The formation of status asymmetric ties: a perspective of positive externality and empirical test

Previous studies have investigated the circumstances that motivate firms to form status asymmetric ties. However, these studies have mainly focused on firm attributes or environmental factors. Deviating from prior works, we propose that firms can take advantage of alliance portfolios to trade resources with potential partners’ status. Specifically, a firm that can access high-quality portfolio technological resources can better realize exchanges with partners’ status. The degree of positive externality depends on the relationships of focal firms with existing partners and their capabilities to utilize external knowledge resources. Data of alliances formed in the computer industry in the USA reveal that a focal firm is more likely to ally with a high-status partner if it can access high-quality portfolio technological resources. Such positive externality of portfolio technological resources is stronger when the focal firm has more repeated ties with its existing partners and when they utilize more external knowledge resources.     

Collaborative ties and ambidextrous innovation: insights from internal and external knowledge acquisition

ABSTRACT

Building collaborative ties has become an increasingly important strategy for influencing firms’ ambidextrous innovation in transition economies, we examine the relationship between collaborative ties and ambidextrous innovation—with a focus on the mediating effect of knowledge acquisition using firm-level data in China. The empirical results reveal several important findings. First, collaborative ties among partners have a positive effect on firms’ ambidextrous innovation. Second, collaborative ties among partners are more beneficial to the firm’s external knowledge acquisition than internal knowledge acquisition. Lastly, the mediating effect of internal knowledge acquisition on the relationship between collaborative ties and ambidextrous innovation of firms is higher than that of external knowledge acquisition. These findings contribute to the literature on ambidexterity theory. Moreover, these findings also extend our understanding of the importance of the integration of internal and external knowledge acquisition in collaborative relationships, and enrich knowledge management literature within the collaborative ties framework.     

The External Sourcing of Technological Knowledge by US Pharmaceutical Companies: Strategic Goals and Inter-organizational Relationships

This study of the organization of the discovery function by large US pharmaceutical companies (LPCs) examines an important knowledge acquisition strategy—external sourcing of compounds and technologies. Through a critical examination of the “capabilities” thesis in strategic management and of the theoretical conceptualization in organization studies of innovation networks, we undertake an in-depth qualitative analysis of the network relationships LPCs establish with biotechnology firms/public research laboratories. We additionally examine the motivations and degree of strategic intent of R&D managers involved in external knowledge sourcing. The paper identifies the tensions and contradictions in network relationships and indicates how these lead to changes in knowledge sourcing. This qualitative analysis is placed in its industry and technology context. This reveals both the pressures towards and the trends in external knowledge sourcing, as compared with in-house discovery. Extensive interviews with US LPCs and biotechnology firms provide a rare glimpse of how some of the most important actors in global innovation networks handle a significant new innovation strategy.     

Emerging firms in an emerging field: an analysis of patent citations in electronic-paper display technology

USPTO patent data covering the years 1994–2008 is used in this study to examine the citation networks of electronic-paper display technology. Our primary aim is to provide a better understanding of the ways in which emerging firms interact with, and learn from, technology diffusers. Two implications can be drawn from our analysis. Firstly, emerging firms within an emerging industry can enhance their technological capabilities through positive external learning activity. Secondly, despite the fact that technology diffusers have clear technological advantages, with the emergence of a new field, their influence within the network could potentially be decayed if they fail to remain proactive in terms of the absorption of available external knowledge.     

When does the diverse partnership of R&D alliances promote new product development? The contingent effect of the knowledge base

Diverse R&D alliance partnerships not only provide access to broad external knowledge but also bring considerable expenses caused by transaction costs and absorption problems. The effective utilization of external knowledge in developing new products is closely related to the internal knowledge base. This study examines how firms' knowledge base properties influence the relationship between diverse R&D alliance partnerships and NPD performance. We empirically find that increases in firms' knowledge complementarity reinforce the positive impact of diverse alliance partners on NPD performance, but increases in firms’ knowledge substitutability attenuate. These findings offer valuable managerial implications that firms should commit more seriously to their internal knowledge base so that they can achieve higher NPD performance when establishing R&D alliances with external actors.     

