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1 – 10 of over 32000Rajshekhar (Raj) G. Javalgi, Andrew C. Gross, W. Benoy Joseph and Elad Granot
The dramatic growth and international scope of knowledge‐intensive business services (KIBS) are evident in emerging markets such as China and India. Nations, like firms, seek to…
Abstract
Purpose
The dramatic growth and international scope of knowledge‐intensive business services (KIBS) are evident in emerging markets such as China and India. Nations, like firms, seek to capitalize on their available resources and capabilities (e.g. people, technology, skills) in order to build and maintain core competencies in certain industry sectors. This paper has the following objectives: to discuss the classification of KIBS, to marshal conceptual and statistical evidence on KIBS in major emerging markets, to compare and contrast selected major emerging markets in regard to their KIBS activities, and to discuss policy implications.
Design/methodology/approach
In this conceptual paper, extant literature is reviewed and discussed pertaining to the KIBS sectors. Several existing data sources are used to assess the comparative performance of major emerging markets in the KIBS sectors.
Findings
The emphasis is on finding comparative longitudinal statistics that are useful for comparison and contrast among major emerging markets. The analysis indicates that while the major emerging markets are building competitive advantage by focusing on knowledge‐intensive business services, their progress differs sharply. For example, China shows the lead, followed by India, Brazil, Russia, Mexico, Turkey, and Indonesia. Smaller nations lag behind these in most indicators. It is evident that leading major emerging nations have not reached parity with highly industrialized countries.
Research limitations/implications
The results show ranking and contribution of various major nations in the global knowledge economy, but additional time series and analysis are needed to assess comparative rankings. However, the classification and the indicators illustrated here offer a panoramic, comparative picture over the past decade. Using international business theories, research can develop statistical models to explain foreign market entry strategies of knowledge‐intensive service firms.
Practical implications
The paper is of value to managers considering entry and/or expansion into major emerging markets in various sub‐sectors of knowledge‐intensive sectors. The specific industry and function pursued by a firm need to be identified and matched up with host nation characteristics (e.g. more software design and pharmaceutical research in India v. more manufacturing design and R&D facility in China). The paper also provides guidelines to policy makers to sustain their country's competitive advantage in the KIBS sectors.
Originality/value
The paper looks at knowledge‐intensive business services in major emerging markets. It offers both conceptual contributions and statistical evidence that key nations differ in their activities in regard to such high‐level and complex service offerings.
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Ronnie Figueiredo, João J.M. Ferreira, Rogério Guerra Silveira and Alvaro Teixeira Villarinho
The purpose of this paper is to analyse the propensity for innovation and co-creation in service companies in receipt of knowledge intensive business services (KIBS) type services…
Abstract
Purpose
The purpose of this paper is to analyse the propensity for innovation and co-creation in service companies in receipt of knowledge intensive business services (KIBS) type services through their intensive incorporation of knowledge.
Design/methodology/approach
In order to achieve this study objective, the authors first carried out a literature review in order to specify the scope of the construct; second, the authors applied a survey based on the “Spinner model”; third, the authors undertook research on KIBS clients and restricted the results to this population sample; and fourth, based on the validated and applied models deriving from the base construct, the authors presented the results obtained.
Findings
This concludes that the “Spinner” model is valid for explaining the propensity for innovation and co-creation in companies receiving KIBS. The results demonstrate evidence of innovation processes as a result of the intensive application of knowledge associated with co-creation and knowledge transfers.
Research limitations/implications
This provides managers with a better understanding of the barriers that may obstruct the implementation of co-creation and knowledge transfers. Hence, the variables analysed may guide managers in defining and planning innovation strategies. Furthermore, this enables each company receiving such services to validate them and establish indices for the innovation propensity of specialist (knowledge intensive) service providers within the framework of benchmarking exercises.
Originality/value
This study sets out a new means of analysing the propensity for innovation and the co-creation of knowledge by companies making recourse to knowledge intensive services. From the theoretical point of view, this defines a new construct and a means of classification for companies supplying services designed for their propensity for innovation and co-creation. From the practical perspective, this study provides the companies subject to research with the opportunity to perceive their respective position in relation to other companies. In addition to this, ranking companies in such a way may drive the need to develop new knowledge for future co-creation and innovation processes.
