Innovation Network, Digital Innovation and Frugal Innovation: History
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Contributor:
Crenguta Sinisi
,
Zahid Yousaf
,
Abdelmohsen A. Nassani
,
,
Mohamed Haffar

The innovation performance of energy firms is predicted by innovation networks. Digital innovation acts as a mediator between innovation networks and innovation performance links and frugal innovation strengthens the interplay between innovation networks and innovation performance links. This highlights how energy firms can stabilize innovation performance through the combined influence of innovation networks, digital innovation and frugal innovation. The managers of energy firms should prefer innovation networks to update their knowledge about the upcoming/latest procedures to achieve innovation performance. 

  • energy firms
  • innovation network
  • digital innovation
  • frugal innovation

1. Introduction

In the current digital-economy, the concept of innovation performance has been largely explored by innovation researchers to generate competitiveness for all types of firms [1]. Energy firms mainly depend on the constant and significant role of innovation networks to acquire innovation performance. At the same time, digital innovation is also documented as the formation of an advanced method for undertaking economic operations by means of new digital internet technologies to attain the purpose of innovation performance [2][3]. The innovation networks are considered a rapidly emerging-phenomenon for energy firms to increase their innovation performance [4][5]. The innovation technologies in marketing, product development and various strategies have contributed considerably to changing the businesses prototype of different firms such as energy firms [6]. Prior studies merely carried out research and investigated the prerequisites that can determine the growth of innovation performance in energy firms [5][7]. Moreover, research studies overlooked numerous vital factors that accelerate and enhance innovation performance inside energy firms so far. Previous researchers barely highlight innovation performance and its determinants in manufacturing firms [8][9], acquiring firms [10] and low technology firms [11], but do not enlighten as to the achievement of innovation performance in energy firms. The accomplishment of enhanced innovation performance for energy firms is a complex and tricky job, and there is also an enormous need to use strong innovation networks [8].Several preceding studies have been conducted on energy firms, but they focused on variables such as financial performance or environmental performance, which helps to boost and improve firm performance, although in prior studies innovation networks are not discussed as a mechanism that boosts the innovation performance of energy firms in Saudi Arabia [12]. This study contributes through offering an innovation performance model for energy firms. The outcomes of the digital economy in business enterprises are frequent, and this modified change of focus is particularly profound in energy firms [13]. After the emergence of advanced digital technologies, the temperament of business activities in the 21st century around the world has been transformed [14]. Delivery of services through the use of digital technologies requires innovation networks for the implementation of innovative business models [8]. Innovation networks drastically change the procedure and results of innovation performance due to their ontology and their particular nature [15]. The change activated by innovation networks is mostly different from those changes activated through traditional means and information-technologies because it used advance means to process and also gather huge amounts of information [14]. The innovation network has becomea fundamental part of the novel business model that put its print on digital innovation and innovation performance [16]. The innovation network accelerates the process of innovation via mobilizing and integrating internet technologies and human resources [17]. Several researchers have proposed that firms face various huge problems for running and adapting to digital change due to a lack of innovative resources and capabilities. The innovation network ensures integration and the transformation of digital-technologies for digital innovation and innovation performance [16]. Therefore, innovation networks play a vital role in digital innovation towards novel business models. Moreover, innovation networks help in offering the right direction for achieving innovation performance, and this mechanism is more authentic via digital innovation [18]. Previous researchers have suggested different features that are outcomes of innovation networks, and at the same moment, they certainly influence innovation performance. One main outcome of innovation networks is digital innovation that sequentially affects innovation performance.

2. Innovation Network and Innovation Performance

An innovation network includes informal and formal associations that exist among organizations, and this linkage can used to acquire reports, system knowledge, implicit knowledge and software to enhance innovation performance [19]. Innovation networks make it easier for organizations to get needed resources and information for improving innovation performance [20]. The structural attributes of an innovation network will have an effect on integration, utilization and absorption of knowledge into an organizations therefore affecting the innovation performance of the firm [21]. Firms can transform and take in a huge amount of implicit and invisible knowledge via innovation networks, by maintaining adaptability to rapid changes that are important for enhancing innovation performance [10]. Innovation networks enable firms to adapt advanced innovation capabilities by effective gathering of new knowledge to improve innovation performance [22]. They provide platforms to firms for innovative knowledge learning and accept rapid changes to increase new knowledge and the innovation performance of firms [23].

3. Digital Innovation as Mediator

Innovation networks help firms to acquire more information, new methods, knowledge and ideas through digital innovation regarding increasing their innovation performance [24]. They facilitate firms in knowledge acquisition for the development of new products and quick adaptation to new emerging digital innovation technology trends, as well as mobilization of their resources to improve innovation performance [25]. Innovation networks know how to increase opportunities for technological interactions and thinking collisions among organizations, which can greatly augment the development of digital innovation in firms, which eventually leads to improved innovation performance [22]. Innovation networks allow organizations to continuously obtain technologically innovative knowledge and information via digital innovation and merge this information with internal knowledge, generating many new ideas and concepts of product development in the organization for enhancing innovation performance [26]. However, digital innovation acts as a bridge between innovation networks and innovation performance. Digital innovation facilitates the use of existing resources and adoption of new market trends by firms to structure new products and improve existing ones [27]. Innovation networks provide a large amount of technical and technological knowledge for the attainment of digital innovation in firms to increase and enhance innovation performance [28].

4. Frugal Innovation as Moderator

Frugal innovation is related to the resources of an organization that are organized in such a way as to provide an uncertain environment for firms to perform their activities in transformed patterns and to move forward and become innovative [29]. Frugal innovation contributes to fulfilling the demands of customers who are unable to approach the existing products and services [30]. Previous studies have been enlightening regarding the progressive function of innovation networks in the enhancement of frugal innovation [31]. Frugal innovation adds to the strength of the link between innovation networks and innovation performance. Innovation networks perform a considerable role and facilitate the implementation of innovation activities that eventually enhance innovation performance [32]. Frugal innovations support organizations to engage in successful advance innovative activities, which speed up their services, underserve their customers and augment their innovation performance [33][34].

This entry is adapted from the peer-reviewed paper 10.3390/su14074330

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