Network positioning and risk perception in servitization: evidence from the UK road transport industry

For manufacturing firms, the integration of advanced services into their customer offerings has become a crucial decision. Such commercial decisions require weighting the risks and rewards of implementing a business model based on advanced services. While academic experts acknowledge uncertainty of returns on investment despite potential advantages, research generally fails to address the challenge of calculating the actual risks involved in ‘servitization’. This paper seeks better understanding of managers’ risk perception and of servitization implications for strategic partnerships and network positioning, while considering the impact of factors such as entry barriers, technological knowledge and position in the supply chain (SC). Qualitative evidence is drawn from an industrial case study involving firms in the UK’s road transport industry: 14 in-depth interviews with senior executives from seven companies (manufacturers, operators, technology providers). During interviews, a payment card exercise measured risk perception and willingness to take strategic ‘make-or-buy’ decisions. Results suggest that implementing advanced services is perceived as a high-risk strategy, especially when firms lack in-house technological knowledge. However, collaborative strategic partnerships within supply chain networks can mitigate this risk and prove crucial to building entry barriers against external competitors. Based on these findings, implications for network positioning are developed.     

Personal and business networks within Chilean biotech §

Agglomerations and proximities between firms are positively related to the creation of knowledge networks and the innovation performance of firms. Despite the long history of the study of proximities, only recently have interactions between multiple proximities and multiple networks been studied with respect to the economic performance of clustered firms. The role of personal relations in the creation of business relations between firms needs to be studied further. This study proposes a framework for the creation of business relations that combines the proximity framework, the strategic alliances literature, and multiplexity of social networks. The study uses a novel dataset on the ego-networks of personal relationships between owners or managers and the ego-networks of business relations of biotech firms in Chile. It is shown that the existence of previous personal relations between individuals from two organisations positively affects the probability of creating a business relationship between them.     

Sources of Inter-Firm Heterogeneity in Accessing Knowledge-Creation Benefits Within Technology Clusters

We build on recent literature to highlight the distinction between knowledge-diffusion and knowledge-creation benefits of technology clustering and argue that firms located in technology clusters will have differential access to the latter. To explain the antecedents of such differential access, we first argue that clustering gives rise to three knowledge-creation benefits: easier identification of potential knowledge partners with complementary knowledge, easier initiation of knowledge partnerships and increased effectiveness of knowledge partnerships. Subsequently, we develop a conceptual model and propositions that focus on a cluster firm's awareness of knowledge assets inside the cluster, attractiveness as a knowledge partner and ability to benefit from knowledge partnerships to explain differential access by firms to these three knowledge-creation benefits that clustering provides. This study highlights the theoretical significance of distinguishing externality-type benefits of technology clustering from benefits that firms need to actively pursue, and discusses implications for firms' location decisions.     

Innovative knowledge sharing,supply chain integration and firm performance of Australian manufacturing firms

A number of reports show that innovation in Australian manufacturing firms is declining. We propose that better knowledge sharing practices can assist these firms to become more innovative. In this paper, we examine this proposition by empirically testing the relationship between knowledge sharing practices within and between trading partners as a framework for integration, and testing for the effect of these practices on firm performance. Data were collected from 418 organisations in the manufacturing industry in Australia to assess the degree to which innovative knowledge sharing practices provide a competitive advantage to Australian firms. Structural equation modelling approach to data analysis was used. It was found that the three innovative knowledge sharing constructs (internal knowledge integration, knowledge integration with customers and knowledge integration with suppliers) were strongly inter-related, providing a case for knowledge-based integration of firms with their trading partners. Further, these three exogenous constructs collectively explained about a third of the variance in the endogenous construct (firm performance). The relationships identified provide support for the efficacy of knowledge-based collaboration as an innovation promoting higher firm performance levels. Managers of manufacturing firms in Australia specifically, and others more generally, can use this as a way to conceptualise how their firms can develop internal integration and collaborative relationships with their trading partners.     

Heterogeneous Partners,R&D cooperation and corporate innovation capability: Evidence from Chinese manufacturing firms

In this paper, we examine the differential impact of cooperation with heterogeneous partners on firms' innovation capabilities. We use the number of joint patent applications of Chinese manufacturing firms from 2008 to 2018 to measure cooperation with different types of partners and the number of corporate patents to measure the innovation capability of firms. The results indicate that R&D cooperation with other enterprises, universities, and research institutions all have a significantly positive impact on the innovation capability of enterprises. However, R&D cooperation with universities or research institutions has a higher positive impact on innovation capability than that with other firms. Different internal and external factors moderate the relationship between heterogeneous partners and the innovation capability of firms. Specifically, firms with higher absorptive capacity will benefit more from R&D cooperation with corporate partners. In contrast, in industries with higher market concentration or where firms are at the technological frontier, cooperation with universities will positively impact their innovation capabilities. Further research demonstrates that absorptive capacity has a more positive moderating effect when the cooperation is between firms in the same industry, compared to R&D cooperation between firms in different industries.     

