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This study aims to investigate the contribution of knowledge-intensive business services firms to small- and medium-sized manufacturers’ digital servitization journeys, addressing the standardization versus customization dichotomy of services and solutions provision.

To identify the challenges that small- and medium-sized firms must face in the digital servitization journey and the role that knowledge-intensive business services firms may play in the innovation processes, the authors conduct a review on two still unrelated literature streams and develop a longitudinal single-case study, with a particular focus on knowledge generation mechanisms.

Digital servitization is a particularly challenging transformational journey for minor firms. Knowledge-intensive business services firms can act as sources, facilitators, and carriers of knowledge, and they can orchestrate further contributions of other external partners and firms.

The paper contributes to theory describing the roadmap and the role of external service providers in digital servitization journeys of smaller firms’, that are frequently excluded from mainstream research although being the backbone of European economies.

Digital servitization in minor manufacturing firms requires a long-term orientation and a multi-stage roadmap. Mixing standardized technology-based solutions and complementary professional services, knowledge-intensive business services firms can significantly contribute to lowering the journey’s uncertainties, operational complexity, and costs.

The paper sheds lights on how the collaboration between knowledge-intensive business services firms and small manufacturers generates novel knowledge and capabilities that contribute to takle the challenges of the different stages of the digital servitization roadmap.

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.

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.

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.

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.

A paucity of studies has used a microfoundation lens to examine servitization processes in internationalized knowledge-intensive business service (KIBS) companies. The research aims to bridge this gap by considering knowledge sharing as a form of both codified knowledge and informal feedback knowledge; it also assesses whether the adoption of knowledge transfer and translation practices in a servitization process positively moderates the effect of knowledge transformation on knowledge sharing for internationalized KIBS companies.

By adopting a microfoundation lens, the research offers an empirical analysis to identify the relations between codified and tacit knowledge in servitization processes within internationalized KIBS companies. The study is based on 326 respondents from 30 KIBS companies. A multiple regression analysis was used for hypotheses testing.

The authors found significant relations among the use of electronic documents in the servitization process (formal codified knowledge), personal advice in servitization (informal feedback knowledge) and knowledge sharing in internationalized KIBS companies. Findings also support the indirect effect assumed in the hypothesis between knowledge transformation and knowledge sharing in internationalized KIBS companies, which is positively moderated by the adoption of cross-cultural knowledge practices in the servitization process.

To the best of the authors’ knowledge, this research provides the first conceptual model of the use of a microfoundation lens to examine knowledge sharing in internationalized KIBS companies. The micro level features individual knowledge sharing in the servitization process, while the meso level focuses on knowledge transformation in KIBS companies and the adoption of knowledge transfer and translation practices in the servitization process.

Among the existing literature, transformational leadership (TL), organizational culture (OC) and work–life balance (WLB) act as determinants of service innovation (SI). Specifically, the authors combine TL, OC and WLB into a model that clarifies these variables' influence on SI, particularly technological knowledge-intensive business services (T-KIBS).

A cross-sectional survey of 282 respondents from T-KIBS in Santa Catarina (Brazil) was conducted. The study used structural equation modeling (SEM) to test hypothesized relationships between the variables.

The results suggest a strong alignment of culture, leadership and WLB in T-KIBS. Therefore, it is shown that when the culture is strong and focused on SI, supporting the practices of employees, the transformative leaders can contribute with the same direction of actions supporting both WLB and SI. Likewise, the WLB is underpinned by cultures offering their employees support, well-being, creativity and innovation incentives.

The relationship between WLB and innovation is still emerging in research, not clearly defined in literature. Therefore, this study brings new and more in-depth information about these dimensions and their interrelations that influence SI. In addition, this conceptual framework has implications for practitioners not previously contemplated by the mainstream literature on KIBS.

Based on the socio-technical systems theory, this study aims to investigate the impact of management innovation (MI) on organisational performance (OP), as well as the mediating role of technology (TEC) use and service innovation (SI) in linking MI and OP.

The research data was derived from 163 knowledge-intensive business services firms and analysed through structural equation modelling using SmartPLS software.

This study found a significant impact of MI on OP. The analysis also revealed that TEC use and SI influence OP and that MI influences performance indirectly through TEC use and SI.

This research reinforces the role of MI in firms aiming at improving their performance. The findings of this study suggest that managers’ regular initiatives in management practices, processes and structures influence the enabling role of TEC use and SI on OP.

Since not every MI lead to the planned performance, this research contributes to the literature on the influence of MI on OP by providing empirical evidence on the role of TEC use and SI on OP. TEC use and SI serve as complementary mediators. Higher levels of MI directly increase OP but also increase TEC use and SI, leading to OP.

This paper aims to investigate the impact of Industry 4.0 (I4.0) technologies on knowledge creation for innovation purposes by assessing the relationships among the variety of I4.0 technologies adopted (breadth I4.0), the penetration of these technologies within the firm’s value chain activities (depth I4.0) and the mediating role of both internal (inter-functional (IF)) and external [with knowledge-intensive business services (KIBS)] collaborations in this process.

The study employed a quantitative research design. By administering a survey to entrepreneurs, chief operation officers or managers in charge of the operational and technological processes of Italian manufacturing firms, the authors collected 137 useful questionnaires. To test this study's theoretical framework and hypotheses, the authors ran regression and mediation analyses.

