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Article
Publication date: 16 May 2019

Shoaib Abdul Basit and Kehinde Medase

The combination of different knowledge sources has been considered conducive for innovation performance. While the literature has advanced regarding the combination of…

Abstract

Purpose

The combination of different knowledge sources has been considered conducive for innovation performance. While the literature has advanced regarding the combination of knowledge inputs as in internal and external research and development (R&D), the evolvement of knowledge blend from customers and competitors has also received substantial attention. The purpose of this paper is to delineate the sources of information from the customers into private and public and examine their direct effect on firm-level innovation. While the extant literature is mixed regarding this, no clear-cut results have emerged yet on the effect of knowledge combination from the private and public customers with internal R&D and human capital on innovation activities. This study, however, shed more lights on the inconclusiveness of the effect of knowledge diversity on firm-level innovation.

Design/methodology/approach

Using the microdata from the German Community Innovation Survey 2013, the authors employ a binary instrumental variable treatment model with Heckman selection, a suitable strategy to estimate binary variables to cope with a possible endogeneity issue.

Findings

The paper demonstrates that knowledge from customers in the private and public sector, and competitors are positively and significantly associated with innovation. The authors find evidence of a positive and significant effect of the combination of firm internal knowledge competencies with information from the public sector. In contrary, the blend of knowledge competencies with information from customers in the private sector and information from the competitors results in decline to innovation. The results also show that the blend of internal R&D with knowledge source from the customers in the public sector appears to have a stronger influence in the manufacturing sector than services. The results offer strong evidence of the positive link between knowledge diversity and firm-level innovation performance.

Practical implications

The results have significant managerial implications on the role of the blend of different sources of information in supporting a compelling internal knowledge development to optimise innovation performance.

Originality/value

This study is foremost to focus on knowledge sources from the customers in the public and private sector and its relationship with R&D and human capital in supporting a successful introduction of innovation.

Details

European Journal of Innovation Management, vol. 22 no. 4
Type: Research Article
ISSN: 1460-1060

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Book part
Publication date: 24 June 2015

Sandra Corredor, Clemente Forero and Deepak Somaya

This paper examines the extent to which different sources of ideas for innovation are associated with novelty of innovation outcomes. We measure the novelty of product…

Abstract

This paper examines the extent to which different sources of ideas for innovation are associated with novelty of innovation outcomes. We measure the novelty of product innovation using three well-established categories, ranging from highly novel new-to-world products to new-to-firm products that are essentially imitative, with products that are new-to-country (but not the world) being an intermediary category. In turn we investigate how knowledge derived from different external and internal (within-firm) sources of ideas can help firms increase innovation with different degrees of novelty. Our empirical analyses are conducted on a large sample of manufacturing firms from the South American emerging market of Colombia and show that many of the same sources of knowledge – such as scientific sources, production departments and managers – are associated with higher innovation in all three categories of novelty. However, some sources – notably external clients and internal interdisciplinary groups – are more significantly associated with more novel innovation than imitation. The implications of these findings for the literatures on innovation and imitation, and innovation by emerging market firms are discussed.

Details

Emerging Economies and Multinational Enterprises
Type: Book
ISBN: 978-1-78441-740-6

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Article
Publication date: 25 August 2020

Dragana Radicic

There is a dearth of empirical research on the impact of external knowledge search on innovation performance in different categories of service firms. This study explores…

Abstract

Purpose

There is a dearth of empirical research on the impact of external knowledge search on innovation performance in different categories of service firms. This study explores the effectiveness of the breadth of external search on product and process innovations in German firms. In particular, the author modelled a non-linear relationship between the breadth of knowledge and product and process innovations.

Design/methodology/approach

Drawing on the Mannheim Innovation Panel (MIP) data for the German service firms in the period 2014–2016, the author reported findings from a bivariate probit model which took into account mutual interdependence between product and process innovations. Moreover, the model was separately estimated for knowledge-intensive business services (KIBS) and other services. For comparative purposes, the author also estimated the model for manufacturing firms.