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Edoardo Baldoni, Lisa De Propris and Dimitri Storai
This paper aims to analyse to what extent Italian industrial districts (IDs), with their traditional manufacturing specialization, experimented a territorial servitisation process…
Abstract
Purpose
This paper aims to analyse to what extent Italian industrial districts (IDs), with their traditional manufacturing specialization, experimented a territorial servitisation process in terms of spread of specifically professional and technological knowledge-intensive business services’ activities over the period 2012–2018.
Design/methodology/approach
This paper articulates knowledge-intensive business services activities in two types, technological knowledge-intensive business services and professional knowledge-intensive business services. It tracks their growth and their co-location with manufacturing sectors in Italian IDs by means of firm employment data and location quotients. Firm employment data is extracted from Statistical Archive of Active firms (ASIA) data set provided by Italian National Institute for Statistics (ISTAT). ASIA data is matched with ISTAT territorial identification of Italian local labour systems and IDs.
Findings
In 2018, Italian IDs featured, next to their traditional over-specialisation in manufacturing activities, an under-specialisation in knowledge-intensive business services’ activities. Nevertheless, the dynamic analysis carried out over the period 2012–2018 shows that IDs firm employment in technological knowledge-intensive business services and professional knowledge-intensive business services grew at a higher rate than the national average.
Originality/value
The novelty of this paper is to distinguish between technological knowledge-intensive business services and professional knowledge-intensive business services and to measure the presence and the growth of these two different types of knowledge-intensive business services in Italian IDs.
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The growing importance of knowledge and innovation in the present era motivated the author to study knowledge-intensive business services (KIBS) in general and the case of India…
Abstract
Purpose
The growing importance of knowledge and innovation in the present era motivated the author to study knowledge-intensive business services (KIBS) in general and the case of India in particular. The purpose of this paper is to track in brief the strength of India’s economy lying in growth of knowledge-intensive services (KIS), which if harnessed properly can lead to its transition to a knowledge economy. More specifically, the paper tries to address two important questions: first, what constitutes KIS and KIBS? And second, how has KIBS been performing in India?
Design/methodology/approach
The paper makes use of secondary sources of data including various reports, books, journals and statistical tools. An attempt has been made in this paper to review those studies which try to define KIS and KIBS. The data analysis of KIBS in the case of India has been done for the period 2004-2005 to 2011-2012 for which information was available from National Accounts Statistics published by Central Statistical Organization.
Findings
The paper concludes that no unanimously accepted definition of KIBS has been given so far. In the Indian context it is defined as; “business services include services like computer-related services, R&D, accounting services and legal services and renting of machinery in order of importance (shares) as per India’s National Accounts”. An analysis of performance of KIBS in India shows that among KIBS there are two T-KIBs (with a technology base), namely IT and ITeS, and that R&D services occupy the first and second position in India’s gross domestic product (GDP), originating from business services (KIBS). R&D services registered the highest average annual growth rate followed by computer-related services, renting of machinery, legal services and accounting and auditing services during the seven-year period from 2004-2005 to 2011-2012. However, the compound annual growth rate (CAGR) was highest in the case of R&D services followed by renting of machinery, computer-related services, legal and accountancy and auditing services. KIBS registered a CAGR of 13.04 per cent, which was higher compared to overall GDP growth rate (at 7.36 per cent), and also compared to the CAGR of the real estate and ownership of dwellings and business services segment as a whole (7.62 per cent). Therefore, there is a need to tap the potential of all these KIBS, i.e. knowledge-intense high-tech services (KIHTS) and knowledge-intense marketing services taken in the study through policy initiatives. There is also a need to deal with emerging issues and challenges in KIBS, especially in KIHTS.
Originality/value
Although there is empirical research on the KIS and KIBS of European Economies, KIBS in India has not received enough research attention. This paper will therefore mainly focus on the performance of KIBS in India.
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Despite increasing interest in offshoring of knowledge-intensive services, it is still undetermined as to whether the sourcing of services truly creates the anticipated value for…
Abstract
Purpose
Despite increasing interest in offshoring of knowledge-intensive services, it is still undetermined as to whether the sourcing of services truly creates the anticipated value for clients. Moreover, even less is known about whether value is created for service providers in the process beyond the general service trade. This lack of knowledge is due to the challenges of capturing value creation, the unique production process of the services, and the impact of offshoring on both value creation and the production process. The purpose of this paper is to study offshored service production processes of knowledge-intensive services in order to identify direct and indirect value creation for clients as well as service providers in the process.
Design/methodology/approach
The paper applies a multiple case study method and studies one conglomerate with three offshored service production processes. The chosen method allows for the investigation of the service production process and indirect/direct value creation within the process.
