Business & Management Studies

Knowledge acquisition from innovation failures: a study of micro, small and medium enterprises (MSMEs)

Knowledge acquisition from innovation failures: a study of micro, small and medium enterprises (MSMEs)

Knowledge acquisition from innovation failure positively associates with empowerment, creativity and organizational innovation.

Authors

Naman Sreen, Assistant Professor, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India.

Veenu Sharma, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India; Faculty of Retail and Marketing, Birla Institute of Management Technology, Greater Noida, India.

Safiya Mukhtar Alshibani, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India; Department of Business Administration, College of Business and Administration, Princess Nourah bint Abdulrahman University, Riyadh, Saudi Arabia.

Steve Walsh, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India; Anderson School of Management, University of New Mexico, Albuquerque, New Mexico, USA.

Giuseppe Russo, Jindal Global Business School, O.P. Jindal Global University, Sonipat, India. Department of Economics and Law, University of Cassino and Southern Lazio, Cassino, Italy.

Summary

This study aims to empirically examine the influence of management control systems (MCSs) on knowledge acquisition from innovation failure (KAFIF), which further impacts empowerment, creativity and organizational innovation. This study argues that enabling an MCS positively influences KAFIF, whereas controlling the use of an MCS negatively influences KAFIF. Further, KAFIF positively impacts empowerment, creativity and organizational innovation.

Methodology

This study aims to create a comprehensive stimulus–organism–response (S-O-R) framework. This framework includes an MCS (belief, interactive, boundary and diagnostic) as a stimulus, KAFIF as an organism and creativity, empowerment and organizational innovation as responses. The data were gathered using an online survey administered to a sample of 321 employees working in India’s micro, small and medium enterprises and analyzed using partial least squares structural equation modeling.

Findings

The results indicate that there is no correlation between belief control and the acquisition of knowledge from the failure of innovation, interactive control has a positive association with KAFIF and boundary control has no relationship with KAFIF. Diagnostic control has a significant negative association with KAFIF. Further, this study found that KAFIF positively associates with empowerment, creativity and organizational innovation.

Originality

This study is among initial studies that examine the influence of MCSs on KAFIF, which impacts empowerment, creativity and organizational innovation. Further, it helps be one of the initial literature on studying KAFIF rather than innovation success.

Published in: Journal of Knowledge Management

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