Findings

Empirical findings uniformly indicated an inverted U-shaped effect of the breadth of knowledge on both product and process innovations. Furthermore, the results demonstrated that using up to three knowledge sources increases the probability of a joint implementation of product and process innovations. These findings hold for both KIBS firms and other services. However, those service firms that focussed on a single type of innovation experienced diminishing returns to external knowledge when exploiting more than one source of knowledge. These results indicated that a simultaneous introduction of different types of innovation required diverse knowledge sources. In contrast, when focussing on a single type of innovation, service firms experienced diminishing returns when multiple sources were used. However, this finding was only partially found for manufacturing firms. Accordingly, this study’s findings provided support for the demarcation approach, insofar as the breadth of knowledge had a heterogenous impact on innovation in manufacturing relative to service firms.

Originality/value

Previous studies on the breadth of knowledge search mostly examined its influence on innovation performance without separately analysing manufacturing and service firms. The present study focussed on service firms that were further divided into KIBS and other service firms. By investigating potentially non-linear relationships between knowledge breadth and product and process innovations, it illustrated how different innovation strategies were affected by a diverse pool of external knowledge sources.

Details

Business Process Management Journal, vol. 27 no. 1
Type: Research Article
ISSN: 1463-7154

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Article
Publication date: 7 April 2014

Nieves L. Díaz-Díaz and Petra de Saá Pérez

The purpose of this paper is to study the external sources of knowledge that better exploit internal knowledge in order to innovate.

Abstract

Purpose

The purpose of this paper is to study the external sources of knowledge that better exploit internal knowledge in order to innovate.

Design/methodology/approach

A balanced panel of 1,266 firms that respond to the Survey of Business Strategies for a five-year period was used, which represents a total of 6,330 observations.

Findings

The influence of the absorptive capacity on new products is significant, with an inverted U-shaped relationship. The interaction between external sources of knowledge and firm ' s absorptive capacity has a negative effect on innovation up to a certain level (substitution effect), after which that interaction improves the innovation of firms, displaying a complementary effect.

Practical implications

Firms with excess of internal sources of knowledge do not obtain better innovative results because overtime firms tend to inertia and need external sources of knowledge to obtain new knowledge. Firms must be conscious that the effect on innovation of using a strategy of external knowledge acquisition could be different depending on their internal knowledge base level. Thus, those firms that select their strategies to combine knowledge appropriately will have better results.

Originality/value

This paper reveals that the positive effect of internal sources of knowledge on innovation decline after it reaches a high level because those firms with strong absorptive capacity may enter a state of organizational inertia that reduces their innovation. This research enhances the importance of identifying each of the external knowledge sources likely to be used, since their influence on innovation differs depending on the level of internal knowledge. Finally, this study is based on panel data models, which allows us to control unobservable heterogeneity improving earlier studies that had to rely on cross-sectional data.

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Article
Publication date: 26 June 2018

Julia Nieves and Gonzalo Diaz-Meneses

The purpose of this study is to identify the role played by external knowledge sources and intra-organizational collaboration as determinants of innovation in hotel firms…

Abstract

Purpose

The purpose of this study is to identify the role played by external knowledge sources and intra-organizational collaboration as determinants of innovation in hotel firms. It proposes that local knowledge sources and intra-organizational collaboration determine the probability of producing incremental innovations, and that non-local knowledge sources determine the introduction of radical innovations.

Design/methodology/approach

Descriptive statistics made it possible to evaluate the importance of each of the external sources as the origin of ideas for innovation. Principal component analysis was used to find homogeneous groups based on the different knowledge sources contemplated. Multiple regression analysis was used to determine which variables predict a hotel’s capacity to introduce innovations.

Findings

The findings suggest a dissociation between innovations adopted by directly incorporating the specific knowledge provided by external agents and innovations that require the mediation of intra-organizational collaboration for their development.

Research limitations/implications

Future qualitative studies can provide data that would considerably improve the understanding of how innovation processes are produced in hotel companies based on the use of external knowledge and how hotel firms develop spaces to exchange and combine internal knowledge.

