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Proceedings IFKAD 2024

Translating Knowledge into Innovation Dynamics
List of Included Articles:
A Network-Based Community Detection Ensemble Bibliometric Analysis of Knowledge Assets and Competitive Advantage
Carlo Drago

With today’s rapidly evolving business environment, knowledge assets have become critical for organizations to maintain a competitive edge. This paper explores the linkage between knowledge assets and competitive advantage using innovative bibliometric techniques. By employing a network-based ensemble community detection strategy, combining techniques in community detection on a unique synthesis, we analyze the co-occurrence network of keywords to identify the essential themes and relevant findings in the literature. So, we construct a SCOPUS bibliometric database and apply multiple correspondence analysis to synthesize the data. From the conceptual map structure, we were able to discover the most relevant themes in the literature and their relationships, comparing the robustness of the results of the network analysis of the co-occurrence keywords. Then, we considered community detection approaches to the co-occurrence keyword network to identify the “cores” of the literature. Then, starting from the membership data, we considered a hierarchical cluster analysis to identify keyword clusters and reveal the best practices and frameworks that support the efficient management of knowledge assets in the digital age. This novel approach enhances the analysis compared to traditional bibliometric methods, providing crucial insights into the key concepts and relationships. Our findings emphasize the importance of innovation management, strategic knowledge management, long-term management of competitive advantage, and the appropriate management of employees’ roles in knowledge management. These insights contribute to the our understanding of how organizations can successfully navigate the competitive landscape and achieve sustainable success in the market. Furthermore, we examine the methods and tools companies can use to transform their knowledge into practical outcomes, such as developing new products, services, or processes. The study also investigates the role of technology, mainly digital technologies, in facilitating value creation and driving knowledge-driven innovation. By identifying the critical factors and strategies for leveraging knowledge assets, this research provides actionable recommendations for managers seeking to enhance organizational learning, foster knowledge sharing, and align knowledge management practices with sustainable development goals. This study has important policy implications related to knowledge management, innovation, and competitive advantage at the macro level. By highlighting the strategic importance of intellectual capital and its role in driving competitive advantage, this research contributes to the broader context of intellectual capital management. The findings of this study can provide organizations with insights into how to manage knowledge assets for sustainable growth and wealth creation.

Innovation Capability and Competitiveness in the Hotel Industry: Human Capital as a Precursor
Patrocinio Zaragoza-Sáez, Bartolomé Marco-Lajara, Mercedes Úbeda-García, Encarnación Manresa-Marhuenda, Esther Poveda-Pareja

Due to the dynamism and complexity of the competitive environment firms must respond flexibly and, in this context, innovation is an essential capability to be able to respond to the existing demands. Together with innovation, the tourism industry plays a fundamental role in the economy of many countries due to its contribution to GDP and job creation. In the current global environment, in which tourism companies, specifically hotels firms, try to ensure their long-term continuity and survival, innovation is seen as an important capability to increase their competitiveness. Moreover, in the scientific literature, several precursors of the innovation capability in the hotel industry have been identified. Taking into account these ideas, the main purpose of this research is to develop an empirical model that analyses the relationship between human capital, innovation capability and performance in hotel firms. After a thorough review of the literature, a theorical model is developed and seven hypotheses are established, which are tested through PLS on a population of 322 Spanish hotels with at least three stars. Findings obtained have allowed us to accept the proposed hypotheses and answer the formulated research questions. Firstly, it has been confirmed that the innovation capability of hotels positively influences their competitiveness. Secondly, it is also confirmed that the flexibility and qualifications of human resources are antecedents of innovation capability and the competitiveness of hotels. Finally, the results verify that the innovation capability of the hotels analysed acts as a partial and complementary mediating variable between human capital and their competitiveness.

