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1 – 10 of 202This paper aims to explore how to build firm’s radical innovation capability from its own knowledge resources. It proposes the impact of knowledge base on radical innovation and…
Abstract
Purpose
This paper aims to explore how to build firm’s radical innovation capability from its own knowledge resources. It proposes the impact of knowledge base on radical innovation and outlines why and how appropriability regimes are important throughout the radical innovation capability development process.
Design/methodology/approach
Questionnaire and in-depth interviews were used to empirically test the relationship between knowledge base, appropriability regimes and radical innovation capability. To correct for potential endogeneity, a two-stage regression model was used to test the interaction effects
Findings
By examining 237 firms involved in R&D activities in high-tech manufacturing firms in China, this paper finds that when a firm have a deep knowledge base, strategic appropriability regime may reduce concerns about problems such as knowledge leakage and innovation appropriation associated with deep knowledge bases. In contrast, legal appropriability regime will also tend to strengthen the positive effect of knowledge breadth on radical innovation capability.
Research limitations/implications
In this study, self-reported measures are used because of their potential for concept specific accuracy; future research might wish to replicate our model and test it with objective data.
Practical implications
The paper includes implications for the fit between the existing internal knowledge base and the way a firm appropriates from its knowledge, and provides entrepreneurs and managers with direct implications about how to manage knowledge resources for radical innovation capability development.
Originality/value
This paper provides a more nuanced understanding of how knowledge base and value appropriability mechanisms jointly affect radical innovation capability development.
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Ma Concepción López‐Fernández, Ana Ma Serrano‐Bedia and Gema García‐Piqueres
This paper sets out to examine the factors that influence Spanish manufacturing and service firms to cooperate with universities on R&D.
Abstract
Purpose
This paper sets out to examine the factors that influence Spanish manufacturing and service firms to cooperate with universities on R&D.
Design/methodology/approach
A LOGIT regression model is used to verify the importance of certain variables, selected and constructed according to the literature review, to the decision to cooperate with universities. An empirical study is carried out using data from the Spanish 2000 Community Innovation Survey (CIS). The sample of study is 3,964 innovative manufacturing and service firms.
Findings
Firm size, spillovers, R&D intensity and operating costs influence both manufacturing and service firms in the same way in their decision to cooperate with universities on R&D activities. However, the variables relating to strategic and legal protection of innovations, as well as belonging to a foreign group have been shown to affect manufacturing and service companies differently.
Research limitations/implications
The analysis of the cooperation decision from the transaction cost economics approach is limited to operational costs and risks because of the type of data supplied by the CIS. A second limitation relates to the inability to use more recent data as, to date, the only CIS microdata published are from the year 2000.
Practical implications
The empirical results allow one to identify the characteristics of Spanish manufacturing and service firms that cooperate with universities.
Originality/value
The paper has explored the differences between manufacturing and service companies relating to the determinants of establishing R&D cooperation agreements with universities.
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Wenhong Zhang, Yapu Zhao, Longwei Tian and Dong Liu
The purpose of this paper is to explore how boundary-spanning demand-side search (BSDSS) fuels radical technological innovations as well as how innovation appropriability…
Abstract
Purpose
The purpose of this paper is to explore how boundary-spanning demand-side search (BSDSS) fuels radical technological innovations as well as how innovation appropriability moderates this relationship. In particular, based on Teece’s (1986) argument regarding the appropriability of innovation, the authors divide factors to influence innovation appropriability into two types: external institution related and internal capability related.
Design/methodology/approach
This study employs a survey methodology. Specifically, the authors collected a sample composed of 150 high-tech manufacturing Chinese firms.
Findings
Results show that BSDSS has a positive effect on radical technological innovations. Further, the authors find that dysfunctional competition and political ties negatively moderate the main effect, whereas firms’ legal and IPRs protection capabilities positively moderate the main effect.
Research limitations/implications
One major limitation is that the findings are based on data derived from Chinese firms, which may limit the generalization of the findings.
Practical implications
The findings suggest that firms competing Chinese market, both Chinese and foreign firms, should actively leverage BSDSS to boost radical technological innovations. Chinese firms should pay attention to the negative roles of appropriability hazards originating from external institutional environment. Foreign firms in Chinese market should be cautious on potential dysfunctional competition from local competitors, such as imitation and intelligence property violation, and enhance appropriability through building internal capabilities, such as legal and IPRs capabilities.