Practical implications

Hotel firms can adopt innovations by incorporating specific knowledge from external companies or by developing their own innovations based on information gathered from external agents or events (e.g. customers, attending trade fairs and professional conferences). The transformation of this information into innovations requires the establishment of internal communication channels that foment employees’ collaboration and exchange of information.

Originality/value

The study provides empirical evidence for the relevant role played by both external agents and intra-organizational relationships as sources of knowledge to foster innovation in hotel firms. External agents are classified as local and non-local sources, and their effect on innovation is analyzed, distinguishing between incremental and radical innovations.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 6
Type: Research Article
ISSN: 0959-6119

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Book part
Publication date: 10 August 2016

Ulf Andersson, Suma Athreye and Georgios Batsakis

We argue that a foreign-based R&D subsidiary of a multinational enterprise (MNE) can potentially source knowledge from three diverse knowledge networks, namely (i) external

Abstract

We argue that a foreign-based R&D subsidiary of a multinational enterprise (MNE) can potentially source knowledge from three diverse knowledge networks, namely (i) external knowledge network of the home country, (ii) external knowledge network of the host country, and (iii) internal (MNE) knowledge network. Drawing on the relative costs and benefits associated with the process of synergistic knowledge, this study examines whether a substitutive or a complementary relationship exists when two of the aforementioned networks collaborate in order to generate new knowledge at the subsidiary level. Our study’s sample is based on a survey questionnaire addressed to foreign-based R&D subsidiaries of Fortune 500 companies. We assess the existence of complementarity/substitutability using the “production function approach.” Our results indicate that a complementary relationship exists between external knowledge network of the host and the home country, as well as between external knowledge network of the host country and internal knowledge network. On the other hand, external knowledge network of the home country and internal knowledge network form a substitutive relationship. Our study offers a more comprehensive view of the diverse sources/knowledge networks that R&D subsidiaries are sourcing knowledge from when compared to existing research. We also specify and account for the costs/benefits involved in knowledge sourcing and thereby detect possible substitution/complementarity between different sources of knowledge. So far, there has been limited to nonexistent research into the diversity of knowledge networks of R&D subsidiaries and the examination of potential substitutabilities and complementarities. Hence our empirical study contributes to the development of this particular research stream.

Details

Perspectives on Headquarters-subsidiary Relationships in the Contemporary MNC
Type: Book
ISBN: 978-1-78635-370-2

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Article
Publication date: 9 October 2017

David Doloreux and Ekaterina Turkina

This paper aims to explore the effects of multiple external sources of knowledge and of the use of winemaker consultants on innovation in the Canadian wine industry.

Abstract

Purpose

This paper aims to explore the effects of multiple external sources of knowledge and of the use of winemaker consultants on innovation in the Canadian wine industry.

Design/methodology/approach

The data for the study are taken from an original survey of wine firms in Canada covering the 2007-2009 period. The survey was carried out by computer-assisted telephone interviews, and it was addressed to winery firms that are engaged in growing grapes and producing wine.

Findings

The results show that the use of winemaker consultants positively affects all forms of innovation. At the same, as far as external knowledge sources are concerned, marketing sources positively affect all types of innovation, while research sources and general sources have a positive influence on particular forms of innovation. The results also show that winemaker consultants interact with other knowledge sources. Nevertheless, there are important nuances with regard to which type of knowledge sources is more compatible with the use of winemaker consultants for which type of innovation.

Originality/value

To date, there is no empirical evidence of the extent to which the use of external winemaker consultants and external knowledge sources interact together and what are their impacts on the introduction of different forms of innovation.

Details

Journal of Knowledge Management, vol. 21 no. 6
Type: Research Article
ISSN: 1367-3270

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Article
Publication date: 13 January 2021

Abdullah Fahad AlMulhim

This study aims to analyze the effect of external and internal sources of knowledge on frugal innovation. Moreover, it investigated how this relationship is…

Abstract

Purpose

This study aims to analyze the effect of external and internal sources of knowledge on frugal innovation. Moreover, it investigated how this relationship is weakened/strengthened by the moderation of innovation capabilities.