The Development of Conceptual Framework for the Relationship between Innovation, Quality Management and Export Performance
Tomislav Baković, Ines Dužević, Stjepan Mihalić

Innovation and Quality have been stressed as key factors for the success of numerous enterprises. While quality management takes care of the existing customers and maximizing revenues from current markets innovation is focused on new customers and creation of new revenue streams. Beside quality and innovation export is also often cited as an important predictor for the long term success of the company. While there is little disagreement on the individual contribution of these factors to the company success problems appear when looking at the best frameworks for combining them. The topic of the relationship between quality and innovation has been heavily discussed in literature. In these discussions the idea that quality management will stifle innovation through its current costumer focus and bureaucratization is prevalent. On the other hand, many authors find quality and innovation to be mutually supportive. One of the often used typologies of innovations from the standpoint of competitiveness divides them on product and process innovation. Beside these two for the purposes of this paper the concept of business model innovation was also used. The conceptual model for this paper together with accompanying hypothesis was developed by using Conditional process analysis. The main advantage of using Conditional process analysis is its ability to combine both mediator and moderator variables in the same analytic model (Hayes, 2013). This research methodology is understated in researching the relationship between quality, innovation and organizational performance and clear reasons for advantages of this approach are given. According to literature review and methodologies chosen we believe that the role of business model innovation is primarily to be the moderator for the relationship between quality management, process/product innovation and export performance. On the other hand, product and process innovation could typically act as mediator for the relationship between quality management and export performance. Although measuring scales for each variable in the model are not proposed since paper deals with popular variables there can be many options for accessing every variable. Also a discussion on the relationship between these variables could vary according to some contextual factors (like industry type). There are several contributions made by this paper. First of all, this paper includes the concept of business model innovation into the debate on the relationship between quality and innovation. There is a lack of research including the relationship between business model innovation and company performance. Although there are lot of papers that deal with dual relationships between quality, innovation and performance there is a lack of research on the simultaneous relationship between all three. The framework chosen for this paper and suggested methodologies put emphasis on innovation as being both a mediator and moderator for the relationship between quality management and export performance.

A Systematic Approach to Managing Counter-Knowledge in Complex Health Domains
Jorge Cegarra-Sanchez, Aurora Martinez-Martinez, Anthony Wensley, Juan Gabriel Cegarra-Navarro

Malicious Learning has been introduced to encompass erroneous learning that occurs in Machine Learning when erroneous data enters the training sets deliberately or through noise or miscoding. In the social domain, the term counter-knowledge has been used to refer to misinformation, gossip, rumours, and conspiracy theories that masquerade as knowledge. Counter-knowledge leads to inappropriate individual behaviours and organisational decision-making. Therefore, an individual’s assimilation of such counter-knowledge can have various harmful consequences for his organisation. This study proposes a framework for investigating the relationship between counter-knowledge and learning myopia at the individual level in the healthcare domain, focusing on Multiple Sclerosis (MS). Given that those suffering from MS can experience symptoms leading to both a slowing down of information processing and a limited capacity. It is argued that these symptoms are likely to lead to exacerbating other symptoms, such as anxiety and depression. In addition to investigating how social counter-knowledge results in individual counter-knowledge, a set of strategies to disrupt this linkage is proposed.

Bibliometric Analysis of Frugal Innovation in the Service Industry: Trends, Patterns, and Implications
Ramon Fisac, Gustavo Morales-Alonso, Faisal Rasool

Frugal innovation is a concept that has gained significant attention in recent years, particularly in emerging markets where resources are often limited. Even if many studies have been published in the last decades, literature still lacks a framework that considers different approaches and provides a common understanding of the field. The goal of this study is to provide a comprehensive overview of the existing literature on frugal innovation in the service industry and identify key trends and research gaps. To that end, a bibliometric analysis was used. Bibliometrics approach contrasts with literature reviews by providing objective and reliable results due to its lesser subjective nature. After applying restrictions such as language, publication type, and relevance to frugal innovation, we refined our dataset to 79 pertinent publications, from 2011 onwards, including journal articles, conference papers, and book chapters. Our research identified 5 different clusters in the academic conversation on frugal innovation in the service industry: the intersection of ICT and frugal service innovation, the role of Knowledge Management in frugal service innovation, considerations of cost within the context of frugal service innovation, innovation management strategies relevant to frugal service innovation, and organizational practices conducive to frugal service innovation.

