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Developing Dynamic Innovative Capabilities: The Growing Role of Innovation and Learning in the Development of Organisations and Skills in Developed and Emerging Nations of Europe

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  • Csaba Makó
  • Brian Mitchell
  • Miklós Illéssy

Abstract

The concepts of ‘high performance working system' (HPWS) and lean production represent the theoretical and methodological foundations of this article. We make a distinction between three theoretical strands of the HPWS and the lean production approaches, namely: ( i ) the diffusion of the Japanese-style management and organisational practices both in the US and in the Europe (Aoki, 1990; Ramsay, Scholarios and Harley, 2000; Wood, 1999); ( ii ) the approach developed by advocates of the sociology of work, which deal with the learning/innovation capabilities of new forms of organisation of work (Makó, 2005; Valeyre et al., 2009); and ( iii ) the various types knowledge and learning process and their relations with the innovation capabilities of the firm (Lam, 2005; Makó, Illéssy and Csizmadia, 2012). We develop our arguments in both spatial and temporal contexts. A micro-level analysis accompanying our macro-level enquiry enables us to illustrate the key factors driving or impeding innovation and learning at both country- and firm-specific scenarios. We carry out international comparative analysis using both employer- and employee-focused surveys to demonstrate the diffusion and outcomes of workplace innovation in knowledge-based (information and communication technology [ICT] and business services) firms. We present the results of the various waves of the employers-oriented community innovation surveys (CIS) with special focus on the periods of ‘pre' and ‘after' financial crises and the economic downturn. We also draw on some of the empirical lessons on the innovation/learning capabilities of the work-organisations based on the European working conditions surveys (EWCS) and the views of employees. Finally, we select the fast-growing knowledge intensive business service (KIBS) sector to illustrate the key role of workplace/organisational innovations and their drivers in two selected post-social countries: Hungary and Slovakia. The aggregated country-level data do not help us to understand the drivers and enablers of innovation. We contend that sector-focused analysis may help us to better understand the roles of these factors in the overall innovation performance of each country. For the purpose of illustration, the diffusion of organisational innovations and company knowledge development practices were analysed in the Hungarian and Slovak KIBS sector. Slovak firms had a leading position compared to the Hungarian firms implementing more radical forms of organisational innovations which were accompanied with more robust learning practices. Drivers explaining this variety were the degree of countries' involvement (embedding) in the internationalisation of the service activities and the development of networking (company group membership) process.

Suggested Citation

  • Csaba Makó & Brian Mitchell & Miklós Illéssy, 2015. "Developing Dynamic Innovative Capabilities: The Growing Role of Innovation and Learning in the Development of Organisations and Skills in Developed and Emerging Nations of Europe," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 1(1), pages 18-38, January.
  • Handle: RePEc:sae:jouent:v:1:y:2015:i:1:p:18-38
    DOI: 10.1177/2393957514554983
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    References listed on IDEAS

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    1. Anthony Arundel & Edward Lorenz & Bengt-Åke Lundvall & Antoin Valeyre, 2006. "The Organization of Work and Innovative Performance A comparison of the EU-15," DRUID Working Papers 06-14, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    2. Masahiko Aoki, 2013. "Horizontal vs. Vertical Information Structure of the Firm," Chapters, in: Comparative Institutional Analysis, chapter 5, pages 57-58, Edward Elgar Publishing.
    3. Edward Lorenz & Antoine Valeyre & Damien Cartron & Peter Csizmandi & Michel Gollac & Miklos Illessy & Csaba Mako, 2009. "Working Conditions in the European Union: Work Organisation," Post-Print halshs-00726892, HAL.
    4. Harvie Ramsay & Dora Scholarios & Bill Harley, 2000. "Employees and High‐Performance Work Systems: Testing inside the Black Box," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 501-531, December.
    5. Makó, Csaba & Csizmadia, Péter & Illéssy, Miklós & Iwasaki, Ichiro & Szanyi, Miklós, 2011. "Organizational Innovation and Knowledge Use Practice: Cross-Country Comparison," Discussion Paper Series b38, Institute of Economic Research, Hitotsubashi University.
    6. Carlota Perez, 2012. "Innovation systems and policy: not only for the rich?," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 42, TUT Ragnar Nurkse Department of Innovation and Governance.
    7. Reinhilde Veugelers, 2012. "New ICT sectors- Platforms for European growth?," Policy Contributions 745, Bruegel.
    8. Stephen Wood, 1999. "Getting the Measure of the Transformed High-Performance Organization," British Journal of Industrial Relations, London School of Economics, vol. 37(3), pages 391-417, September.
    9. Csaba Makó & Miklós Illéssy & Péter Csizmadia, 2012. "Declining Innovation Performance of the Hungarian Economy: Special Focus on Organizational Innovation. The Example of the European Community Innovation Survey (CIS)," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 8(1), pages 116-137.
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    2. Samuel Godadaw Ayinaddis, 2023. "The effect of innovation orientation on firm performance: evidence from micro and small manufacturing firms in selected towns of Awi Zone, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-19, December.

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