Complementarity between technology make and buy in innovation strategies: evidence from Belgian manufacturing firms.

This paper characterizes the innovation strategy of manufacturing fims and examines the relation between the innovation strategy and important industry-, firm- and innovation-specific characteristics using Belgian data from the Eurostat Community Innovation Survey. In addition to important size effects explaining innovation, we find that high perceived risks and costs and low appropriability of innovations do not necessarily discourage innovation, but rather determine how the innovation strategy is formulated. The paper then focuses on the determinants of the decision of the firm to produce technology itself (Make) or to source technology externally.(Buy). One striking observation is that most firms use a combination of Make and Buy strategies. Small firms more likely restrict their innovation strategy to an exclusive make or buy strategy, while large firms are more likely to combine both internal and external knowledge acquisition in their innovation strategy. An interesting result that highlights the complementary nature of the Make and Buy decisions, is that firms for which internal information is an important information source for innovation are more likely to combine internal and external sources of technology. We find this to be evidence of the fact that in-house R&D generates the necessary absorptive capacity to profit from external knowledge acquisition. We also find that the effectiveness of different mechanisms to appropriate the benefit of innovations and the internal organizational resistance against change are important determinants of the firm's technology sourcing strategy.Manufacturing; Strategy;

The relationship between knowledge management, innovation and firm performance: evidence from Dutch SMEs

This article investigates the relationship between knowledge management (KM), innovation and firm performance of smaller firms (less than 100 employees), based on a panel of more than 400 Dutch firms. Regression analyses explain the variations in sales turnover growth from various measures of KM strategies. We distinguish between KM input, throughput and output (or innovation) strategies. We find that KM input strategies related to knowledge acquisition are positively related to sales turnover growth. In contrast, we do not find a relation between KM throughput and KM output (innovation) measures and firm performance. The results emphasize the importance of both knowledge absorption and knowledge creation to the success of innovative efforts in small firms. This is an updated version of Scales-paper N200322.

Effects of technological innovation on knowledge acquisition inside the organization : a case study

This paper examines the effect(s) of technological innovation in companies’ key relationships on knowledge acquisition and knowledge exploitation. We propose, building on and contributing to the existing views of knowledge-based theories, that knowledge acquisition stimulates firms’ activities, transforming internal processes and creating competitive advantage. It presents the main premises of a conceptual model for understanding the processes and the impacts of knowledge transfer, acquisition and dissemination inside the organization. This is demonstrated within a case study approach, which explores the successful introduction of technological change within an enterprise setting. The case study is conducted in a high‐technology company, on the technology information sector, based in Portugal. The results indicate that technological innovation seems to be associated with indirect effects on knowledge generated in companies and increased network connections, which, in turn, are associated with increased knowledge‐based innovation. Knowledge acquisition, in turn, is positively associated with knowledge exploitation for competitive advantage through new product development and technological uniqueness. The study explores the impact of the introduction of an innovation, under the aegis of a government innovation stimulus programme, and its ensuing impacts on the firm’s trajectory of technological change. The study is particularly interested in the so called indirect impacts of innovation, especially on the effects on knowledge acquisition and its exploitation. Knowledge is an intangible asset and its dynamics are difficult to evaluate. The paper intends to contribute to the development of a new assessment approach, based on the consideration of appropriate indicators and variables collected through the case studies. The impacts of innovation go beyond the introduction of tangible products or processes, but methodologies for the evaluation of those (indirect) impacts are scarce. However, assessment of these impacts is fundamental to fully apprehend the consequences of innovation and technological change, and, as a consequence, to improve the decision processes regarding the design and implementation of projects or programs that stimulate innovation.Fundação para a Ciência e a Tecnologia (FCT

Examining the critical interplay of knowledge acquisition and integration capabilities in project oriented service firms

While past knowledge-based approaches to service innovation have emphasized the role of knowledge integration in the delivery of customer-focused solutions, these approaches do not adequately address the complexities inherent in knowledge acquisition and integration in project-oriented firms. Adopting a dynamic capability framework and building on knowledge-based approaches to innovation, the current study examines how the interplay of learning capabilities and knowledge integration capability impacts service innovation and sustained competitive advantage. This two-stage multi-sample study finds that entrepreneurial project-oriented service firms in their quest for competitive advantage through greater innovation invest in knowledge acquisition and integration capabilities. Implications for theory and practice are discussed and directions for future research provided

