Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2021 Vol: 20 Issue: 6S

The Effect of Logistics Processing in Improving Technological Innovation Analytical Research in Al-Ittihad Company for Food Industry in Babylon Governorate - Iraq

Ahmed Shamkhi Hassan Mohamed, University of Babylon

Mujbil R. Merjan, AL- Mustaqbal University College

Keywords

General Companies, company's employees, Technological Innovation.

Abstract

This study aims to determine the effect of logistics processing on technological innovation, and to achieve this, the study adopted the logistics of processing with its dimensions represented by (determining the needs of processing, researching the supply market, choosing sources of supply, managing the demand for processing) and technological innovation with its dimensions represented by (open creativity, closed creativity). The study tried to answer the questions of the problem, the most important of which is to determine the nature of the relationship between the logistics of processing and technological innovation, the extent of the impact of the logistics of processing on technological innovation. The study was conducted at the General Company for Food Industries in Babylon Governorate, and the questionnaire was adopted to obtain the necessary data, as well as personal interviews, where the opinions of (163) of the company's employees were analyzed. The simple correlation coefficient was used to measure the correlation between the variables, as well as the (Z) test to test the significance of this relationship and the (T) test to determine the significance of the simple and multiple regression equation and the confirmatory factor analysis. The study sought to achieve a set of goals, the most important of which is assessing the extent to which the research organization understands (logistics processing) and the extent of its implementation and determining the dimensions of logistics processing and technological innovation. The study reached a number of conclusions, the most important of which are:

1. The current study standards represented by (logistics, processing, and technological innovation) have achieved good levels of confirmatory structural honesty, and this confirms the accuracy of the conceptual structures of these standards. Confirms the strength of the measures, their consistency, and the sincerity of their representation of the variables with a specific number of dimensions and measurement items.

2. The supplying logistics variable has a good degree of importance according to the answers of the respondents, which indicates that the study sample company is interested in organizing its relationship with the suppliers and determines the methods and chains of its supply and processing to ensure the smooth flow and flow of all types of inputs and the continuation of its production operations without stopping and support its orientations in achieving needs and desires customers.

Introduction

This study represents an attempt to determine the effect of the logistics of processing in achieving technological innovation, as the subject of the logistics of processing and its activities, along with the topic of technological innovation, has gained increasing importance from the book in the fields of logistics management and marketing. As the increase in products and their types and the variation in their quality levels has led organizations to increase interest in logistics and its activities, through which it is possible to promote technological innovation and thus ensure the organization for its survival and growth in the business world. Technological innovation needs different types of services, and since the need for these services varies from one innovation to another, organizations must study the needs that creativity prefers. The interest in technological innovation is a fundamental thing that contributes to increasing the organization's sales first and obtaining repeated requests for its products secondly, and that the failure of the organization to meet and provide the required level of creativity may mean losing customers. In view of the lack of studies interested in the activities of logistics processing and its relationship to technological innovation, the researcher was motivated to address this topic.

The study attempted to answer a number of questions that embodied its problem, which is (How well does the surveyed company understand your logistics supply? To what extent does the researched company implement your logistics supply? Is there a relationship between your logistics supply and technological innovation? Is there an effect of your logistics supply? in technological innovation?). The study came in four chapters, the first of which was devoted to some previous studies and the methodology of the study in two sections, where the first section dealt with some previous studies close to the current study. The second topic was devoted to clarifying the study methodology represented by (the problem, its importance, the study plan and its hypotheses), and the statistical tools and means that were adopted in the study. As for the second chapter, it dealt with the theoretical framework of the study variables in two sections, the first dealt with the concept, importance and objectives of the logistics of processing and the dimensions of the logistics of processing and its importance. As for the second topic, it deals with the study of the concept of technological innovation, its importance, and the standards of technological innovation.

The third chapter was devoted to the practical aspect of the study in three sections, the first topic came in describing and diagnosing the study variables, while the second section included testing the correlation relations between the study variables, and finally the third topic dealt with analysing and testing the trends of influence between the study variables. As for the fourth chapter, it included two chapters, the first dealt with the most important conclusions reached by the study, while the second topic dealt with the most important recommendations made by the study.

