference, 6-8 April, 2011, Maastricht, 1-40.
  • Bayarçelik, E. B., Taşel, F., & Apak, S. (2014). A research on determining innovation factors for SMEs. Procedia-Social and Behavioral Sciences, 150, 202-211.
  • Bellingkrodt, S., and Wallenburg, C.M. (2013). The Role of External Relationships for LSP Innovativeness: A Contingency Approach. Journal of Business Logistics 34 (3):209– 21.
  • Bontis, N., (2001) Assesing Knowledge Assets: A Review of the Models Used to Mesaure Intellectual Capital, International Journal of Management Reviews, 3(1).
  • Börjesson, S., Elmquist, M., Hooge, S., (2014). The challenges of innovation capability building: Learning from longitudinal studies of innovation efforts at Renault and Volvo Cars, Journal of Engineering and Technology Management (31),120–140.
  • Burgelman, R., Maidique, M.A., Wheelwright, S.C., 2004. Strategic Management of Technology and Innovation. McGraw Hill, New York.
  • Busse, C. (2010). A Procedure for Secondary Data Analysis: Innovation by Logistics Service Providers. Journal of Supply "Chain Management 46(4):44–58.
  • Busse, C., Wallenburg, C.M. (2011). Innovation management of logistics service providers Foundations, review, and research agenda, International Journal of Physical Distribution & Logistics Management,(41).2, pp. 187-218.
  • Calantone, R.J., Cavusgil, S.T., Zhao, Y., (2002). Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management 31, 515–524.
  • Chapman, R.L., Soosay, C. and Kandampully, J. (2003). Innovation in logistic services and the new business model: a conceptual framework. International Journal of Physical Distribution & Logistics Management, Vol. 33 No. 7, pp. 630-50.
  • Cichosz M., Goldsby T.J., Knemeyer A.M., Taylor D.F. (2017). Innovation in logistics outsourcing relationship – in the search of customer satisfaction. LogForum 13(2), 209219.
  • Chiesa, V., Coughlan, P., Voss, C.A., (1996). Development of a technical innovation audit. Journal of Product Innovation Management 13, 105–136.
  • Christensen, J.F., 1995. Asset profiles for technological innovation. Research Policy 24, 727– 745
  • Coad, A., Segarra, A., & Teruel, M. (2016). Innovation and firm growth: Does firm age play a role?, Research Policy (45), 387-400.
  • Cobo-Benita, J.R., Rodriguez-Segura, E., Ortiz-Marcos, I., Ballesteros-Sanches, L., (2016). Innovation projects performance: Analyzing the impact of organizational characteristics. Journal of Business Research 69, 1357-1360.
  • Conceicao, P., Heitor, M. V., & Francisco, V. (2003). Infrastructures, incentives, and institutions: Fostering distributed knowledge bases for the learning society. Technological Forecasting & Social Change, (70), 583-617.
  • Covin, J.G., Miles, M.P., (1999). Corporate entrepreneurship and the pursuit of competitive advantage. Entrepreneurship Theory and Practice 23, 47–64. Dai1,
  • J., Cantor, D.E., Montabon, F.L. (2015). How Environmental Management Competitive Pressure Affects a Focal Firm’s Environmental Innovation Activities: A Green Supply Chain Perspective. Journal of Business Logistics, 36(3): 242–259. Daugherty, P.J., Chen, H., and Ferrin, B.G. (2011).Organizational Structure and Logistics Service Innovation.”The International Journal of Logistics Management 22(1):29–5.
  • Daugherty, P.J., Stank, T.P. and Ellinger, A.E. (1998). Leveraging logistics/distribution capabilities: the effect of logistics service on market share. Journal of Business Logistics, Vol. 19 No. 2, pp. 35-5.
  • Evangelista, R., Perani, G., Rapiti, F., Archibugi, D., (1997). Nature and impact of innovation in manufacturing: some evidence from the Italian innovation survey. Research Policy 26, 521–536.
  • Fabrizio, K. R., Poczer, S., Zelner, B.A., (2017). Does innovation policy attract international competition? Evidence from energy storage. Research Policy, 46, 1106-1117
  • Fallah, M.H., Lechler, T.G., (2008). Global Innovation performance: Strategic challenges for multinational corporations. Journal of Engineering and Technology Management, 25, 58-74.
  • Flint, D.J., Larsson, E., and Gammelgaard, B. (2008). Exploring Processes for Customer Value Insights, Supply Chain Learning and Innovation: An International Study. Journal of Business Logistics 29(1):257–81.
  • Flint, D.J., Larsson, E., Gammelgaard, B., and Mentzer, J.T. (2005). Logistics Innovation: A Customer Value-Oriented Social Process. Journal of Business Logistics 26(1):113–48.