Coaching Practices for Knowledge Management in Organizations: Theoretical Insights
Malgorzata Zieba

This conceptual paper aims to present the results of the literature analysis devoted to coaching and its potential use in knowledge management (KM), especially in knowledge management processes in organizations. This study is based on the analysis of the literature related to organizational psychology and knowledge management, especially KM processes. The search of the articles for the paper has been conducted with the use of Google Scholar and Scopus databases. The paper offers new insights for researchers dealing with the topic of coaching and knowledge management processes and their potential link. The practical implications of this paper are that it can be useful for organizations considering the integration of coaching into their structures and examining the potential benefits of this solution. As it is stated in the paper, there is a potential of coaching practices to strengthen organizational knowledge management initiatives, creating a dynamic and adaptive environment that empowers individuals and enhances collective learning. The integration of coaching into knowledge management strategies may contribute to organizational development, emphasizing the value of human capital in the creation, sharing, and utilization of knowledge. At this stage of development, the proposed study is entirely of theoretical character. Therefore, there is a need in the future to conduct empirical studies examining the relationship between coaching and knowledge management processes in various types of organizations.

The Nexus of Moral Integrity: Exploring the Interplay of Rational Knowledge, Open-Mindedness, and Altruism in Organizational Dynamics
Aurora Martinez-Martinez, Juan Gabriel Cegarra-Navarro, Alexeis Garcia-Perez, Jose María Viedma Marti

Moral integrity is a key aspect of business, raising trust and reliability among stakeholders. Within servant leadership, moral integrity is principal, aligning with the principles of prioritising the well-being of team members, customers, and stakeholders in general and cultivating ethical conduct. This study investigates the relationship of moral integrity, altruism, open-mindedness, and rational knowledge in the context of servant leadership, aiming to elucidate their roles in shaping ethical decision-making processes and leadership effectiveness in organisational settings. We address the gap in the practical application of servant leadership principles by posing research questions that explore into rational knowledge, the influence of altruism and open-mindedness on moral decision-making processes. Drawing from a comprehensive literature review, we establish the theoretical background for each construct. Using a quantitative survey, we employ validated scales to measure each construct and analyse the data using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results underscore the significance of moral integrity as a driver of organisational success and ethical behaviour. Rational knowledge is a mechanism for open-mindedness and altruism, promoting moral integrity within organisations. This study contributes valuable insights for organisations seeking to cultivate ethical cultures, promote servant leadership principles, and survive in the long term.

Innovation in Cluster Activities in Poland
Anna Horzela-Miś

Globalization, civilizational-technological development, and the increasing awareness and market education of buyers constitute the basis of intensifying competition in today’s world. To meet this challenge, businesses must implement innovations that enable the improvement of existing processes and the introduction of new ones with greater development potential. Innovations are a key factor determining the competitiveness of enterprises. One of the visible processes in socio-economic systems is the development of network structures, including clusters, which are one of the most dynamic and visible processes in the world today. Cluster networks, as a form of cooperation between businesses and other entities, create the potential of cities and regions and are a significant factor in economic development. The aim of the study is to examine the participation of enterprises in cluster initiatives in the years 2020–2022 and to analyze this participation in the context of various sectors of industry and services as well as territorial divisions. Additionally, the authors seek to understand the relationships between participation in cluster initiatives and innovative activity and to identify factors influencing enterprise participation in clusters. The research is based on quantitative data from the Central Statistical Office report. The final article focuses on formulating specific conclusions based on quantitative analysis, addressing research questions, including differences between sectors, local factors influencing participation in clusters, and the benefits and challenges associated with participating in cluster initiatives. The study provides valuable insights into the practical application of innovation in Polish clusters and their role in shaping the competitiveness of the economy.