Design/methodology/approach

This empirical study’s data were taken from 288 small and medium enterprises (SMEs) by using a questionnaire survey. To analyze this data, analysis of a moment structures software (AMOS) was used. Structural equation modeling was conducted to test the hypothesis and the slope test investigated moderation.

Findings

The study results showed the significant effect of internal and external sources of knowledge on frugal innovation. Moreover, the results highlighted that the moderating role of innovation capabilities strengthens this relationship.

Research limitations/implications

The SMEs of “Saudi Arabia” were considered for this study. Among these, this paper only focused on enterprises owned by Saudi citizens. Moreover, the data were collected from 288 SMEs. Therefore, future studies can be conducted from any other country with larger sample size. This study has used moderation of innovation capabilities and future studies can use information credibility as a moderating variable.

Originality/value

Previously, many studies have highlighted the importance of knowledge for innovation, but the effects of knowledge sources from the perspective of SMEs and emerging markets remain unexplained. Very limited studies have explored the relation of knowledge sources with frugal innovation. This study first examines the moderating role of innovation capabilities between “internal and external knowledge sources” and frugal innovation. Moreover, this research reveals the SMEs of Saudi Arabia and its sector of frugal products.

Details

International Journal of Innovation Science, vol. 13 no. 3
Type: Research Article
ISSN: 1757-2223

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Article
Publication date: 6 November 2017

Gabriele Santoro, Demetris Vrontis and Alberto Pastore

The purpose of this paper is to analyze the role of external knowledge in the innovation process of firms in the food and beverage (F&B) industry and the effects of two…

Abstract

Purpose

The purpose of this paper is to analyze the role of external knowledge in the innovation process of firms in the food and beverage (F&B) industry and the effects of two external knowledge sourcing modes on new product development (NPD) performance.

Design/methodology/approach

The paper applies a quantitative approach, relying on data from 157 Italian firms operating in the F&B industry to test the hypotheses through OLS regression models.

Findings

Results suggest that the surveyed firms actively engage in open innovation with strong ties with market-based sources. Moreover, the authors found that market-based sources are associated with income from incremental innovation and time to market, while science-based sources are associated with income from radical innovation. Finally, the authors found that the R&D intensity enhances the benefits of the above external knowledge sourcing modes.

Originality/value

Despite the large amount of studies assessing the effects of external knowledge sourcing on performance in the open innovation field, few studies focused on a specific industry, especially with regard to F&B. Moreover, this paper considers different types of NPD performance measures given that different external knowledge sourcing modes exert different effects.

Details

British Food Journal, vol. 119 no. 11
Type: Research Article
ISSN: 0007-070X

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Book part
Publication date: 19 August 2017

Raphael Bar-El, Ilanit Gavious, Dan Kaufmann and Dafna Schwartz

The literature documents a shortage in the supply of external funding to small- and medium-sized enterprises (SMEs) in general and to innovative SMEs in particular. This…

Abstract

The literature documents a shortage in the supply of external funding to small- and medium-sized enterprises (SMEs) in general and to innovative SMEs in particular. This study separates cognitive from financial constraints on innovative SMEs’ growth opportunities. Using data gathered through in-depth interviews with the CEOs of 115 SMEs, we reveal that over and above a problem with supply, there exists a twofold problem on the demand side. Specifically, we document that there is a tendency for these companies to avoid approaching external funding sources, especially ones that gear their investments toward innovation. Our results reveal a cognitive bias (over-pessimism) affecting the entrepreneurs’ (lack of) demand for external financing over and above other firm-specific factors. CEO tenure — our proxy for human and social capital — is significantly lower (higher) in firms that did (did not) pursue external funding. This finding may provide some support for our hypothesis regarding the cognitive bias and over-pessimism of the more veteran CEOs who have had negative experiences regarding recruiting external resources. The impact of this entrepreneurial cognition is shown to be economically detrimental to the enterprise. Nevertheless, the negative effects are not limited to the micro level, but have implications at the macro level as well, due to under-realization of the potential for employment, productivity, and growth of the firms comprising the vast majority of the economy.

Details

Human Capital and Assets in the Networked World
Type: Book
ISBN: 978-1-78714-828-4

Keywords

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