Relatedness economies, absorptive capacity, and economic catch-up: firm-level evidence from China

2019 ◽  
Author(s):  
Anthony Howell
Keyword(s):  
Absorptive Capacity ◽  
Knowledge Spillovers ◽  
Policy Implications ◽  
Firm Level ◽  
Sources Of Knowledge ◽  
Market Competitiveness ◽  
External Sources ◽  
Catch Up ◽  
External Sources Of Knowledge

Abstract This paper examines the effect of agglomeration economies on firm productivity and the role of absorptive capacity in China. Taking into account the transitioning economy context, I further exploit the gradual and spatially uneven implementation of market-oriented reforms to track the relative importance of firms’ absorptive capacity for economic catch-up. The three main results are as follows. First, firms exhibit higher productivity when located in an area with a denser network of related activities, particularly for firms with higher absorptive capacity. Second, the sources of the productivity gains are driven by externalities that arise from better access to inputs, similar workers and technological-related knowledge spillovers. Third, the role of absorptive capacity becomes more important for boosting productivity following more versus less intensive market-oriented economic reforms. These findings have important policy implications for transitioning economies and suggest that market reforms promote efficiency improvements related to performing actual R&D as well as encourage firms to seek out external sources of knowledge in order to attain market competitiveness.

ABSORPTIVE CAPACITY, INNOVATION, AND EXTERNAL SOURCES OF KNOWLEDGE: THE BRAZILIAN POWER SECTOR

2021 ◽  
Vol 22 (5) ◽  
Author(s):  
ÂNGELA F. VERSIANI ◽  
MARINA A. CRUZ ◽  
SÉRGIO F. L. REZENDE ◽  
JOSÉ M. CASTRO
Keyword(s):  
Absorptive Capacity ◽  
Statistical Testing ◽  
Power Sector ◽  
Industrial Firms ◽  
Sources Of Knowledge ◽  
External Sources ◽  
Research Gap ◽  
External Sources Of Knowledge ◽  
The Relationship ◽  
Validation Stage

ABSTRACT Purpose: This paper discusses the relationship between absorptive capacity, external sources of knowledge, and innovation in the context of the power sector. In doing so, we follow the theoretical debate over absorptive capacity dimensions. We focus on the statistical testing of Zahra and George’s (2002) absorptive capacity construct to identify whether their dimensions find support in reality. We consider that the external environment encompasses both scientific and industrial sources of knowledge, which influence absorptive capacity. Originality/value: Zahra and George’s (2002) model initiated the debate of the absorptive capacity dimensions, and it is disseminated in literature. However, it is poorly tested. There is still a research gap related to the empirical validation stage of the absorptive capacity construct itself. Our research tries to decrease this gap, testing Zahra and George’s (2002) absorptive capacity construct in a Brazilian company’s context. Design/methodology/approach: The research design was quantitative. A survey was applied to 402 industrial firms. We used multivariate sta tistical techniques and the structural models were tested by Partial Least Squares (PLS). Findings: Zahra and George’s (2002) construct of absorptive capacity was proved, and innovation, as well as the external sources types of knowledge, are related to it. The absorptive capacity is contingent on types of external knowledge.

Effects of sources of knowledge on frugal innovation: moderating role of environmental turbulence

2019 ◽  
Vol 23 (7) ◽  
pp. 1245-1259 ◽  
Author(s):  
Mir Dost ◽  
Munwar Hussain Pahi ◽  
Hussain Bakhsh Magsi ◽  
Waheed Ali Umrani
Keyword(s):  
Social Issues ◽  
Frugal Innovation ◽  
Content Type ◽  
Technological Turbulence ◽  
Sources Of Knowledge ◽  
External Sources ◽  
Market Turbulence ◽  
External Sources Of Knowledge ◽  
Moderating Role

Purpose The purpose of this paper is to investigate the effects of internal and external sources of knowledge on frugal innovation (FI), and to what extent this relationship is strengthened/weakened, authors also analyzed the moderating role of market and technological turbulence. Design/methodology/approach This is an empirical research. Data were collected from 382 SMEs through questionnaire survey, applied SmartPLS technique to analyse the data. Findings Findings revealed the significant effects of internal and external sources of knowledge on FI. To what extent this relationship is strengthened/weakened, the moderating role of market and technological turbulence was analysed. Data revealed that the moderation of technological turbulence strengthens the effects internal and external sources of knowledge had on FI. Market turbulence strengthened the effects of external sources of knowledge but surprisingly weakens the effects of internal sources of knowledge on FI. Practical implications Findings provide valuable and timely insights for the modern managers as well. Managers who operate in SMEs will have to understand that how knowledge from internal and external sources can be gathered and utilized for producing frugal products. They also will have to weigh which source of knowledge is more important when there is market and technological turbulence. Originality/value Sustainable and social issues emerge mainly due to scarcity of available resources. Firms seek to solve such pressing issues through improvisation in resources. However, frugal products assist firms to significantly contribute in society and sustainability. Although prior research has discussed the importance of knowledge for innovation, yet the effects of sources of knowledge and role of contingencies mostly remain unexplained puzzle. This study contributes to knowledge-innovation literature by examining the missing link between different sources of knowledge and FI and how the moderation of technology and market turbulence strengthen/weaken this relationship. Authors believe that it also helps to comprehend FI’s enabling factors through which firms can capitalize upon, and solve the pressing sustainable and social issues.