Demand-Driven Circular Supply Chains
Katarzyna Nowicka

This research is motivated by the pressing need to address challenges in implementing sustainable development principles, particularly within the circular economy. Understanding the role of consumers in driving demand-driven circular supply chains is crucial for effective implementation. While supply chains influence environmental impact and waste reduction, consumer involvement is pivotal. However, the current literature lacks a comprehensive understanding of consumers’ role in shaping circular supply chains. Aim: This paper aims to identify the role of consumers in driving the success of R-strategies and enhancing supply chain value propositions. Methodology: A systemic literature review, following PRISMA guidelines, will be conducted using databases such as Scopus, Emerald, Ebsco, and WoS to explore the role of consumers in managing circular supply chains. Main Findings and Contributions: Supply chain strategies often overlook consumers as active participants, treating them merely as endpoints in the product lifecycle. Circular supply chains can positively impact sustainable development, but consumer behaviour is crucial for implementing R-strategies effectively. This paper advocates for a systemic understanding of circular supply chains to guide sustainable development efforts. Paper Structure: The paper begins with an overview of the circular economy and supply chain complexity. It then delves into the role of consumers in implementing R-strategies within supply chains, followed by conclusions and recommendations for introducing demand-driven circular supply chains in the competitive landscape of the 21st century.

Coopetition and Alliances in Amazon’s Supply Chain: A Bibliometric Analysis
Maria Magro-Montero, Gustavo Morales-Alonso

This article examines emerging dynamics in e-commerce supply chain research, with a particular focus on alliances and collaborations between key actors. It highlights the existing imbalances in the scientific literature and the lack of studies on large retailers such as Amazon. Through an innovative bibliometric analysis using Bibliometrix and VOSviewer software, we show data such as scientific output, sources and authors in recent years, as well as key insights for future research, including understanding collaboration between different actors in the supply chain. A total of 366 articles published between 2013 and 2023 were analysed, covering 917 authors, 222 journals, and 47 countries. The main finding of this research shows the growing interest in the supply chain of the e-commerce companies and the results provide clues for further investigation in this field.

How Should We Govern Digital Innovations? An Organizational Alignment Perspective
Jesus Salgado-Criado, Jeroen Meijerink

The rise of Artificial Intelligence (AI) necessitates addressing the “alignment challenge”: ensuring AI pursues our intended goals. Scholars explore this challenge on two levels: – Macro-level: Laws, regulations, and economic policies aim to mitigate risks posed by misaligned AI. – Micro-level: Technical methods prevent AI from pursuing unintended goals. However, a crucial gap exists at the meso-level: the internal dynamics of organizations developing and deploying AI. Their decisions shape the safety and societal value of AI. This research addresses this gap by examining how AI is aligned within organizations. We utilize a qualitative approach, interviewing managers from companies employing AI for decision-making in banking, airline revenue management, and retail pricing. Our findings reveal that AI alignment extends beyond simple goals like maximizing profit. It interacts with a spectrum of organizational aspects, categorized into five dimensions: – Strategic: Alignment between AI’s goals and the organization’s vision, mission, and objectives. – Structure and procedures: Aligning AI with existing organizational structure and procedures. – Cultural: Ensuring AI aligns with the organization’s values, decision-making processes, and leadership style. – Human Capital: Aligning AI with employee engagement and skill development. – Environmental: Adapting AI to industry dynamics, market trends, and societal expectations. This framework highlights challenges like the potential for AI to disrupt existing processes or employee roles. It also emphasizes the importance of explainability for stakeholder trust. To ensure safe and responsible AI deployment, organizations should establish and monitor alignment indicators for these five dimensions. This research lays the groundwork for operationalizing this oversight throughout the AI lifecycle. By bridging individual, team, organizational, and societal levels, this work contributes to a comprehensive understanding of the multi-level AI alignment challenge. We strive to develop AI that serves the best interests of humanity at all levels.

The Impact of Artificial Intelligence on the Socio-Cultural Roots of Japanese Organizations and the Coming Renaissance in Organizational Strategy and Innovation
Arthur Pantelides