Beyond Regional Clusters: On the Importance of Geographical Proximity for R&D Collaborations in a Global Economy—the Case of the Flemish Biotech Sector

When internal knowledge bases are insufficient for developing innovations, companies tend to collaborate with external R&D partners. According to a long-standing literature on “clusters”, “industrial districts”, “local production systems” and “regional innovation systems”, geographical proximity between innovation partners is considered a precondition for inter-organizational collaborations: proximity is said to facilitate trust, the transfer of tacit knowledge and the intensity of interactions. This article investigates the importance of geographical proximity for R&D collaborations between biotech firms and their innovation partners. Are geographically close innovation partners likely to collaborate more intensely? Studies of the Flemish biotech industry shed light on this question. Regression analyses combined with qualitative interview data reveal that geographical proximity has become less important for inter-organizational collaborations. Owing to lower communication and transportation costs, innovation partners can easily collaborate even when they are not situated close to each other. This leads us to conclude that globalization transforms inter-organizational collaborations.     

In the vanguard of openness: which dynamic capabilities are essential for innovative KIBS firms to develop?

Abstract

In this paper, we examine whether the innovativeness of knowledge intensive business services (KIBS) firms is affected by their inherently high rate of interactions with clients and partners. Even if such firms do not deliberately follow an open innovation strategy, they are exposed to knowledge flows from other organisations. A particularly interesting issue is the connection between openness and the need to develop dynamic capabilities for distinct phases of knowledge processing. Building on resource-based views, we have developed hypotheses on the respective importance of KIBS firms’ dynamic capabilities and their inclination to engage in open innovation. Since clients and partners can contribute to activities especially at the beginning and end of the innovation value chain, KIBS should consider focusing on developing a ‘conceptualizing’ capability for translating raw ideas into marketable service propositions. The importance of this capability is confirmed by our regression analyses on survey data from 125 KIBS in the Netherlands. By contributing to the literature on KIBS and open innovation, we shed light on strategically balancing capability development and external capability sourcing.     

Qualifizierungsinitiative Oberflächentechnik: Angebot,Bedarf, Netzwerke

The current project “Knowledge Transfer Surface Technology”, which is realised on behalf of the German federal Ministry of Education and Research (BMBF) by the VDI Technology Center Duesseldorf, aims at the overcoming of innovation barriers non‐technical kind within the range of modern surface technology in particular with (small and medium‐sized) enterprises. Part of the project is a qualification initiative on surface technology. It concerns first to make the specialized educational offers more accessible, to determine the qualification need as well as conceive qualification networks and give appropriate suggestions. Results are transported and spread to interested persons by conferences, over an InterNet portal as well as by means of intensive public relations and a series of publications on knowledge transfer surface technology. In the sense of strategic alliances, numerous partners and institutes with relevant authority are included into the activities, assigned partial analyses as well as obtained for specialized meetings.     

The Complementary Dynamic Effects of Clusters and Networks

Over the past decades, researchers and policymakers around the world have been paying attention to the concept of clusters of related firms, industries and institutions, with a view to the presumably positive effects of clustering for learning, innovation and the productivity of firms. More recently, a network approach to learning and innovation emerged, which emphasizes strategic, preferential, repeated and at the same time temporary knowledge exchange (i.e. dynamic cooperation) between firms and other organizations. This may, however, go at the expense of the attention for the important, different and complementary learning effects of the mainly spatial process of concentration and clustering of related firms, industries and institutions. This paper argues that clusters and networks are two separate concepts that both merit attention, especially—albeit not exclusively—with a view to learning, knowledge development and innovation. A first argument is that spatial clustering has quite different effects for the development of knowledge, learning and innovation in and by firms, as compared with network settings. A second point is that in some cases, clustering yields a governance advantage over networks. Taking into account the risks of cognitive, technological, organizational and institutional lock-in associated with both processes, this paper concludes that both clustering and networking have advantages and disadvantages for the firms involved. The two concepts are potential dynamic complements, as clustering and networking have different but complementary effects for learning, although they are also static substitutes, as firms may opt to switch between the two processes, for example, leaving a local or regional cluster to engage in a network endeavor at a higher spatial scale.     

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 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.     

Organizing the Innovation Process: Complementarities in Innovation Networking

This paper contributes to the developing literature on complementarities in organizational design. We test for the existence of complementarities in the use of external networking between stages of the innovation process in a sample of UK and German manufacturing plants. Our evidence suggests some differences between the UK and Germany in terms of the optimal combination of innovation activities in which to implement external networking. Broadly, there is more evidence of complementarities in the case of Germany, with the exception of the product engineering stage. By contrast, the UK exhibits generally strong evidence of substitutability in external networking in different stages, except between the identification of new products and product design and development stages. These findings suggest that previous studies indicating strong complementarity between internal and external knowledge sources have provided only part of the picture of the strategic dilemmas facing firms.     

