Complementarities and Substitutabilities Among Knowledge Sourcing Strategies and Their Impact on Firm Performance

Knowledge sourcing strategy (KSS) is regarded as a key determinant of successful Knowledge Management (KM). However, prior research on how KSSs can improve firm performance has produced inconsistent results. This may be due to inadequate consideration of complementary and substitutable relationships in KSSs. Whereas previous studies have assessed the impact of individual KSS on firm performance, in practice firms adopt several different KSSs simultaneously. Drawing on the Knowledge-based View (KBV) and the complementarity theory, this study investigates the impact of multiple KSSs, in terms of sourcing type and origin, to develop three sets of hypotheses on complementarity and substitutability. Survey data collected from 372 firms in Korea are analyzed to test the hypotheses using the supermodularity and submodularity functions. The results confirm complementary relationships between system- and external-oriented, between person- and internal-oriented, and among system-, person-, and internal-oriented strategies, as well as substitutable relationships between person- and external-oriented strategies. Interestingly, different knowledge sourcing patterns between knowledge intensive and non-knowledge intensive environments are revealed. This study expands KM research by developing a new conceptual framework of KSSs and employing advanced analytical approaches to explore the relationships between KSSs and firm performance. It also offers valuable practical suggestions for managers in selecting successful combinations of KSSs using a judicious combination of system- and external-oriented, of person- and internal-oriented, or of system-, person-, and internal-oriented strategies

The innovation value chain

Innovation events - the introduction of new products or processes - represent the end of a process of knowledge sourcing and transformation. They also represent the beginning of a process of exploitation which may result in an improvement in the performance of the innovating business. This recursive process of knowledge sourcing, transformation and exploitation we call the innovation value chain. Modelling the innovation value chain for a large group of manufacturing firms in Ireland and Northern Ireland highlights the drivers of innovation, productivity and firm growth. In terms of knowledge sourcing, we find strong complementarity between horizontal, forwards, backwards, public and internal knowledge sourcing activities. Each of these forms of knowledge sourcing also makes a positive contribution to innovation in both products and processes although public knowledge sources have only an indirect effect on innovation outputs. In the exploitation phase, innovation in both products and processes contribute positively to company growth, with product innovation having a short-term ‘disruption’ effect on labour productivity. Modelling the complete innovation value chain highlights the structure and complexity of the process of translating knowledge into business value and emphasises the role of skills, capital investment and firms’ other resources in the value creation process

Heterogeneity in R&D cooperation: an empirical investigation

This work explores the roles of potential simultaneity and heterogeneity in determining firms' decisions to engage in R&D collaboration, using a sample of Italian manufacturing firms. Partnerships with other firms, research institutions, universities and other small centres are considered jointly by applying a multivariate probit specification. This allows for systematic correlations among different cooperation choices. The results support the hypothesis that the four cooperation decisions are interdependent. The decision to cooperate in R&D differs significantly depending on the cooperation options. Public support, the researcher intensity and the size are all of importance in determining R&D alliance strategies

Foreign subsidiaries and technology sourcing in Spain

Firms acquire external technological knowledge via different channels. In this paper we compare the technology sourcing via R&D outsourcing, R&D outsource offshoring, domestic cooperation for innovation and international cooperation for innovation of foreign subsidiaries and domestic firms. Because the different technology sourcing choices are potentially correlated we apply a multivariate probit specification which allows for systematic correlations among the different choices. The results show that the different technology sourcing choices are indeed interdependent and that foreign subsidiaries show a different pattern of external technology sourcing. Compared to affiliated domestic companies, foreign subsidiaries show a smaller propensity for external technology sourcing via R&D outsourcing from independent firms in the host country, for R&D outsource offshoring, and for international cooperation for innovation. In contrast, foreign subsidiaries show a greater propensity for domestic cooperation for innovation