  • Flint, D.J., Larsson, E., Gammelgaard, B., Mentzer, J.T., (2005). Logistics Innovation: A Customer Value-Oriented Social Process. Journal of Business Logistics, Vol. 26, No.1, pp.113-147.
  • Grawe, S.,J., Daugherty, P.J., Roat, A.S., (2011). Knowledge Sythesis and Innovative Logistics Processes: Enhancing Operational Flexibility and Performance. Journal of Business Logistics, Vol.32, No.1, pp. 69-80.
  • Guan, J., & Yam, R. C. (2015). Effects of government financial incentives on firms' innovation performance in China: Evidences from Beijing in 1990s. Research Policy, 1(44), 273282.
  • Gunsel, A., Siachou E., Acar, A. Z.(2011) Knowledge Management And Learning Capability To Enhance Organizational Innovativeness, Procedia Social and Behavioral Sciences 24 ,880–888.
  • Han, Y., Lin, D., (2014). Effects of intellectual capitalon innovative performance, The role of knowledge-based dynamic capability. Management Decision, 53(1) 1,pp. 40-56.
  • Hsu, C., Wallace,W.A., (2007). An industrial network flow information integration model for supply chain management and intelligent transportation. Journal Enterprise Information Systems,1, 327-35.
  • Hsu, L.C., Wang, C.H. (2012). Clarifying the effect of intellectual capital on performance: the mediating role of dynamic capability. British Journal of Management, Vol. 23 No. 2, pp. 179-205.
  • Hudson, W.J. (1993), Intellectual Capital: How to Build It, Enhance It, Use It, New York: Wiley.
  • J. Hult, G.T.M., Hurley, R.F., Knight, G.A., (2004). Innovativeness: its antecedents and impact on business performance. Industrial Marketing Management (33), 429–438.
  • Hwang, Y.-S., Hwang, M.-H., & Dong, X. (2015). “The Relationships Among Firm Size, Innovation Type, and Export Performance with Regard to Time Spans”, Emerging Markets Finance & Trade (51), 947-962.
  • Jassawalla, A.R., Sarshittal, H.C., (2002). Cultures that support product-innovation processes, Academy of Management Executive 16 (3), 42–54.
  • Jiebing W, Bin G, Yongjiang S.(2013). Customer knowledge management and IT-enabled business model innovation: A conceptual framework and a case study from China. European Management Journal, 31:359– 372.
  • Kim, Y.K., Lee, K., Park, W.G., Choo, K. (2012). Appropriate intellectual property protection and economic growth in countries at different levels of development. Research Policy, Vol. 41, pp. 358-375.
  • Lin, C.Y, (2008). Determinants of the adoption of technological innovations by logistics service providers in China. International Journal of Technology Management and Sustainable Development, Vol.7, No1. pp. 19-38.
  • Lin, C.-Y. (2007). Determinants of the Adoption of Technological Innovations by Logistics Service Providers in China. International Journal of Technology Management and Sustainable Development 7(1):19–38.
  • Luthans, F.,Youssef, C.M. (2004). Human, social, and now positive psychological capital management: investing in people for competitive advantage. Organizational Dynamics, Vol. 33 No. 2, pp. 143-160.
  • Martín-de-Castro, G., Delgado-Verde, M., López-Sáez, P. and Navas-López, J.E. (2011). Towards ‘an intellectual capital-based view of the firm’: origins and nature. Journal of Business Ethics, Vol. 98 No. 4, pp. 649-662.
  • Maurer, B. (1999). Innovation and investment under financial constraints and product market competition. International Journal of Industrial Organization, 17, 455-476.
  • Media, LLC.Morrar, R. (2014). Innovation in Services: A Literature Review. Technology Innovation Management Review (4), 6-14.
  • Mentzer, J.T., Flint, D.J. and Hult, G.T.M. (2001). Logistics service quality as a segmentcustomized process. Journal of Marketing, Vol. 65 No. 4, pp. 82-104.
  • Mesjasz-Lech, A., (2015). Effects of IT use in improving customer service logistic processes.Procedia Computer Science, 65, pp.961 – 970.
  • Nodari, C. H., Bo, G. D., Dorion, E., Olea, P. M., & Severo, E. A. (2012). Innovation in services: Cases of Brazilian manufacturing industries. African Journal of Business Management, 6 (1), 286-296.
  • OECD. (2005). Oslo Manual: Guidelines for collecting and interpreting innovation data (3rd ed. b.). OECD Publishing.
  • Panayides, Ph. M. and So, M. (2005). Logistics service provider-client relationships. Transportation Research E, Vol. 41, No. 3, pp. 179-200.
  • Patanakul, P. and Pinto J. K. (2014). Examining the roles of government policy on innovation. Journal of High Technology Management Research, Vol. 24, pp. 97-107.