Starting in the early 1980s a handful of Japanese automakers began buying up American automotive car parts companies, even into Ford’s steel manufacturing subsidiary. This was only the beginning, Japanese organizations embarked on a buying spree in everything from US commercial real-estate to Hollywood production studios. Everyone was convinced that “Japan Inc.” would buy the whole of America. To put this into perspective, in 1970, 7 out of 10 of the world’s largest banks were American and none were Japanese. By 1990, 6 of the top 10 largest banks in the world were Japanese and no American bank made the list. However, within a decade this significant level of development peaked, and by 1991, the country that was arguably at the centre of industry and commerce, retreated globally. The “lost’’ decade of the 90s became two decades and by some accounts extended to three. Nevertheless, Japan’s global influence still remains formidable; it has the third largest economy in the world. This has been achieved by a nation with almost no natural resources to speak off, a nation where global export is the primary economic lifeline and its exported products are considered some of the most technologically advanced in the world with innovation being a cornerstone. This initial paper of a series of extended research will introduce concepts of learning and knowledge creation, as well as conversion and implementation into innovation and strategic advantage. The links to Japan’s socio-cultural factors will be identified, examined, and their relationships manifesting in business organizational cultural factors and influences will be analysed. We will address how these in turn impact organizational processes resulting in corporate strategy. A key aspect is the investigation of the role that Artificial Intelligence (AI) plays within this framework. A qualitative analysis was performed to measure organizational AI adoption and utilization and direct impact on knowledge sharing. The indirect influence on corporate culture and subsequent organizational strategic advantage is conceptualized. We further consider the role AI can play in four basic strategies of advantage-development within the context of knowledge creation and sharing within the organization, that is, the identification and utilization of key factors for success; the identification of means for exploiting differences in competitive advantage among rivals; the identification of means for upsetting rival industry factors so that openings can be created; and the identification of innovation opportunities and pathways themselves.

Feedback for Hybrid Teams, Best Practices and Trends
Alfredo Castro, Roberto Sbragia, Elza Veloso

This study aims to identify which practices are adopted by leaders of teams that are called “hybrid”. This is a relevant topic in the current administration scenario and signals trends in the future of work – whether through digital transformation, enhanced by new models of communication and work, or through the lack of data, information and practical proposals to improve business results. This is a comparative qualitative study, using multiple case studies as a method. All efforts in this work followed the precepts of scientific research, supported by a deep set of theoretical references: around 327 works were consulted and served as the basis for the method of formulating conclusions and recommendations, after analyzing the data collected on interviews with 27 hybrid team leaders, based in 14 countries. The study highlights the challenges of leadership and new adaptive models of providing feedback. Faced with the hybrid environment, leaders are seeking new approaches and applying alternative forms of communication to ensure that all team members are supported and guided effectively, regardless of the degree of “hybridity” of the work environment. Especially when members of hybrid teams work asynchronously and in a virtual environment, the transformation and inclusion of digital tools tends to be increasingly frequent, enriched with principles of storytelling, assertive communication, active listening, perception of behaviors in hybrid environments, sharing of purpose and greater openness to the inclusion of diversity. The study presents a “framework” that translates the four main dimensions of a hybrid team and its degree of complexity for providing feedback, as well as recommendations and practices considering the differences between the face-to-face and remote nature, and the degree of synchronicity of the work.

Leveraging AI for Knowledge Sharing with Customers to Mitigate the Negative Effects of Fake News
Nima Taraghi, Enrico Scarso, Tomas Cherkos Kassaneh, Ettore Bolisani

Effective knowledge management (KM) practices, coupled with artificial intelligence (AI) technologies, offer promising avenues for mitigating the spread of fake news while enhancing knowledge sharing with customers. By leveraging AI algorithms, organizations can sift through vast amounts of information to identify and flag potentially misleading or false content, thereby safeguarding the integrity of knowledge shared with customers. This study explores the transformative role of AI in enhancing customer education and combating misinformation. In an era where fake news threatens brand integrity and customer trust, leveraging AI for knowledge sharing emerges as a crucial strategy. The research underscores how AI facilitates personalized learning experiences and intelligent content dissemination, thereby empowering consumers to critically navigate the digital information landscape. Drawing on examples from Instagram, X (Twitter), and WhatsApp, the paper illustrates AI’s impact on digital literacy and misinformation mitigation. Instagram’s use of AI to identify fake news, X’s implementation of warning labels, and WhatsApp’s message forwarding limits exemplify how technology platforms can engage users in the fight against misinformation. Particularly, WhatsApp’s ‘Check the Facts’ campaign highlights the importance of user empowerment and verification practices. The findings emphasize the central role of users in mitigating fake news, suggesting that empowering them through AI-enhanced education is vital. Despite acknowledging the limitations due to the rapidly evolving digital and AI technologies, this research suggests future studies could broaden the scope of AI applications in customer education across various sectors. The study reveals AI’s significant potential in customer education strategies to build a well-informed society capable of combating misinformation, highlighting the need for ongoing innovation, ethical considerations, and user engagement.