Findings
The study finds that there is direct value creation for the client and the service provider towards the end of the production processes as expected. However, more importantly, it finds additional indirect value creation in various production stages. The indirect value is reflected in enhanced understanding of problems and own operations for the client and increased knowledge about clients and problem-solving approaches for the service provider.
Research limitations/implications
This study contributes to offshoring literature by providing a comprehensive understanding of value creation in service offshoring for clients as well as service providers. It also contributes to the service management literature as a study of direct and indirect value creation in services, particularly within the production process of the services.
Practical implications
The study allows practitioners to gain insights on the value creation logic of offshored services and the value created beyond that logic. More specifically, it allows client firms to gain details of various values and benefits of service offshoring and service provider firms to gain a focused perspective on value creation in their own service production that can lead to competitive advantages.
Originality/value
The paper is novel and original through its approach to study offshoring from a value creation logic perspective, including not only the client but also the service provider perspective. It also applies a service production process perspective that is novel in offshoring literature.
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Ian Douglas Miles, Veronika Belousova and Nikolay Chichkanov
The substantial growth in literature on knowledge-intensive business services (KIBSs) has thrown light on their contributions to innovation and innovation systems. This paper is…
Abstract
Purpose
The substantial growth in literature on knowledge-intensive business services (KIBSs) has thrown light on their contributions to innovation and innovation systems. This paper is the first of a set that examines major debates and conclusions to have emerged from this growing body of evidence.
Design/methodology/approach
This is a review essay, which also presents relevant statistics. It addresses definitional issues and controversies, and sets out basic trends and characteristics of the KIBS industries. The focus is mainly on KIBS firms, though the production of similar services in other types of organisation is also considered.
Findings
Many of the conclusions of an earlier (2005) review in this journal remain valid, though difficulties in capturing these activities in official statistics mean that there are many issues that demand closer inspection. Understanding the role and future prospects of KIBS will also require looking beyond the literature that focuses just on KIBS industries.
Research limitations/implications
This study involves literature review and statistical analysis. Future work would benefit from involvement of practitioners and users of KIBS.
Practical implications
More explicit consideration of KIBS in statistical frameworks is still required, and novel approaches to data conceptualisation and production should be explored.
Originality/value
The growing literature on KIBS, and its implications for understanding the roles and future development of the firms and their relationships to innovation systems, requires systematic analysis. Available statistics have been brought together, and this paper also reflects critically on the trajectories of research on these topics.
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Dorothea Kossyva, Georgios Theriou, Vassilis Aggelidis and Lazaros Sarigiannidis
This study aims to explore talent retention in knowledge-intensive industries by investigating the mediating processes between the existence and application of human resource…
Abstract
Purpose
This study aims to explore talent retention in knowledge-intensive industries by investigating the mediating processes between the existence and application of human resource management (HRM) and employee turnover. Toward this end, drawing on the conservation of resources and job demands–resources theories, a three-dimensional model is examined, which includes the relationship between HRM, knowledge management (KM) and change management (CM), as well as their relationship with employee engagement and employee turnover intention.
Design/methodology/approach
The proposed research model has been studied with a sample of 168 talented employees in over six European countries, using a quantitative approach, involving the structural equation modeling method. All data were gathered by a multidimensional questionnaire via prolific, an academic crowdsourcing platform.
Findings
Results indicated that knowledge-intensive services firms may achieve higher talent retention through the interaction of HRM with KM and CM practices, which may lead to enhanced employee engagement.
Research limitations/implications
Possible limitations of the study include the relatively small sample size, the self-rate questions for the collection of data and the use of cross-sectional data.
Practical implications
To retain their talented employees, organizations should identify ways to improve their HRM, CM and KM practices. In addition, HR practitioners ought to include their talented employees in all organizational change and KM processes and create mechanisms that successfully support knowledge acquisition, creation, sharing, retention and codification.
Originality/value
To the best of the authors’ knowledge, this is the first study to examine various factors of retaining talented employees in knowledge-intensive services. Furthermore, the study took place in six European countries, i.e. UK, Poland, Italy, Germany, Portugal and Greece, where the research on talent retention is very limited.
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Elina Jaakkola, Thomas Meiren, Lars Witell, Bo Edvardsson, Adrienne Schäfer, Javier Reynoso, Roberta Sebastiani and Doris Weitlaner
The extant new service development (NSD) literature tends to assume that the key practices for NSD identified in one context apply for all services, and has failed to sufficiently…
Abstract
Purpose
The extant new service development (NSD) literature tends to assume that the key practices for NSD identified in one context apply for all services, and has failed to sufficiently consider differences in NSD between service types. The purpose of this paper is to explore the nature of NSD across different service types.