INFLUENCE OF RISK-TAKING AND PROACTIVITY BEHAVIOURS ON FRUGAL PRODUCT INNOVATION: THE MODERATING ROLE OF EXTERNAL SOURCES OF KNOWLEDGE

2021 ◽  
Author(s):  
MIR DOST ◽  
MOHAMMAD SAUD KHAN
Keyword(s):  
Risk Taking ◽  
Product Innovation ◽  
Cost Effective ◽  
Positive Influence ◽  
Market Growth ◽  
External Knowledge ◽  
Sources Of Knowledge ◽  
External Sources ◽  
External Sources Of Knowledge

Growing changes in the present global environment is compelling firms to seek and exploit opportunities for market growth. Among others, an innovation that is cost-effective, functional, and sustainable (frugal) is one of the important factors for such growth. To validate this link empirically, we investigate the influence of risk-taking and proactivity behaviours (dimensions of entrepreneurial orientation (EO)) on frugal innovation (FI), and moderation of external knowledge. We nested the data from Small and Medium Entreprises that were engaged in frugal product innovation in Pakistan. The findings reveal that the behaviours of taking the risk and being ahead of competitors (proactiveness) have a significantly positive influence on FI. However, moderation of external knowledge strengthens the influence of risk-taking behaviour while weakens the influence of proactivity behaviour on FI. The authors also discuss some important theoretical and managerial contributions of this research.

The role of internal and external sources of knowledge on frugal innovation: moderating role of innovation capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdullah Fahad AlMulhim
Keyword(s):  
Saudi Arabia ◽  
Knowledge Sources ◽  
Frugal Innovation ◽  
Content Type ◽  
Future Studies ◽  
Sources Of Knowledge ◽  
External Sources ◽  
External Sources Of Knowledge ◽  
Moderating Role

Purpose This study aims to analyze the effect of external and internal sources of knowledge on frugal innovation. Moreover, it investigated how this relationship is weakened/strengthened by the moderation of innovation capabilities. Design/methodology/approach This empirical study’s data were taken from 288 small and medium enterprises (SMEs) by using a questionnaire survey. To analyze this data, analysis of a moment structures software (AMOS) was used. Structural equation modeling was conducted to test the hypothesis and the slope test investigated moderation. Findings The study results showed the significant effect of internal and external sources of knowledge on frugal innovation. Moreover, the results highlighted that the moderating role of innovation capabilities strengthens this relationship. Research limitations/implications The SMEs of “Saudi Arabia” were considered for this study. Among these, this paper only focused on enterprises owned by Saudi citizens. Moreover, the data were collected from 288 SMEs. Therefore, future studies can be conducted from any other country with larger sample size. This study has used moderation of innovation capabilities and future studies can use information credibility as a moderating variable. Originality/value Previously, many studies have highlighted the importance of knowledge for innovation, but the effects of knowledge sources from the perspective of SMEs and emerging markets remain unexplained. Very limited studies have explored the relation of knowledge sources with frugal innovation. This study first examines the moderating role of innovation capabilities between “internal and external knowledge sources” and frugal innovation. Moreover, this research reveals the SMEs of Saudi Arabia and its sector of frugal products.

The Role of Interfirm Knowledge Spillovers for Innovation in Mass-Produced Environmental Technologies: Evidence from the Solar Photovoltaic Industry

2016 ◽  
Vol 31 (1) ◽  
pp. 3-24 ◽  
Author(s):  
Joern Hoppmann
Keyword(s):  
Absorptive Capacity ◽  
Knowledge Spillovers ◽  
Competitive Dynamics ◽  
Solar Photovoltaic ◽  
Process Technology ◽  
Environmental Innovation ◽  
Firm Level ◽  
Environmental Technologies ◽  
Knowledge Absorption

Knowledge spillovers play a potentially important role for innovation and competitive dynamics in mass-produced environmental technologies. Currently, however, we lack research that studies knowledge spillovers in such technologies at the firm level. To address this shortcoming, in this article we investigate the drivers of technological innovation in the solar photovoltaic industry. We find clear evidence for the existence of interfirm knowledge spillovers and show that besides investments in R&D, investments in manufacturing equipment have served as a channel of knowledge absorption. Our findings shed new light on the narrative linking environmental innovation and competitive advantage. Moreover, by pointing to the role of process technology as a means of assimilating and exploiting external knowledge, we highlight an important but frequently neglected channel of absorptive capacity.

scholarly journals Firms’ Innovation in Waste Management and Land Fertilizers within the Triad

2017 ◽  
Vol 12 (8) ◽  
pp. 120
Author(s):  
Concetto Paolo Vinci ◽  
Luigi Aldieri
Keyword(s):  
Waste Management ◽  
Knowledge Spillovers ◽  
Positive Impact ◽  
Policy Implications ◽  
Firm Level ◽  
Explanatory Variables ◽  
Management Efficiency ◽  
Econometric Methods ◽  
The Usa

In this paper we investigate agricultural innovation in three economic areas: the USA, Japan and Europe, taking into account simultaneously both the spatial and technological dimensions.In particular, we introduce a theoretical framework and an empirical analysis based upon a dataset composed of worldwide R&D-intensive firms to discuss the role of spillover components in the waste management efficiency at firm level. The technological relatedness between the firms is computed through an original Mahalanobis Environmental industry weight matrix, based on the construction of technological vectors for each firm. Methodologically, from one hand, we explore the extent to which knowledge spillovers are important through spatial analysis procedure and from the other hand, we measure the effects of technology spillovers on firms’ productivity through econometric methods to handle heterogeneity and endogenous explanatory variables. The findings show a positive impact of Jacobian R&D spillovers on firms’ productivity and environmental performance and this result can be relevant repercussions in terms of policy implications.

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