The Study Problem

The researcher’s wandering in the writings, research and academic studies, and his experience of the reality of the logistics in the company in question, motivated the researcher to delve into the subject of the study to find that the problem of the study possesses fertile ground in both the academic and applied fields. It is required to reconsider the priorities of thinking about a new agenda in topics in which interest was limited, and the most important of these topics are logistics, equipment and technological innovation (open and closed).

The researcher noticed

1. The logistics process of processing has a problem, as it relies on traditional processing (purchasing) methods, and the company does not have electronic processing methods.

2. A loss of study space from the market, a weak response to the customer and a weakness in generating new ideas for the logistics, preparing towards creativity with open and closed technology, and there is no culture friendly to creativity in the company.

From these problems resulted in a set of questions that embody the problem of the study, namely:

1. What is the understanding of the company under study for logistics?

2. Does the company care about technological innovation with open and closed technology?

3. Is there a relationship between your logistics and technological innovation?

4. Is there an effect between your logistics and equipment in technological innovation?

Objectives of the Study

Both suppliers and customers as an engine of growth in economic development and promotion of continuous innovation. Creativity is a necessary means to increase and maintain competitiveness. It only represents the continuous renewal of the product range and thus participation in change. Participation in this economic dynamic constitutes a continuous challenge for organizations, where the continuous examination of external environmental factors. As technological, economic, political and social development is necessary to maintain and expand the competitive position, the management of innovations and technologies becomes based on advanced developments and requirements. Critical disciplines of entrepreneurial trade. This aspect must be taken into account, especially in the management of processing, from advanced processing to life cycle management. The management of processing must be Able to use this strategic lever The objective of this is to identify the basic principles of innovation and technology management and to demonstrate the potential for impact through supply management, taking into account the considerations of effectiveness and efficiency to describe the design of innovation and technology management as an administrative task. Moreover, the integration of customers is considered a successful factor in the management of creativity.

Theoretical Framework for Your Logistic Processing

First: The logistics of processing guarantees all the activities that contributes to the movement of materials and manufactured and semi-finished goods from the suppliers or from the sources of raw materials to the places of production.

1. Determining the purchase (equipment): The supply department must provide it from the local and foreign markets for all the departments and subordinate departments of the organization, and the needs are determined by the departments that request the items

2. Purchasing market research (equipment): It is that research that includes interpretation, analysis and preservation of data, then extends to it and studies it at the time it needs to make the picture clear to the market.

3. Choosing and dividing the sources of supply the success in choosing the best among the sources of supply is one of the most important elements of efficiency in the completion of the processing activity in the organization.

4. Purchase order (processing): The processing procedures may differ from one organization to another depending on the capabilities and circumstances of the organization.

Second: Technological innovation you define it as renewing and expanding a range of products, services and markets associated with them, establishing new methods of production, supply and distribution, and introducing changes in the management and organization of work and the conditions and skills of the labor force.

1. Open creativity: is the implementation of new technical, economic, organizational and social solutions to the problems of organizations and markets. Rescue in the market.

2. Closed creativity: It depends on the innovations adopted by the organization and the source of the ideas in it within the organization, such as senior management, employees and departments of the organization in research, development and marketing.

The researchers used the simple correlation coefficients test (Pearson) for the purpose of testing the main hypothesis related to the correlation between the independent variable (logistics supply) with its sub-dimensions (determining the purchase of equipment, research of the purchase of supply market research, selection and evaluation of supply sources, management of supply demand) and the dependent variable (technological innovation). In order to explain the value of the correlation coefficient and how to judge it, the opinion that it is divided into five basic categories will be adopted, as shown in the table 1 :

Table 1
Categories Of Interpretation Of The Level Of Correlation Coefficient
No. Interpretation of the correlation Correlation coefficient value
1 There is no correlation r = 0
2 complete positive or negative r =
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