Originality/value
The study highlights the crucial roles of BSDSS in radical technological innovations, as well as the moderating roles of innovation appropriability. These results provide new insights into the drivers of radical technological innovations.
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Marco Ceccagnoli and Frank T. Rothaermel
This chapter explores the extent to which an innovator is able to capture innovation rents. After examining the two main drivers of such rents, the strength of the appropriability…
Abstract
This chapter explores the extent to which an innovator is able to capture innovation rents. After examining the two main drivers of such rents, the strength of the appropriability regime and the ownership of specialized complementary assets, the chapter examines how their interaction is so critical in affecting imitation, commercialization options, and firm performance. After reviewing the underlying conceptual framework and empirical evidence, and using a perspective that cuts across both time and industries, the authors then discuss the implications of innovation profits for the resources to be devoted to the discovery of new or improved product and processes.
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Marco Ceccagnoli and Frank T. Rothaermel
This chapter explores the extent to which an innovator is able to capture innovation rents. After examining the two main drivers of such rents, the strength of the appropriability…
Abstract
This chapter explores the extent to which an innovator is able to capture innovation rents. After examining the two main drivers of such rents, the strength of the appropriability regime and the ownership of specialized complementary assets, the chapter examines how their interaction is so critical in affecting imitation, commercialization options, and firm performance. After reviewing the underlying conceptual framework and empirical evidence, and using a perspective that cuts across both time and industries, the authors then discuss the implications of innovation profits for the resources to be devoted to the discovery of new or improved product and processes.
Recent research and practice have put a great deal of effort into finding efficient ways of managing and organizing to promote innovation within organizations. This study aims to…
Abstract
Purpose
Recent research and practice have put a great deal of effort into finding efficient ways of managing and organizing to promote innovation within organizations. This study aims to continue this trend in addressing issues related to knowledge transfer and protection through examining roles of absorptive capacity and appropriability regimes and the interplay between them. An appropriability regime can play a dual role when external knowledge and the knowledge‐base of the firm form the basis for absorptive capacity, which then contributes to innovation performance.
Design/methodology/approach
The study provides an empirical examination of the direct and moderating roles of appropriability regime regarding the above‐mentioned dual role. Data collected from 335 firms was utilized to perform regression analyses.
Findings
The empirical evidence suggests, first, that the strength of the appropriability regime has a positive effect on absorptive capacity (especially the acquisition of knowledge) together with good connectedness to external knowledge sources and high levels of internal R&D. In addition, support can be found for the idea of absorptive capacity and the appropriability regime being positively related to innovation performance. Both direct and moderating effects can be found, but they are slightly different for knowledge acquisition and application.
Originality/value
This study contributes to prior studies by producing empirical evidence on the relationships described above. An important issue is also that it departs from prior works by viewing an appropriability regime as a factor that can be affected by the firm (i.e. as a strategic tool), and not as a purely environmental or external factor.
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Sergio David Cuéllar, Maria Teresa Fernandez-Bajón and Felix de Moya-Anegón
This study aimed to examine the similarities and differences between the ability to analyze the environment and exploit new knowledge (absorptive capacity) and the skills to…
Abstract
Purpose
This study aimed to examine the similarities and differences between the ability to analyze the environment and exploit new knowledge (absorptive capacity) and the skills to generate value from innovation (appropriation). These fields have similar origins and are sometimes confused by practitioners and academics.
Design/methodology/approach
A review was conducted based on a full-text analysis of 681 and 431 papers on appropriation and absorptive capacity, respectively, from Scopus, Science Direct and Lens, using methodologies such as text mining, backward citation analysis, modularity clustering and latent Dirichlet allocation analysis.
Findings
In business disciplines, the fields are considered different; however, in other disciplines, it was found that some authors defined them quite similarly. The citation analysis results showed that appropriation was more relevant to absorptive capacity, or vice versa. From the dimension perspective, it was found that although appropriation was considered a relevant element for absorptive capacity, the last models did not include it. Finally, it was found that studies on both topics identified the importance of appropriation and absorptive capacity for innovation performance, knowledge management and technology transfer.
