The influence of senior executive support informatization on radical innovation performance
| Published date | 13 May 2019 |
| Date | 13 May 2019 |
| Pages | 821-839 |
| DOI | https://doi.org/10.1108/IMDS-06-2018-0228 |
| Author | Chao Li,Shuihua Han,Sameer Kumar,Wei-Xi Feng |
| Subject Matter | Information & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems |
The influence of senior executive
support informatization on radical
innovation performance
Chao Li
School of Management, Xiamen University, Xiamen, China and
School of Economics and Management,
Zhongyuan University of Technology, Zhengzhou, China
Shuihua Han
School of Management, Xiamen University, Xiamen, China
Sameer Kumar
Opus College of Business, University of St Thomas,
Minneapolis, Minnesota, USA, and
Wei-Xi Feng
School of Economics and Management,
Zhongyuan University of Technology, Zhengzhou, China
Abstract
Purpose –The purpose of this paper is to define the conceptualization and measurement of informatization
according to a capability perspective reflected in three aspects: IT managerial capability, IT-enabled
capability and IT infrastructure capability.
Design/methodology/approach –Manufacturing enterprises in China’s Northeast and Pearl River Delta
regions in China were selected to empirically examine, using structural equation modeling, the association
between a firm’s senior executive support informatization and radical innovation performance.
Findings –Results show a significant positive relationship between senior executive support and IT-enabled
capability. However, there are no significant positive influences uncovered between senior executive support
and IT managerial capability and IT infrastructure capability. The authors find significant positive effects of
IT managerial capability, IT-enabled capability and IT infrastructure capability on radical innovation
performance. Lastly, the joint effect of senior executive support and external institutional environment has no
significant influence on informatization.
Originality/value –This study offers improved understanding for enterprises and academia about the
effect of senior executive support informatization on radical innovation performance. It also suggests taking
effective measures to highlight the management level and enterprises’radical innovation performance.
Keywords Structural equation modelling, IT infrastructure capability, External system environment,
IT managerial capability, IT-enabled capability, Radical innovation performance
Paper type Research paper
1. Introduction
Radical innovation is a primary determinant to hold sustainable competitive advantage and
capture a future market for enterprises (Dahlin and Behrens, 2005). It represents disruptive
changes in technology, obviously affects demand of mainstream market, breaks previous
competition pattern and gains continuous competitive advantage of enterprises that utilize
technology to develop differentiated products to better meet key users demand (Chandy and
Tellis, 1998; Dewar and Dutton, 1986; Hill and Rothaermel, 2003). Nearly half of sales and
Industrial Management & Data
Systems
Vol. 119 No. 4, 2019
pp. 821-839
© Emerald PublishingLimited
0263-5577
DOI 10.1108/IMDS-06-2018-0228
Received 4 June 2018
Revised 18 October 2018
21 November 2018
Accepted 8 January 2019
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0263-5577.htm
This study is partially supported by National Natural Science Foundation of China under Grant
No. 71671152, by Young Core Teachers Training Program and Interdisciplinary Team Program in
Zhongyuan University of Technology, China.
821
Radical
innovation
performance
profits from the best innovation enterprises are listed on radical innovation products within
three years (Kahn, 2012). Radical innovation has a profound influence on profit and
sustainable growth of enterprises by creating new products, services and business
depending on novel technology and knowledge (Chatterjee et al., 2015; Un, 2010).
From technological perspective and resource-based view (RBV), we define informatization as
a new productivity oriented by information system. Informatization is viewed one of the most
crucial success factors for radical innovation, it represents a series of radical innovations move
together magnificently (Lyytinen and Rose, 2003). Informatization can maintain low costs,
realize product differentiation, diffuse technology and market informationand increase strategic
flexibility by quickly responding to changes, opportunities and challenges of external
environment, this is equivalent to IT capability that helps enterprises achieve organizational
goals and sense innovation opportunities (Bhatt et al., 2005; Roberts et al., 2016).
Although a lot of research explores and confirms positive significance of radical
innovation from IT driven aspect, in both academia and practice, a challenging issue to
address is “advanced IT can’t avoid the failure of radical innovation”due to innovation
environment and management philosophy (Carlo et al., 2012). To address this issue,
we realize informatization affects radical innovation is a complex phenomenon at technical
or management level. However, both levels ignore attitude, support behavior and
decision-making ability to senior executives who are critical to the success of
informatization and radical innovation (Boonstra, 2013; Lin et al., 2014; Sharma and
Yetton, 2003). Existing research almost focus on the effect of behavior, motivation and
attitude of senior leadership on information technology and firm financial performance,
while lack on the link between senior executive support informatization and radical
innovation performance (Armstrong and Sambamurthy, 1999; Ding et al., 2014; Moynihan,
1990). Previous research cannot provide effective support path systematically to guide
enterprise practice on account of unclear understanding of informatization connotation
which leads to mismatched support strategy made by senior executives (Lim et al., 2013).
Our research concentrates on addressing research gaps from the following four questions:
(1) What are the components of informatization?
(2) What is the specific path for senior executives support informatization?
(3) Whether external institutional environment will have an impact on senior executives
support informatization?
(4) Whether informatization can affect firm radical innovation performance?
The remainder of this study is organized as follows. We revisit related theory of senior
executive support informatization and radical innovation performance to interpret the key
concepts next, propose relevant hypotheses and develop research model. Then we explain
our research methodology, variables and process of scale development and data collection.
We show related results and offer discussion. At last, we summarize research limitations,
future suggestions and contributions.
2. Theoretical background and hypotheses
2.1 Informatization
The informatization framework is assembled from the concep t and measurement of IT
capabilityfor achieving considerable firm performance andsustaining competitive advantage.
It was difficult to address productive paradox until IT-related resources transform into IT
capability that can result in remarkable firm performance (Bharadwaj, 2000). Superior IT
capabilityindeed exhibits superior current andsustained firm performance according to RBV,
no matter how to measure multi-dimensional IT capability (Gómez et al.,2016; Santh anam and
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IMDS
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