Foreign subsidiaries and technology sourcing in Spain

Firms acquire external technological knowledge via different channels. In this paper we compare the technology sourcing via R&D outsourcing, R&D outsource offshoring, domestic cooperation for innovation and international cooperation for innovation of foreign subsidiaries and domestic firms. Because the different technology sourcing choices are potentially correlated we apply a multivariate probit specification which allows for systematic correlations among the different choices. The results show that the different technology sourcing choices are indeed interdependent and that foreign subsidiaries show a different pattern of external technology sourcing. Compared to affiliated domestic companies, foreign subsidiaries show a smaller propensity for external technology sourcing via R&D outsourcing from independent firms in the host country, for R&D outsource offshoring, and for international cooperation for innovation. In contrast, foreign subsidiaries show a greater propensity for domestic cooperation for innovation

Foreign subsidiaries and technology sourcing in Spain

Firms acquire external technological knowledge via different channels. In this paper we compare the technology sourcing of foreign subsidiaries and domestic firms looking at domestic R&D outsourcing, international R&D outsourcing, domestic cooperation for innovation and international cooperation for innovation. We use data from the Spanish Technological Innovation Panel (PITEC) for the years 2005-2009 for 10,206 innovative firms operating in Spain. We apply a multivariate probit specification which allows for systematic correlations among the different choices. The results show that the different technology sourcing choices are interdependent and that foreign subsidiaries show a different pattern of external technology sourcing. Compared to affiliated domestic companies, foreign subsidiaries show a smaller propensity for external technology sourcing via R&D outsourcing from independent firms in the host country, for international R&D outsourcing, and for international cooperation for innovation. In contrast, foreign subsidiaries show a greater propensity for domestic cooperation for innovation. However, foreign subsidiaries are not a homogenous group in this respect

Exploring the Sources of Skill-Biased Technical Change: A Firm Performance Perspective

WP 2002-11 May 2002JEL Classification Codes: O12; O15; O31; O32; O33The literature on skill-biased technical change has examined the role of skills in the adoption of new technology. Here the focus is on the creation of new technology, that is, innovation. Low skill firms are hypothesized to benefit less from innovation activities, particularly collaborative research and development (R&D). In other words, skills and innovation are complementary. Complementarities associated with innovation may generate persistent differences in firm behavior and performance. Results from a panel of manufacturing firms indicate that technical skills reinforce the profitability effects of innovation and R&D collaboration. Skills, collaboration, and innovation form a system of interdependent activities

Manager gender, entrepreneurial orientation and SMEs export and import propensities: evidence for Spanish businesses

This paper investigates the role of manager gender in SMEs’ decisions to get involved in exporting and importing activities, using a sample of 1,405 Spanish SMEs. We borrow insights from international entrepreneurship theories and feminist theories to set testable hypotheses regarding how managerial gender and entrepreneurial orientation (proactiveness, risk-taking and innovativeness) may influence SMEs export and import propensities. Using a bivariate probit model and controlling for other managerial and business characteristics, results reveal that there are not significant disparities in exporting propensities between men- and women-run businesses. However, female-led SMEs show a lower importing propensity, in comparison to male-led counterparts. In addition, the three entrepreneurial orientation dimensions (proactiveness, risk-taking and innovativeness) are important drivers for participating in overseas markets, and do not depend upon the manager gender. This work provides new empirical evidence on the comparison between men- and women-run SMEs as regards export/import behavior and thus, it contributes to improve our knowledge on the role of gender in SMEs internationalization. The role of manager’s gender in SMEs import propensity has not been investigated so far, and this is the main novelty of our research.We acknowledge fnancial support from Grant ECO2017-86793-R funded by MCIN/AEI/10.13039/501100011033 and by “ERDF A way of making Europe”; from Generalitat Valenciana (project PROMETEU/2019/095); from Spanish Ministry of Economy and Competitiveness (ECO2014-55745-R) and from Instituto de Estudios Fiscales del Ministerio de Hacienda (Spanish Treasury Ministry). Funding for open access charge: Universidad de Málaga / CBUA