To read this content please select one of the options below:

How does digital transformation affect innovation in knowledge-intensive business services firms? The moderating effect of R&D collaboration portfolio

Yunlong Duan (Division of Science and Technology Administration, Yunnan University of Finance and Economics, Kunming, China)
Meng Yang (Business School, Yunnan University of Finance and Economics, Kunming, China)
Hanxiao Liu (School of Economics, Yunnan University of Finance and Economics, Kunming, China)
Tachia Chin (College of Business, Honghe University, Mengzi, China)

Journal of Knowledge Management

ISSN: 1367-3270

Article publication date: 5 September 2023

Issue publication date: 29 April 2024

543

Abstract

Purpose

Firms are driven to ride on the digital wave in today’s open innovation ecosystem. This study aims to explore the effect of digital transformation (DT) on knowledge-intensive business services (KIBS) firms’ innovation ambidexterity, namely, radical versus incremental innovation, respectively. Meanwhile, the authors evaluated the moderating role of the complexity of R&D collaboration portfolio (i.e. organizational diversity and geographic diversity) in the above relationships.

Design/methodology/approach

Using a panel data set of 171 Chinese listed firms in the information and communications technology services industry from 2010 to 2018, the proposed hypotheses were empirically attested.

Findings

It is found that DT has a positive relationship with radical innovation and an inverted U-shaped relationship with incremental innovation. In terms of the R&D collaboration portfolio, organizational diversity positively moderates the relationships between DT and innovation ambidexterity, respectively. The geographic diversity weakens the inverted U-shaped effect of DT on incremental innovation; however, its moderating role in the link between DT and radical innovation is not empirically verified.

Originality/value

Extant scholars mainly addressed the interplay between KIBS firms and their manufacturing clients, while this study reveals the different consequences of DT on KIBS firms’ innovation ambidexterity to highlight the role of KIBS firms is an independent and essential innovator in a knowledge-driven economy. Notably, the findings contribute to knowledge management (KM) and R&D literature by confirming the diversity of the R&D collaboration portfolio is a critical KM strategy for KIBS firms to develop and promote external knowledge resources.

Keywords

Acknowledgements

The paper was supported by the National Natural Science Foundation Project of China (Grant Number: 72274165; 72272136), and Applied Basic Research Key Project of Yunnan (Grant Number 202301AS070072). The authors thank them wholeheartedly for funding the research.

Disclosure statement: No potential conflict of interest was reported by the authors.

Citation

Duan, Y., Yang, M., Liu, H. and Chin, T. (2024), "How does digital transformation affect innovation in knowledge-intensive business services firms? The moderating effect of R&D collaboration portfolio", Journal of Knowledge Management, Vol. 28 No. 4, pp. 994-1019. https://doi.org/10.1108/JKM-02-2023-0161

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

Related articles