Originality/value
This is one of the first studies to examine in-depth the relationship between appropriation and absorptive capacity, bridging a gap in both fields.
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Collaboration for research and development (R&D) and innovation among various organizations can be beneficial and in some cases even imperative, but in order to realise the…
Abstract
Purpose
Collaboration for research and development (R&D) and innovation among various organizations can be beneficial and in some cases even imperative, but in order to realise the potential, effective management is required. Effective innovation requires firms to share their core knowledge, and simultaneously make sure that they will not lose their core knowledge and future competitive advantage. In line with this, this study aims to clarify the role of knowledge protection in relation to collaborative innovation endeavours.
Design/methodology/approach
This study approaches the knowledge protection and knowledge sharing issues through a literature review and subsequent empirical analysis of 242 Finnish companies.
Findings
The results indicate that when a firm has put effort in getting strong protection at its disposal, sharing knowledge with varying partners is more likely, which, in turn, improves innovation performance of the firm. It is not just about the strength of protection, but also – and even more importantly – using it efficiently that counts.
Research limitations/implications
The data are collected from one country only, with its specific features, and thus further research might reveal more on the studied phenomenon. Also utilising more detailed measures might reveal more.
Practical implications
This study augments both theoretical and managerial perspectives as it discusses a variety of protection mechanisms. In particular, it offers managers a new way of approaching the means of knowledge protection for innovation‐related collaboration.
Originality/value
This study shows that a wide range of knowledge protection mechanisms can be relied on, and that strategic use of these mechanisms improves knowledge sharing and innovation performance.
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Safal Batra, Sunil Sharma, Mukund R Dixit, Neharika Vohra and Vishal K Gupta
Industry appropriability – the degree to which firms in an industry can appropriate benefits from their innovations – is a crucial dimension of industry environment. Small and…
Abstract
Purpose
Industry appropriability – the degree to which firms in an industry can appropriate benefits from their innovations – is a crucial dimension of industry environment. Small and medium manufacturing enterprises (manufacturing SMEs), because of their limited resource base, tend to be especially sensitive to the appropriability conditions in their industry. The purpose of this paper is to understand the influence of industry appropriability on firm outcomes (innovativeness and performance), and posits technology orientation as a dynamic capability that helps firms overcome appropriability barriers in their industry.
Design/methodology/approach
Data were collected from 162 manufacturing SMEs in India. Multiple linear regression analysis was used to test the proposed hypotheses.
Findings
This study reveals that the perceived level of appropriability of manufacturing SMEs impacts their innovativeness. Further, findings also support technology orientation as a crucial firm-specific characteristic which enables firms to overcome unfavorable appropriability conditions. Technology orientation plays a significant role in mitigating the negative impact of lower appropriability conditions. Even when the patent regime is unfavorable, technology-oriented firms are able to innovate and perform better.
Practical implications
The findings suggest technology orientation as a strategic mechanism for manufacturing SMEs to respond to conditions of unfavorable appropriability regime.
Originality/value
This study elaborates the benefits of integrating industry-level and firm-level characteristics. Specifically, an attempt was made to extend the existing research on industry appropriability by bringing in the contingent effect of technology orientation. The context of manufacturing SMEs yielded several interesting insights.
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Suzanne E. Majewski and Dean V. Williamson
There is a tension between the literatures on incomplete contracting and transactions cost economics regarding the importance of ex post governance and the extent to which formal…
Abstract
There is a tension between the literatures on incomplete contracting and transactions cost economics regarding the importance of ex post governance and the extent to which formal theories of incomplete contracting capture salient aspects of exchange relations. In this paper, we empirically examine how firms structure joint R&D agreements to illuminate how contracts can be incomplete and how governance can matter. We employ a dataset of 96 contracts to construct a taxonomy of the types of mechanisms firms use in organizing collaborative R&D, and indicate how groups of mechanisms line up with various types of contracting hazards. The results suggest that the allocation of property rights over innovations at the time of contracting between R&D partners is an important aspect of contract design. But they also suggest that weak property rights admit scope for other dimensions of contract. In particular, the research indicates that while knowledge spillovers may give rise to appropriability hazards, efforts to contain or channel knowledge spillovers may enable joint venture members to strategically block other members’ follow-on commercialization or research. Firms design joint R&D governance mechanisms to balance spillover hazards and strategic blocking.