IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i13p5288-d378479.html
   My bibliography  Save this article

Organizational Resource and Innovativeness to Sustainable Design Outsourcing Service

Author

Listed:
  • Kunyoung Hong

    (Seoul Business School, Seoul School of Integrated Sciences and Technologies (aSSIST), Seoul 03767, Korea)

  • Boyoung Kim

    (Seoul Business School, Seoul School of Integrated Sciences and Technologies (aSSIST), Seoul 03767, Korea)

Abstract

Design firms have been changing to become innovation consulting agencies, while business companies are improving their use of design innovation capacity for innovative problem-solving approaches. This study aims to identify how the organizational resource components of design firms affect the competitiveness of design outsourcing through the medium of absorptive capacity, innovation capacity, and design innovativeness. To do this, a total of 389 surveys from employees of design firms of seven regions in Korea were collected and analyzed. The analysis results show that tangible and human resource have a significant impact on absorptive capacity and innovation capacity, and intangible resource do the same on absorptive capacity. It was found that intangible resource would not have a significant impact on innovation capacity. This indicates that design firms should also prioritize fostering creative talent and strengthening financial and physical support for organizational activities. In addition, this study confirmed that enhanced absorptive capacity within the organization has a positive effect on the design innovativeness, and that the resource and capacity management of design firms are important to improve design innovativeness and outsourcing competitiveness.

Suggested Citation

  • Kunyoung Hong & Boyoung Kim, 2020. "Organizational Resource and Innovativeness to Sustainable Design Outsourcing Service," Sustainability, MDPI, vol. 12(13), pages 1-16, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:13:p:5288-:d:378479
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/13/5288/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/13/5288/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Boyoung Kim & Hyojin Kim & Youngok Jeon, 2018. "Critical Success Factors of a Design Startup Business," Sustainability, MDPI, vol. 10(9), pages 1-15, August.
    2. Benn Lawson & Danny Samson, 2001. "Developing Innovation Capability In Organisations: A Dynamic Capabilities Approach," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 377-400.
    3. Akbar Zaheer & Geoffrey G. Bell, 2005. "Benefiting from network position: firm capabilities, structural holes, and performance," Strategic Management Journal, Wiley Blackwell, vol. 26(9), pages 809-825, September.
    4. D Minbaeva & T Pedersen & I Björkman & C F Fey & H J Park, 2003. "MNC knowledge transfer, subsidiary absorptive capacity, and HRM," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 586-599, November.
    5. Yam, Richard C. M. & Guan, Jian Cheng & Pun, Kit Fai & Tang, Esther P. Y., 2004. "An audit of technological innovation capabilities in chinese firms: some empirical findings in Beijing, China," Research Policy, Elsevier, vol. 33(8), pages 1123-1140, October.
    6. Saebi, Tina & Foss, Nicolai J., 2015. "Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions," European Management Journal, Elsevier, vol. 33(3), pages 201-213.
    7. Santoro, Gabriele & Vrontis, Demetris & Thrassou, Alkis & Dezi, Luca, 2018. "The Internet of Things: Building a knowledge management system for open innovation and knowledge management capacity," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 347-354.
    8. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    9. Zahra, Shaker A. & Filatotchev, Igor & Wright, Mike, 2009. "How do threshold firms sustain corporate entrepreneurship? The role of boards and absorptive capacity," Journal of Business Venturing, Elsevier, vol. 24(3), pages 248-260, May.
    10. Talke, Katrin & Müller, Sebastian & Wieringa, Jaap E., 2017. "A matter of perspective: Design newness and its performance effects," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 399-413.
    11. Covin, Jeffrey G. & Slevin, Dennis P. & Heeley, Michael B., 2001. "Strategic decision making in an intuitive vs. technocratic mode: structural and environmental considerations," Journal of Business Research, Elsevier, vol. 52(1), pages 51-67, April.
    12. Xie, Xuemei & Zou, Hailiang & Qi, Guoyou, 2018. "Knowledge absorptive capacity and innovation performance in high-tech companies: A multi-mediating analysis," Journal of Business Research, Elsevier, vol. 88(C), pages 289-297.
    13. Pascal Le Masson & Patrick Cogez & Yacine Felk & Benoit Weil, 2012. "Revisiting Absorptive Capacity with a Design Perspective," Post-Print hal-00870353, HAL.
    14. Kim, Sang Jin & Kim, Kyung Hoon & Choi, Jeonghye, 2019. "The Role of Design Innovation in Understanding Purchase Behavior of Augmented Products," Journal of Business Research, Elsevier, vol. 99(C), pages 354-362.
    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. Zhao Junting & Jereco Jims J. Agapito, 2024. "Strategic Business Model Development for Architectural Services: Analyzing Competitor Designs," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(1), pages 1716-1730, January.
    2. Yonghong Cai & Li Wang & Yan Bi & Runjia Tang, 2022. "How Can the Professional Community Influence Teachers’ Work Engagement? The Mediating Role of Teacher Self-Efficacy," Sustainability, MDPI, vol. 14(16), pages 1-16, August.
    3. Yanmin Guan & Na Wang, 2023. "Automatic modelling of networked innovation outsourcing-oriented talent competency in the era of artificial intelligence," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(1), pages 408-414, February.