Proto-Personas: Innovation and Agility in the Process of Identifying the Ideal Customer
Eduardo Trauer, Aline Brittos Valdati

This study examines the use of proto-personas in marketing to quickly determine the profile of the ideal customer using the bonsai market as an example. The evolution of the marketing concept developed by the American Marketing Association (AMA) is presented, complemented with the explanation of McCarthy’s 4 P’s. The holistic and ethical approach proposed by Drucker and others is emphasized, and includes the Marketing Mix, reconceptualized as Solution, Access, Value and Education. A reflection on the definition of marketing integrated with the moral and ethical values of society is presented. The article details the development of personas, a concept established in the 1980s by designers and incorporated by marketing professionals as a strategic tool to facilitate segmentation and marketing. Buyer personas are necessarily anchored in detailed research and should reflect the objectives, needs and interests of users based on both structured and unstructured databases, and market research. However, the creation of proto-personas has emerged as an agile and economical alternative, ideal for situations with limited resources or insufficient data. Proto-personas are created through the existing knowledge of stakeholders called experts and are structured as simplified and empathic versions of so-called ideal customers. Although initially based on expert knowledge, they must be validated and improved through subsequent market research. This research employs a qualitative and bibliographical methodology to understand the application of proto-personas in marketing. The lack of formal academic studies on this concept in the marketing sector led researchers to include, in addition to scientific literature, reliable gray literature and market practices. The practical study involved the creation of two proto-personas in the context of the bonsai market, with the participation of experts in this sector. The process included in-depth interviews and the use of technological tools such as the AWS artificial intelligence platform and ChatGPT 4.0 to transcribe the interviews and generate insights into the development of proto-personas and their images. The study concludes that proto-personas are efficient and effective in quickly identifying the ideal customer, especially at the beginning of product/service development in competitive markets. They provide valuable insights for professionals, contributing to more dynamic and personalized marketing strategies. Despite limitations, such as the specific choice of experts, the application of this technique in varied contexts for future research and development is recommended.

Igniting Customer Success: Entrepreneurial Ideas and Imagination in Microenterprises
Szu-Chi Yang, Suechin Yang, Chia-Yu Tu

This study delves into how micro-enterprises, when confronted with future uncertainty, can inspire intrinsic entrepreneurial ideas and imagination among entrepreneurs. It particularly emphasizes the critical role of their insight and predictive abilities regarding future customer demands. The core of this insight and prediction lies in imagination, requiring entrepreneurs to possess rich imaginative capabilities and translate them into practical actions to enhance customer performance. The research methodology employs Fuzzy Set Qualitative Comparative Analysis (fsQCA) as a qualitative tool aimed at a comprehensive understanding of complex interrelationships. The findings demonstrate that, in the face of uncertainty, imagination serves as a crucial tool for entrepreneurs to effectively address challenges. However, mere imagination is insufficient to realize the prediction and satisfaction of customer demands; entrepreneurs also need to transform imagination into tangible actions, including product innovation, adjustments in marketing strategies, and redesigning organizational structures.

Identify Fintech Innovation Trajectories through Patent Analysis
Giovanna Ferraro, Antonio Iovanella, Alessandro Ramponi, Giulia Rotundo

The term “Fintech” refers to the use of technology to automate various financial services, products, and operations. The aim of this paper is to examine the patents certificates to analyze technology trends and to forecast future developments related to the various aspects of Fintech. Through the network analysis of the patent dataset, we identified five relevant technological clusters that allowed us to detect the technological substrate underlying the corresponding cluster. The Bass diffusion model permitted the observation of the technological trajectories of each cluster outlining the diffusion patterns.

