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A multinational corporation (MNC) looking to locate within a cluster is mainly interested in gaining access to scarce and highly valuable tacit knowledge. The transfer of such resources first requires sharing a certain degree of architectural and component knowledge. The social, organizational, cultural, institutional, technological, and physical distances between a MNC and the new subsidiary, as well as its local partners, offer a good indication of the way the architectural and technological knowledge is shared. The purpose of this paper is to examine the transfer of systemic technological expertise (component tacit knowledge) that is incorporated into organizational practices (architectural knowledge).

The mathematical expression of localization performance is inferred from a conceptual research that formulates hypotheses regarding the impact of these variables on knowledge transfer. The MNC chooses its location in such a way as to maximize this performance.

This research contributes to a better understanding of how knowledge transfer effects may interact with local effects, while explaining a subsidiary’s performance with regard to location.

In order to apply this model, one would need to numerically compute the variables of this model and the performance in order to obtain a numerical estimation of the variables, by the econometric methods, which intervenes in the performance. Then one could use this numerical expression of the performance as a specific criterion of localization. Indeed it would be sufficient to evaluate both architectural and component knowledge which could be exchanged as well as different distances and the motivation for each of possible localizations and to select the one which gives the maximal numerical value for the performance.

The authors deduced from the mathematical model a simple decisional criterion for a manager in search of an optimal location.

This research provides an interpretation of the concept of knowledge embeddedness by showing that the effective transfer of architectural and component knowledge involves the prior sharing of a certain amount of this knowledge.

Building on the resource- and knowledge-based views, this paper aims to explore how coopetition affects radical innovation and the roles of knowledge structure and external knowledge integration in the relationship between coopetition and radical innovation.

This study proposes a research model to examine the mediating role of external knowledge integration on the coopetition-radical innovation link, where the mediation is moderated by the firm’s knowledge structure (including component knowledge and architectural knowledge). The authors use regression and bootstrapping to test the proposed model with survey data from 241 Chinese technology firms.

This study finds that coopetition positively affects radical innovation and the effect is fully mediated by external knowledge integration. Additionally, component knowledge negatively moderates the coopetition-external knowledge integration link and architectural knowledge positively moderates this relationship. Further, the mediating effect of external knowledge integration is also moderated by component knowledge and architectural knowledge.

Firms should engage in coopetition to promote radical innovation. Further, it is necessary for firms to appropriately manage coopetition according to their internal knowledge structure.

This study explains why scholars have different ideas about the relationship between coopetition and radical innovation by exploring the mediating role of external knowledge integration and the moderating effect of knowledge structure. Firms possess increased possibilities for knowledge leakage and partner opportunism with high levels of component knowledge, which will reduce the positive effect coopetition on external knowledge integration; thus, they are less likely to realize radical innovation. Instead, firms possess increased opportunities for resource sharing with high levels of architectural knowledge, thus improving the positive effect coopetition on external knowledge integration and they are more likely to achieve radical innovation.

A multinational company (MNC) looking to locate within a cluster is mainly interested in gaining access to scarce and highly valuable tacit knowledge. The transfer of such resources first requires sharing a certain degree of architectural and specific knowledge. This paper aims to examine the transfer of systemic technological expertise (specific tacit knowledge) that is incorporated into organisational practices (architectural knowledge). To quantify the level of knowledge transfer involved, the present study defines the architectural distance between the MNC and the cluster.

The mathematical expression of acquisition performance is inferred from a conceptual study that formulates hypotheses regarding the impact of these variables on knowledge transfer. The MNC chooses its location in such a way as to maximise this performance.

Applying a mathematical model to knowledge transfer between two of the MNC units helps to determine if the locally acquired knowledge could benefit other units of the MNC.

The present study defines the architectural distance between the MNC and the cluster. This architectural distance is defined by a vector composed of social, organisational, cultural, institutional, technological and geographic distances between the new acquisition and its network of local partners, on the one hand, and the MNC, on the other. Knowledge transfer also depends on the business players’ trust and motivation. Further research through a quantitative study would be useful to improve the links between the proposed mathematical model and the efficiency of an MNC’s location within a cluster.

The solution to the optimisation problem allows to put forward a simple decision criterion to assist a manager who has to face the problem of an optimal location choice.

First, this study contributes to a better understanding of how knowledge transfer effects may interact with cluster effects, while explaining a subsidiary’s performance with regard to location. Second, it provides an interpretation of the concept of knowledge embeddedness by showing that the effective transfer of architectural and specific knowledge involves the prior sharing of a certain amount of this knowledge.

The purpose of this paper is to examine the relationship between open innovation (OI) and innovative performance, and to explore the moderating effect of knowledge structure, including component knowledge and architectural knowledge, on this particular relationship.

The proposed model was tested with regression analysis of data collected through a questionnaire survey of 231 employees of Chinese manufacturing firms.

The findings indicate that inbound OI is positively related to innovative performance and that outbound OI has an inverted U-shaped effect on innovative performance. By presenting empirical evidence of the moderating effects of component and architectural knowledge, our analysis of results demonstrates that the strong alignment between knowledge structure and OI results in superior innovative performance.

This study addresses the controversial issues brought up by previous studies with findings of an inverted U-shaped effect of outbound OI on innovative performance. By exploring the moderating effect of knowledge structure, the authors provide insights into how internal contextual factors in relation to organizational knowledge can affect the efficacy of the inbound and outbound OI on innovative performance.

