Internet of things capability and alliance

Abstract

Purpose – The purpose of this paper is to examine the role of capability and alliance arising from the internet of things (IoT), specifically in the relationships between strategic orientations (entrepreneurial and market foci) with product and process innovations. In addition, it investigates the direct relationship between IoT capability and alliance. Improving these relationships assist in ensuring that new knowledge from the IoT can be translated into tangible business innovations that contribute to economic development. Design/methodology/approach – Data from 207 new high-technology IoT ventures in China were obtained after three-wave mailing (i.e. two reminders). Following a rigorous process to purify and validate the measurement scale items, the study used structural equation modeling to test the conceptual model. Findings – Findings demonstrate that an IoT capability only enhances product innovation, however, with the addition and support from IoT alliance, both product and process innovation can be achieved in new high-tech IoT ventures. This nuanced insight suggests that new high-tech IoT ventures should focus on building their IoT capability, and at the same time, develop IoT alliances with value chain partners in order to fully take advantage of IoT and gain a better position to formulate more novel offerings. Originality/value – The study is first to contribute with a much needed framework of IoT and entrepreneurship by examining the role of IoT capability further in the relationships between: entrepreneurial orientation and market orientation with product and process innovations arising from IoT; and the role of IoT alliance (interfirm relations, partnerships, etc.) on the relationship above.

Intellectual capital, entrepreneurial orientation, and technical innovation in small and medium‐sized enterprises

“…In turn, all EO dimensions were found to significantly and positively affect TI, which is in line with the extant literature (e.g., Ergün et al, 2004;Dess & Lumpkin, 2005;Rauch et al, 2009;Vora et al, 2012;Ejdys, 2016;Yu et al, 2016). Essentially, EO refers to a behavior that is aimed at focusing on identifying, creating, seizing, and exploiting unique business opportunities, through capitalizing on enhanced knowledge and experience (Dess & Lumpkin, 2005; Simsek & Heavey, 2011).…”

“…A number of studies have indicated that firms, which adopt an EO, have higher levels of innovation compared with those firms that do not exhibit strong EO (Covin & Slevin, 1989;Hult, Hurley, & Knight, 2004;Rauch et al, 2009;Wiklund & Shepherd, 2003). Yu, Nguyen, and Chen (2016), for example, have shown how high-tech firms that apply EO have witnessed positive influences on their product and process innovation performance. The behavior of entrepreneurial firms is reinforced by five dimensions: autonomy, risk taking, proactiveness, innovativeness, and competitive aggressiveness (Lumpkin & Dess, 1996;Jarzabkowski & Wilson, 2002;Dess & Lumpkin, 2005;Whittington, 2007;Saha, Kumar, Dutta, & Dutta, 2017).…”

Unlocking value from machines: business models and the industrial internet of things

“…At the same time, capturing value of IIoT adds uncertainty downsides, such as undermining privacy, increasing complexity of manufacturing systems, and drawing in new competitors (Britton, 2016;Dickenson, 2015;Geisberger & Broy, 2015;Malina, Hajny, Fujdiak, & Hosek, 2016). So far, businesses have had mixed experiences with industrial servitization strategies in general (Eggert, Hogreve, Ulaga, & Münkhoff, 2014;Wirtz, Tuzovic, & Ehret 2015), and with exploiting the potential of IIoT services in particular (Yu, Nguyen, & Chen, 2016;Economist, 2015). Thus, we have reason to be skeptical concerning expectations for easy realization of the IIoT-envisaged benefits (Teece 2010;Chesbrough & Rosenbloom, 2002).…”

Importance of the Use of the Internet of Things and its Implications in the Manufacturing Industry

“…It is suggested to invest in IoT with a focus on the capacity for developing relationships between players in the supply chain. The information to innovation can be achieve through the data collection and dissemination, from the above it is inferred that it is very important to secure the information (Yu, Nguyen & Chen, 2016). Researches are been done regarding an Smart Office, this implies the use of IoT to do the data collection through different devices (Ryu et al, 2015).…”