Determinants and Specificities of Eco-Innovations Compared to Other Innovations—An Econometric Analysis for the French and German Industry Based on the Community Innovation Survey

Many recent papers deal with exploring and explaining the determinants of eco-innovations for different countries supporting the formulation of efficient policy measures to trigger eco-innovation activities of firms. Unfortunately, there is still a lack of econometric cross-country analyses allowing recognizing common cross-country determinants, but also country-specific characteristics of eco-innovations. Based on data from the fourth Community Innovation Survey for France and Germany, the present paper contributes to fill this gap. Using a fully harmonized econometric model for the two countries, we are able to detect remarkable similarities concerning the different determinants of eco-innovations despite differences in the national innovation systems. The results confirm the central role of regulation and cost savings as motivations for eco-innovations compared to other innovations. Furthermore, eco-innovative activities seem to require more external sources of knowledge and information. Due to the respective regulation, in France, universities as cooperation partners seem to be more important compared to Germany.     

New Technologies and Firm Organization: The Case of Electronic Traceability Systems in French Agribusiness

This paper considers the relationship between the adoption of electronic traceability systems (ETSs) and the organization of firms. More precisely, it analyzes the respective roles of a firm's organizational structure, and organizational changes, in the process of ETS adoption in agribusiness. We use data from the French “Organizational Changes and Computerization” survey from 2006. We test a probit model to demonstrate the organizational structure and organizational changes underlying the firm's ETS adoption choice. Results show that ETS adoption is strongly favored by organizations with heavy hierarchical structures, standardized managerial practices and contractual mechanisms with external partners. This adoption process seems to coevolve with the organization: firms that implemented an ETS during the observed period (2003–2006) have experienced the most important organizational changes in terms of managerial practices, information systems and contractual relations, as well as the strengthening of the intermediate levels in the hierarchy.     

Knowledge context,learning and innovation: an integrating framework

Abstract

In this conceptual paper, we develop a framework which identifies those elements of firms’ knowledge context which are important for innovation, and the mechanisms through which that knowledge impacts on firms’ innovation performance. We make four main contributions to the existing literature. First, our characterisation of knowledge context provides the basis for a more specific identification of which elements of firms’ knowledge environment are important for innovation, discriminating between spatial, sectoral and network influences. Second, we reflect the role of innovation ambition in shaping firms’ knowledge search strategies. Third, we differentiate between firms’ interactive and non-interactive knowledge search activities and recognise that these may be complemented by unanticipated and serendipitous knowledge spillovers. Finally, we employ the notion of encoding capacity to reflect firms’ internal ability to assimilate and apply external knowledge, and clarify its distinctiveness from the more general concept of absorptive capacity. Our framework provides an integrating mechanism for existing empirical studies, and suggests a number of new research directions related to the determinants of innovation performance and the heterogeneity of innovation outcomes.     

Industry-Public Knowledge Infrastructure Interaction: Intra- and Inter-organizational Explanations of Interactive Learning

This paper pursues the development and empirical exploration of a theoretical framework that explains the probabilities of interactive learning of innovating firms and actors in the public knowledge infrastructure. Our research question reads as follows: To what extent does the strength of innovator firms' internal knowledge resources, the complexity of their innovative activities, and the structuring of their innovative activities influence the probabilities of interactive learning between innovating firms and actors in the knowledge infrastructure? We contend basically that more complex innovative activities increase the probability of internal resource deficits/shortages in innovating firms. The higher the resource deficits/shortages and the lower the alignment of innovative activities, the more likely the search for complementary resources externally, which induces higher probabilities of interactive learning with actors in the knowledge infrastructure. In order to test the generality of our theoretical claims six models were examined, predicting the probability of interactive learning of innovating firms with the knowledge infrastructure (universities and research centres) controlling for sectoral differences in technological dynamics and size effects. Both monotonic and non-monotonic effects were tested. Our findings show that antecedents of patterns of interactive learning differ widely and are contingent upon sectoral technological dynamics and firm size. Our findings enhance a substantial refinement of the main theoretical arguments explaining the level of interactive learning. The absorptive capacity effect turns out to have an inverted U-shape only for small- and medium-sized enterprises (SMEs). The complexity effect is monotonic in some cases and non-monotonic in others. The interaction effect turned out to be U-shaped. The internal integration of innovative activities has no effect at all. Support by bridging institutions had a very strong influence on levels of interactive learning between innovating firms and knowledge infrastructure, but only for SMEs.