Agent-Based Modelling of Electric Vehicles Adoption: Assessing Range Anxiety and Environmental Awareness’s Impact
Lorella Cannavacciuolo, Vincenzo Maione, Cristina Ponsiglione, Simonetta Primario

As the importance of environmental safeguards grows, European countries are taking stronger actions to reduce air pollution and address climate change. To achieve environmental sustainability demanded by the Green Deal’s neutrality goals, the reduction of greenhouse gases by the automotive sector plays a fundamental role. The deployment of the adoption of electric vehicles seems to be an effective strategic policy in this direction. Researchers have addressed this topic by focusing mainly on specific technical or external variables to serve particular research purposes; other research models are specifically related to some empirical realities, limiting the possibilities for generalization and theory development. As a result, to the best of our knowledge, there is a lack of studies that analyse the impact of behavioural factors on EV adoption. In our paper, we address this research gap by developing an empirical agent-based model for the adoption of electric vehicles in a community of individuals, evaluating the impact of range anxiety and environmental awareness. Range anxiety is a key variable that plays a fundamental role in electric vehicle adoption, and it can be balanced by environmental awareness. We find that while the adoption is inversely proportional to range anxiety, it is directly proportional to environmental awareness. The research sheds light on the importance of behavioural variables affecting the adoption rate and provides new instruments for policymakers to promote coordination and international networking, enabling the development of new policies. Further research could investigate the antecedents of range anxiety and ways to raise environmental awareness to speed up the transition to sustainable mobility.

To Make of to Buy Innovation: An Agent-Based Approach
Linda Ponta, Raffaella Manzini, Silvano Cincotti

In this world so dynamic and full of opportunities, firms need to face challenges in markets and technologies. One of the main assets that firms can use to address these challenges is innovation and one important aspect of innovation management is choosing between insourcing (make) or outsourcing (buy) innovation. Not only the historical and dichotomous make-or-buy perspective should be taken into account by firms, but also hybrid and plural sourcing views as well as the creation of strategic alliances. Thus, in the dilemma, there is a third opportunity for firms, i.e. collaboration. In this work, the joint impact that “making” (alone or opening to collaborations with other companies) or “buying” innovation may have on companies’ performance has been investigated. For this study, an agent-based model and simulator characterized by heterogeneous firms that are organized as a directed random graph has been developed. Results show that the most convenient strategy for economic performance is the buying innovation strategy. The adoption of an agent-based model allows an understanding of emerging dynamics and their effect on performance. For managers and policy-makers, it suggests the need to see the innovation process with a comprehensive view, including the understanding not only of the technical knowledge of the product or process produced but also the resources that need to be used or acquired to make it.

Diversity in Patent Applications in Europe: Causes and Consequence
Maja Bacovic, Nikola Milovic

Innovativeness in Europe, measured by domestic patent applications per million residents, declined in the last two decades. On the other side, expenditures for research and development, both total and from the business sector, have increased for the last two decades. Innovativeness is an integral part of all European strategic documents. Still, it declines. This study aims to investigate possible causes of declining innovativeness in Europe. Therefore, we examine trends in expenditures for research and development (total and business), the number of researchers in the R&D sector, tertiary education attainment, and the share of graduates in STEM programs. The sample is 38 European countries, USA, and Japan, from 1998 to 2022 (or upon data availability). The descriptive statistical analysis shows that a strong positive linear relation exists between the number of patent applications (per million residents) and total and business expenditures for R&D, the number of researchers in R&D, and GDP per capita. A positive correlation was observed between the number of patent applications (per million residents) and government expenditures per tertiary education student, expenditure on tertiary education, and tertiary student graduates, although with lesser relevance. Applying OLS model on panel data, we show that growth in business expenditures for R&D (percentage of GDP) by one percentage point leads to growth in the number of patent applications per million residents by 88.2, growth in the number of researchers in R&D per million people by one percentage point leads to growth in number of patent applications per million residents by 0.01, and that growth in the percentage of graduates from STEM programs by one percentage point leads to growth in the number of patent applications per million residents by 1.5. This study shows that expenditures for R&D and education in STEM programs are essential determinants of the country’s innovativeness. Research and development-intensive industries, where patents are critical to competition, need an enabling environment to institutionalize innovation and reward investments in innovative technologies and processes.

Proceedings IFKAD 2024
Translating Knowledge into Innovation Dynamics

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