Design/methodology/approach
An extensive, cross-sectoral survey was conducted in seven countries. Data from 1,333 NSD projects were analyzed to empirically derive a service typology and examine if and how different types of services vary in terms of NSD resources, practices, methods, and results.
Findings
Based on six service characteristics, the study identifies four service types: routine-intensive, technology-intensive, contact-intensive, and knowledge-intensive services. The study also identifies specific NSD resources, practices, methods, and results that are prevalent across the service typology. The evidence indicates that the use of advanced practices and methods differs dramatically between service types.
Practical implications
The paper enables practitioners to expand their current understanding on NSD by providing insights into the variability of NSD across service types. The results suggest that either service-type-specific models or a configurable model for NSD should be developed.
Originality/value
This study provides one of the first empirically derived service typologies for NSD. The study demonstrates that NSD resources, practices, methods, and results differ across service types, thereby challenging the “one size fits all” assumption evident in current NSD research.
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Ingi Runar Edvardsson, Guðmundur Kristján Óskarsson and Susanne Durst
This paper aims to present findings on outsourcing practices in small service firms in Iceland, where the prime focus is on knowledge-intensive service firms.
Abstract
Purpose
This paper aims to present findings on outsourcing practices in small service firms in Iceland, where the prime focus is on knowledge-intensive service firms.
Design/methodology/approach
To gain information on the scope and reason for outsourcing, telephone and online surveys were used. In total, 802 firms participated in the surveys, which were conducted in the period 2009-2018.
Findings
The results show that knowledge-intensive firms outsource far more than other service firms and are also more likely to have an outsourcing strategy. The grounds for increased outsourcing are cost reduction and strategic reasons, such as a focus on core competency and the search for external knowledge. In comparison with other firms, knowledge-intensive firms are increasingly outsourcing cleaning, security services, canteen and transportation, IT processes, human resource management, training and consulting. Additionally, managers of these firms select suppliers more on the basis of cost and quality. They also realize more cost savings as a consequence of outsourcing. Outsourcing had a very limited effect on employment in the firms, while cost reduction was achieved in 48.3 per cent of the firms involved.
Research limitations/implications
The findings are in line with the resource-based theory and, interestingly, this is not limited to knowledge-based firms, but to a large portion of service firms as well.
Originality/value
This is the first in-depth study on outsourcing patterns in knowledge-intensive firms, which uses theoretical classification in empirical analysis.
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Abdelkader Daghfous, Nicholas Jeremy Ashill and Michel Roger Rod
The purpose of this paper is to examine the knowledge transfer processes of knowledge intensive business service firms by focusing on the knowledge for customer, which is the…
Abstract
Purpose
The purpose of this paper is to examine the knowledge transfer processes of knowledge intensive business service firms by focusing on the knowledge for customer, which is the knowledge about the service provider's products and services, specifically “before‐sale” knowledge, and the transfer of this knowledge in order to develop customers.
Design/methodology/approach
The authors conducted an in‐depth qualitative study of the knowledge transfer process undertaken by a sample of six global knowledge intensive service firms, to use knowledge transfer as a means of customer development.
Findings
The results of this study suggest that customer absorptive capacity influences the role that knowledge for customers has in ultimately determining whether customer development will occur. Where tacit knowledge transfer occurs, it is restricted to loyal, high share customers. With respect to methods of transfer, the findings reveal that knowledge‐intensive business service firms transferring explicit knowledge utilise both formal and informal methods.
Research limitations/implications
Data collection was cross‐sectional and longitudinal research would have the benefit of examining how customer knowledge transfer changes over time during the customer development process (pre‐sale, during sale and post‐sale customer development). Future research studying other types of knowledge transfer, such as during‐sale and after‐sale knowledge transfer, are also encouraged.
Practical implications
Managers should be open to employing numerous types of media in transferring both explicit and tacit knowledge rather than restricting themselves to the normative “explicit‐formal‐media lean” versus “tacit‐informal‐media rich” categorisations in the literature.
Originality/value
Understanding the role of customer knowledge transfer in the development of existing organisational customers is particularly important in the context of knowledge intensive business service firms. The extant literature recognises that customer development efforts are critically important in increasing service adoption and firm performance but there exists a dearth of research on customer knowledge transfer in the context of professional service organisations.
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