First, the results highlight the positive link between breadth I4.0 and depth I4.0. Moreover, the results show the key role played by increased collaboration among the firm’s business functions and by relationships with KIBS in creating knowledge to innovate processes and products when I4.0 technologies are adopted.

The variety of I4.0 technologies adopted enables a firm to use such technologies in various value chain activities. However, the penetration of I4.0 into the firm’s value chain activities (depth I4.0) does not per se directly imply the production of new knowledge, for which a firm needs internal collaboration among different business functions, in particular with the production area, or collaboration with external partners that favor I4.0 implementation, such as KIBS.

To achieve innovation goals by creating new knowledge, especially in the manufacturing industries, firms should encourage internal and external collaboration when I4.0 technologies are adopted. Moreover, policy makers should not only consider fiscal incentives for the adoption of such technologies, but also encourage the building of networks between adopting firms and external actors.

The study is one of the first attempt that provides empirical evidence of how I4.0 enables the creation of knowledge to innovate processes and products, highlighting the relevance of collaboration both within the company and with external partners.

The purpose of this paper is to identify and describe the influence of the knowledge base (KB) of the company on driving forces of innovation processes in knowledge-intensive services (KIS) and to compare the level of innovativeness of the final services.

The paper investigates through qualitative research 11 KIS organisations with different KB.

The research results identified and described the influence of the KB on driving forces of innovations processes and its results in companies with four newly identified KBs (analytical, synthetic, symbolic and compliance).

Further research, based on a larger number of companies, is needed to confirm the results of this research and to complement the effect of the KB on driving forces of innovation.

This research can help organisations understand how to develop strategic plans and new ideas for innovative services depending on the KB of the organisation.

The description of successful innovation processes and results in several leading companies presented in the study may help other companies in identifying knowledge-integration practices to improve performance and innovation processes that support multiplicity, productivity and creativity.

The study systemised the sources of new ideas for innovation in companies with different KB, several driving forces of innovation were identified and how these forces are affected by each KB; lastly, innovation results were compared in companies with different KB.

Digital service innovation (DSI) is a type of technological innovation that is recognized in practice in the innovation structure of companies. Given the breadth of digital technologies that enable digital services and the variety of these services, analysis is needed to discern the nature of these services, as well as the process that culminates in co-innovation. The literature on DSI is fragmented and spread across multiple research areas. This fragmentation impedes conceptualization of the elements that constitute DSI. This paper describes the nature of DSI through the process and elements of initiation, adoption and routinization of DSI in the context of digital service platforms (DSPs).

This paper presents a single exploratory case study of a provider of a leading digital solution in customer relations. The data analysis is based on abductive reasoning.

The paper conceptualizes the nature of DSI and describes the process and elements of DSI (phases, actors, functions and interactions). It contributes to building a common language for DSI research in service management. The analysis shows that DSI in DSPs is synonymous with co-innovation. This paper offers insight into how co-innovation occurs, using hybrid agile methodologies with the coordination of multiple actors and multilateral interactions.

The originality and value of the study reside in its conceptualization and analysis of what is meant by DSI. The components of the service and the technological requirements for not only provision but also ideation and development appear to be inseparable. The study unveils the mechanisms that turn a digital service solution into a co-innovative proposal. This knowledge can facilitate scalability in digital services.

This study aims to dissect firm knowledge into two main types: internal firm knowledge (knowledge workers) and external firm knowledge (relational knowledge with other firms). This study aims to investigate how each type affects the productivity of the firms. This study also examines how this effect differs among Egyptian firms in the agriculture, manufacturing and service sectors.

The authors use firm-level data in Egypt on the sectoral level. The properties of instrumental variables regression using two-stage least-squares estimation are adopted to overcome endogeneity and omitted variable bias in the empirical estimations.

The study’s findings reveal that the effects of internal and external knowledge on the firm productivity are sector-specific; knowledge-workers and relational knowledge are two times more effective for agriculture than manufacturing and service firms; external knowledge plays a vital role in increasing productivity relative to internal knowledge for the manufacturing sector; finally, internal and external knowledge has the same effect on the service firms.

This research adds to the body knowledge-based theory of the firm by examining the effects of internal and external knowledge on the firms’ productivity. In particular, the paper differentiates this effect across three sectors: agriculture, manufacturing and services. This paper also suggests a novel empirical methodology to address endogeneity and omitted variable bias in this literature of firm knowledge and productivity.

This research explores how subsidiary embeddedness in different networks, both internal and external to the firm, contributes to the innovation of the service multinational corporation (MNC). Specifically, the authors analyze the different effects of networks on MNC’s subsidiaries performing competence-creating or competence-exploiting innovation activities, in the context of the service industry. The present study analyzes the data of 178 foreign-owned subsidiaries in the service sector performing innovation in Spain. The results of data analysis at two points in time show that external and internal embeddedness have a positive impact on the subsidiary innovation. Moreover, external embeddedness has a major positive influence on the competence-creating rather than on the competence-exploiting activities, while the internal embeddedness is equally important for both types of innovation. Therefore, this study contributes to further our understanding of how subsidiaries’ linkages affect innovation of the service MNC.