    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. Dhir, Sanjay & Ongsakul, Viput & Ahmed, Zafar U. & Rajan, Rishabh, 2020. "Integration of knowledge and enhancing competitiveness: A case of acquisition of Zain by Bharti Airtel," Journal of Business Research, Elsevier, vol. 119(C), pages 674-684.
    2. Tarighi, Sina & Shavvalpour, Saeed, 2021. "Technological development of E&P companies in developing countries: An integrative approach to define and prioritize customized elements of technological capability in EOR," Resources Policy, Elsevier, vol. 72(C).
    3. Tirta Mursitama, 2006. "Creating relational rents: The effect of business groups on affiliated firms’ performance in Indonesia," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 537-557, December.
    4. Camisón, César & Forés, Beatriz, 2011. "Knowledge creation and absorptive capacity: The effect of intra-district shared competences," Scandinavian Journal of Management, Elsevier, vol. 27(1), pages 66-86, March.
    5. Mohammed Saad & Vikas Kumar & John Bradford, 2017. "An investigation into the development of the absorptive capacity of manufacturing SMEs," International Journal of Production Research, Taylor & Francis Journals, vol. 55(23), pages 6916-6931, December.
    6. Alves, André Cherubini & Barbieux, Denise & Reichert, Fernanda Maciel & Tello-Gamarra, Jorge & Zawislak, Paulo Antônio, 2017. "Capacidades dinâmicas e de inovação da empresa: Definindo um modelo de avaliação," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 57(3), May.
    7. Seok-Soo Kim, 2020. "Research on the effect factors of technical performance on SMEs by industrial sectors," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(2), pages 1120-1141, December.
    8. Jalal Rajeh Hanaysha & Mohammed Emad Al-Shaikh & Shanmugan Joghee & Haitham M. Alzoubi, 2022. "Impact of Innovation Capabilities on Business Sustainability in Small and Medium Enterprises," FIIB Business Review, , vol. 11(1), pages 67-78, March.
    9. Natalia Ortiz‐de‐Mandojana & Juan Alberto Aragon‐Correa, 2015. "Boards and Sustainability: the Contingent Influence of Director Interlocks on Corporate Environmental Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 24(6), pages 499-517, September.
    10. Olusesan Michael Awoleye & Olugbenga Matthew Ilori & Timothy Oyedepo Oyebisi, 2019. "SOURCES OF INNOVATION CAPABILITY AND PERFORMANCE OF ICT AGGLOMERATED MSMEs IN NIGERIA," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-33, June.
    11. Rok Lee, 2021. "The Effects of Smart Factory Operational Strategies and System Management on the Innovative Performance of Small- and Medium-Sized Manufacturing Firms," Sustainability, MDPI, vol. 13(6), pages 1-17, March.
    12. Kamal Sakhdari & J. Henri Burgers, 2018. "The moderating role of entrepreneurial management in the relationship between absorptive capacity and corporate entrepreneurship: an attention-based view," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 927-950, December.
    13. Magaly Gaviria-Marin & Jorge Matute-Vallejo & Hugo Baier-Fuentes, 2021. "The effect of ICT and higher-order capabilities on the performance of Ibero-American SMEs," Computational and Mathematical Organization Theory, Springer, vol. 27(4), pages 414-450, December.
    14. Gilal, Faheem Gul & Gilal, Naeem Gul & Shahid, Shadma & Gilal, Rukhsana Gul & Shah, Syed Mir Muhammad, 2022. "The role of product design in shaping masstige brand passion: A masstige theory perspective," Journal of Business Research, Elsevier, vol. 152(C), pages 487-504.
    15. Nikiforou, Argyro Iro & Lioukas, Spyros & Voudouris, Irini, 2020. "Network structure and firm-level entrepreneurial behavior: The role of market and technological knowledge networks," Journal of Business Research, Elsevier, vol. 106(C), pages 129-138.
    16. Younès El Manzani & Mohamed Larbi Sidmou & Jean-Jack Cegarra, 2017. "A conceptual framework of the relationship between total quality management, corporate social responsibility, innovation capability, and financial performance," Post-Print hal-03207361, HAL.
    17. Arash Rezazadeh & Niloofar Nobari, 2018. "Antecedents and consequences of cooperative entrepreneurship: a conceptual model and empirical investigation," International Entrepreneurship and Management Journal, Springer, vol. 14(2), pages 479-507, June.
    18. Cheng, Cong & Yang, Monica, 2017. "Enhancing performance of cross-border mergers and acquisitions in developed markets: The role of business ties and technological innovation capability," Journal of Business Research, Elsevier, vol. 81(C), pages 107-117.
    19. Mary Beth Rousseau & Blake D. Mathias & Laura T. Madden & T. Russell Crook, 2016. "Innovation, Firm Performance, And Appropriation: A Meta-Analysis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-29, April.
    20. Kamal Sakhdari & Jahangir Yadollahi Farsi, 2016. "Business partners and corporate entrepreneurship in developing countries," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 15(1), pages 61-77.

    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:gam:jsusta:v:12:y:2020:i:13:p:5288-:d:378479. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.