We investigate the effects of technological capabilities on firms’ survival chances during market-fusing technological change. Our context is the matured U.S. machine tool industry. During the period of our study, 1975 through 1995, a drastic shift in demand conditions prompted the buyers of machine tools to demand more versatile products to improve their productivity. The advent of microprocessors enabled manufacturers to meet these demands by combining the functions of previously distinctive products. As a result, market segments fused and machine tool manufacturers in once disparate product categories came into direct competition with one another. We propose that incumbents with broader component and architectural capabilities will be better able to adapt to and hence survive market-fusing technological change. Our results, based on a panel data set of U.S. machine tool incumbents, support the value of broad component capabilities but reveal no adaptive advantage of architectural capabilities.

In this paper the aim is to concentrate on the impact that various types and combinations of knowledge can have on firms.

After a review of the literature the authors conceptually configure the extant understanding of knowledge over eight configurations. They illustrate each configuration with practical examples.

This configurational approach provides a basis for identifying potential complementarities and conflicts regarding the dynamics of organisational knowledge in competitive settings. It allows for a better understanding of knowledge in organisations and its link with competitive advantage.

The authors' argument can be used by managers to help them think of how knowledge is configured within their firm. By doing so they might better understand how this knowledge configuration might give them a competitive advantage.

This paper uses some traditional knowledge concepts but by proposing to take a configurational view of organisational knowledge, it proposes an original and meaningful way of examining the role of knowledge in the generation and sustainability of competitive advantage.

In the competitive global market, firms have to keep profit from innovation activities. A firm makes profits by offering products or services at a lower cost than its competitors or by offering differentiated products at premium prices that more than compensate for the extra cost of differentiation. The IC Package and Testing technology industries were the first high technological industry to build in Taiwan. The Package and Testing industries in Taiwan adopted competitive innovation activities to become stronger. In our study, we want to know how innovation activities influence a firm operating in the IC Package and Testing industries. Our study used a questionnaire and Likert five‐point scale to survey the innovation activities, customer and feedback in innovation performance in the IC Package and Testing industry. The wafer level chip size packing technology in our study indicates the innovation activities. Because we need to compare the difference between the wafer level chip size packing technology and wire bonding technology to recognize innovation and how the innovator and customer were influenced. Our conclusions are described below: (1) When the innovator adopts innovation activities that can be maintained using experiments and knowledge, using machine and decision variables more quickly will produce success; (2) Innovators should adopt innovation activities that focus on customers that use knowledge and experimentation, training time and cost. If an innovation forces customers to spend much time and cost to learn new technology or applications, the innovation will not be adopted; (3) Innovators that create innovation performance higher than his customers must also consider the impact upon their customers. We have to remind innovator to focus on why their customers have a different level of evolution in the same innovation activities.

The purpose of this paper is to build a System Dynamics model to reveal the structure and dynamics of knowledge coupling affecting firms' innovation results in the digital context.

Drawing on the recombined view of innovation, this paper divides knowledge coupling into two dimensions: component knowledge coupling and architectural knowledge coupling. Then, the authors build a system dynamics model to identify the interaction of knowledge coupling factors and use the professional Vensim PLE to conduct simulation analysis to capture the dynamic interaction of motivation factors in knowledge coupling system.

The results show that both technology resources and digital dynamic capability play positive effects in the mechanism of knowledge coupling influencing firms' innovation results, while organizational inertia negatively affects the process of knowledge coupling to achieve innovation outcomes.

This study develops a holistic system dynamics model to reveal and elaborate on the complex dynamic mechanism of knowledge coupling impacting firms' innovation results in the context of digitization and provides a theoretical reference for companies to effectively adopt digital technology to carry out knowledge coupling strategy.

The purpose of this paper is to investigate the performance impact of supplier involvement, based on the knowing processes and contingencies of knowledge-based view. Ambidextrous innovations (i.e. exploitative innovation and exploratory innovation) are taken as intermediary processes. Furthermore, product smartness is considered to clarify boundary conditions.

The ordinary least squares regression was conducted, based on the two-source data collected from 125 high-tech firms in China.

Ambidextrous innovations positively mediate the relationship between supplier involvement and financial performance. Product smartness weakens the indirect impact via exploratory innovation but not exploitative innovation.

This study reveals the knowledge application and recombination mechanisms of ambidextrous innovations to mediate between supplier involvement and financial performance. It also highlights digital encapsulation function of product smartness as a contingent factor.

The purpose of this paper is to facilitate understanding of the interaction between tacit knowledge and innovation.

The paper addresses the puzzle related to the impact tacit knowledge has on innovation. It appears that tacit knowledge has both negative and positive effects on innovation. The authors argue that solving this puzzle might find its solution in moving away from a one‐dimensional view of both tacit knowledge and innovation. Hence, they develop a typology of tacit knowledge to facilitate our understanding of the interaction between different types of tacit knowledge and different types of innovation. In conducting an aspect of a cybernetic theory of tacit knowledge and innovation, the authors develop a number of propositions for the influence different types of tacit knowledge have on different types of innovation.

The authors' argument is that different types of tacit knowledge hold different potential abilities for different types of innovation. The negative effect (a decrease in number of innovations) found in the tacit knowledge's conservative element might be explained in that the lower level of experience are more tied up in rule, procedures and analysis, than is the case for higher levels of experience.

In developing a typology of tacit knowledge and relating it to different types of innovation, the paper contributes to a new understanding of the complexity between tacit knowledge and innovation.