  • Paunov, C. (2012). The global crises and firms' investments in innovation. Research Policy (41), 24-35.
  • Pedrosa, A.,Blazevic, V., Jasmand, C., (2015). Logistics innovation development: a micro-level perspective. International Journal of Physical Distribution & Logistics Management, 45 (4), pp. 313-332.
  • Pellegrino, G., Savona, M., (2017). No money, no honey? Financial versus knowledge and demand constraints on innovation. Research Policy, 46, 510-521.
  • Rajaguru R, Matanda MJ. (2013) Effects of inter-organizational compatibility on supply chain capabilities: Exploring the mediating role of interorganizational information systems (IOIS) integration. Industrial Marketing Management; 42:620-63.
  • Saaty T.L. (1977). A scaling method for priorities in hierarchical structures. Journal of mathematical psychology, 15(3): 234–281. Saaty T.L. (1980). The Analytic Hierarchy Process. New York, McGraw-Hill.
  • Saaty T.L (1990) An exposition of the AHP in reply to the paper “Remarks on the analytic hierarchy process”. Management Science; 36(3).
  • Saaty, T. L. (1996). The analytic network process-decision making with dependence and feedback. Pittsburgh, PA: RWS Publications.
  • Subramaniam, M., Youndt, M.A. (2005). The influence of intellectual capital on the types ofinnovative capabilities. Academy of Management Journal, Vol. 48 No. 3, pp. 450463.
  • Sukarmijana, S., Sapong, O.D., (2014). Importance of Intellectual Property for SMEs; Challenges and Moving Forward. UMK Procedia,1,74 – 81.
  • Sumrit, D., Anuntavoranich, P., (2013). Using DEMATEL Method to Analyze the Causal Relations on Technological Innovation Capability Evaluation Factors in Thai Technology-Based Firms. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, Volume 4 No.2 pp:81-103.
  • Sundbo, J., & Gallouj, F. (1999). Innovation in services in seven European countries. Oslo, Norway: Synthesis Report for EU Comission
  • Tanskanen, T., Holmström, J., Öhman,M., (2015). Generative Mechanisms of the Adoption of Logistics Innovation:The Case of On-site Shops in Construction Supply Chains. Journal of Business Logistics, 36(2): 139–159.
  • Un, C.A., (2010). An empirical multi-level analysis for achieving balance between incremental and radical innovations. Journal of Engineering and Technology Management 27 (1), 1–19.
  • Viederyte, R. (2016). Organizational and Process Innovations in International Logistics Companies: The Relevance and Expected Benefits. Regional Development Studies, No.3 (20), 134-146.
  • Wagner, S.M., and Sutter, R. (2012). A Qualitative Investigation of Innovation Between Third– Party Logistics Providers and Customers. International Journal of Production Economics 140(2):944–58.
  • Wang, C.H., Lu, I.Y. and Chen, C. B. (2008). Evaluating firm technological innovation capability under uncertainty. Technovation, 28(6), 349-363.
  • Wang, Y.-M., Wang, Y.-S., Yang, Y.-S., (2010). Understanding the determinants of RFID adoption in the manufacturing industry.Technological Forecasting & Social Change,77, pp: 803–815.
  • Wang, X., Dass, M., (2017). Building innovation capability: The role of top management innovativeness and relative-exploration orientation. Journal of Business Research, 76, 127-135.
  • Wheelwright, S.C., Clark, K.B., (1992). Revolutionizing Product Development—Quantum Leaps in Speed, Efficiency, and Quality. The Free Press, New York.
  • Whitaker, R., (2007) Validation examples of the Analytic Hierarchy Process and Analytic Network Process. Mathematical and Computer Modelling. Volume 46, Issues 7–8, October 2007, Pages 840–859.
  • Yam, C.M., Guan, J.C., Pun, K.F., Tang, P.Y., (2004). An audit of technological innovation capabilities in Chinese firms: some empirical findings in Beijing, China. Research Policy 33 (8), 1123–1250.
  • Yang, J., (2012).Innovation capability and corporate growth: an empirical investigation in China. Journal of Engineering and Technology Management 29 (1), 34–46.
  • Youndt, M.; Subramaniam, M.; Snell, S. A.(2004). Intellectual capital profiles: An examination of investments and returns. Journal of Management Studies, 41(2), pp. 335-361.
  • Yu, K., Cadeaux, J., Luo, B. N., (2015). Operational flexibility: Review and meta analysis”, International Journal of Production Economics, 169, 190-202.
  • Zhou, K.Z., Wu, F. (2010). Technological Capability, Strategic Flexibility, and Product Innovation. Strategic Management Journal, 31, 547-561.