Dezvoltarea şi perfecţionarea relaţiei inovaţie – capital intelectual – cerinţă a performanţei organizaţionale în firmele româneşti

In a knowledge economy, innovation is the competitiveness key and the acquisition and dissemination of knowledge in social systems is the result of collaboration between individuals and communities of interest. Managers can not measure the innovative capacity of the organization, but they may improve his performance. Managers can improve the rate and quality of innovation and competitiveness on the market. Intellectual capital through its three forms - human capital, organizational capital and structural capital, it makes organizational performance. The purpose of this article is to highlight the relationship between innovation, intellectual capital and organizational performance.innovation, entrepreneurship, human capital, intellectual capital, structural capital, performance.

External knowledge acquisition and innovation output: an analysis of the moderating effect of internal knowledge transfer

Numerous studies highlight the advantages of accessing knowledge from outside the firm as a means of enhancing the firm’s innovation efforts. However, access to external knowledge is not without organisational problems, including rejection of external knowledge by firm members or difficulties in applying such knowledge to the firm’s operations. Based on the knowledge management literature, this paper analyses the conditions within the firm that favour external knowledge acquisition, and focuses on internal transfer as a key variable for the successful integration of external knowledge in the innovation process. Our results demonstrate that internal knowledge transfer intensifies the influence of external knowledge acquisition on innovation output. Specifically, achieving an environment within the firm that favours knowledge integration into the innovation process depends to a large extent on the willingness of knowledge users to share and assimilate knowledge, and on th

Complementarity between technology make and buy in innovation strategies: Evidence from Belgiam manufacturing firms

This paper characterizes the innovation strategy of manufacturing firms and examines the relation between the innovation strategy and important industry-, firm- and innovation-specific characteristics using Belgian data from the Eurostat Community Innovation Survey. In addition to important size effects explaining innovation, we find that high perceived risks and costs and low appropriability of innovations do not discourage innovation, but rather determine how the innovation sourcing strategy is chosen. With respect to the determinants of the decision of the innovative firm to produce technology itself (Make) or to source technology externally (Buy), we find that small firms are more likely restrict their innovation strategy to an exclusive make or buy strategy, while large firms are more likely to combine both internal and external knowledge acquisition in their innovation strategy. An interesting result that highlights the complementary nature of the Make and Buy decisions, is that, controlled for firm size, companies for which internal information is an important source for innovation are more likely to combine internal and external sources of technology. We find this to be evidence of the fact that in-house R&D generates the necessary absorptive capacity to profit from external knowledge acquisition. Also the effectiveness of different mechanisms to appropriate the benefits of innovations and the internal organizational resistance against change are important determinants of the firm's technology sourcing strategy.Innovation, research and development, make or buy decision, complementarity

Brand innovation and social media: knowledge acquisition from social media, market orientation, and the moderating role of social media strategic capability

The study examines the relationships between knowledge acquisition from social media, two forms of market orientation (proactive and reactive), social media strategic capability, and brand innovation strategy in the context of China’s online technology industry. Analysis of 357 online technology ventures, created during the past 6 years, suggests that brand innovation is affected by both knowledge acquisition from social media and market orientation. Social media strategic capability positively affects brand innovation and acts as a moderator between knowledge acquisition, market orientation, and brand innovation. It further enhances both types of market orientations in achieving brand innovation, suggesting that on social media, a customer’s needs, both expressed and latent (or unexpressed), can be identified more comprehensively than that of the traditional setting. Hence, the context of social media provides a different set of rules for competition and strategic behavior, which online technology ventures should note. Implications are useful to improve the current understanding of social media brand innovation strategy, here in China’s dynamic social media scene

Knowledge Management through the Lens of Innovation and Labour Productivity in a Knowledge Based Economy

The 21st century brings along the recognition for the necessity to understand and measure the activity of knowledge management, for which reason organizations and system organizations, together with decisional governmental factors, do their best in order to develop policies that would promote these benefits. Knowledge management (KM) implies any activity regarding the capture and the diffusion of knowledge within the organization. In our study we analyze the impacts and dimensions of KM upon the innovation and labour productivity within the organization, and how KM affects the firm’s innovative performance. A key component of knowledge management is to provide access to stored knowledge components to improve decision making and to facilitate knowledge acquisition by the user.knowledge-based economy, knowledge management, knowledge, explicit and implicit knowledge, innovation, productivity, diffusion of knowledge