External information sourcing and lead-time advantage in product innovation

2020 ◽  
Vol 21 (5) ◽  
pp. 709-726
Author(s):  
Kristof Van Criekingen

PurposeHaving a short throughput time for innovation projects, i.e. lead-time, can put firms in an advantageous position. The time that lapses between a project’s start and its completion, is influenced not only by the firm's internal capabilities but also by how the firm connects to external knowledge. This paper assesses the relation between knowledge sourcing and lead-time advantage.Design/methodology/approachThis paper empirically tests the relation between external knowledge sourcing and lead-time advantage based on firm level Community Innovation Survey (CIS) data.FindingsI find that breadth and depth of the external knowledge sourcing are positively relating to lead-time advantage, albeit with diminishing returns. Investment into absorptive capacity, i.e. internal R&D, mitigates the diminishing of returns. Firms directing their external knowledge sourcing strategy toward consumers, suppliers and science are better able to capitalize on their innovations through lead-time advantages and firms also benefit from the special case of collaboration for product development.Originality/valueThe conceptual novelty of this research largely consists in empirically bringing together for the first time conceptualizations of external knowledge sourcing and the strategic use of lead-time. Given the prevalence of both concepts in the modern and fast changing economy, investigating this link is of great importance.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mari O' Connor ◽  
Justin Doran ◽  
Nóirín McCarthy

PurposeThis paper combines the concepts of search depth and cognitive proximity to investigate the impact of intense collaboration with different external agents on firms' innovation performance. It empirically tests whether firms that draw deeply on cognitively proximate collaborative partners are more innovative than those collaborating intensively with cognitively distant partners. It explores whether the impact of each external agent is equally important in determining the innovation output of firms.Design/methodology/approachUsing data from the Irish Community Innovation Survey 2012–2014, this paper employs a probit model to empirically test the impact of collaboration with cognitively proximate and distant sources of external knowledge to establish whether their impact on innovation performance is uniform.FindingsThe results show that not all collaborators equally impact firm innovation performance. Firms who indicate that knowledge sourced from backward linkages with suppliers is highly important are more likely to engage in both product and process innovation, with the effect more pronounced for the former. The extent of this is greatest for backward linkages compared to forward, horizontal and public linkages. Public linkages have the weakest impact on innovation output which raises questions from a policy perspective given the focus on university–industry collaboration for innovation. The findings indicate that collaboration with cognitively proximate sources of knowledge benefits firms' innovation output.Originality/valueThe study provides empirical evidence on the role of intense collaboration with cognitively proximate and distant external knowledge sources to explore their impact on the subsequent innovation performance of firms. The results can be used to help shape firm-level innovation policy, and indeed national policy, to promote innovation performance.


2018 ◽  
Vol 21 (4) ◽  
pp. 581-600 ◽  
Author(s):  
Thuy Phung Minh Thu ◽  
Joris Knoben ◽  
Patrick Vermeulen ◽  
Dat Tho Tran

PurposeThe purpose of this paper is to simultaneously test the association between three different sources of knowledge (internal, collaborative and regional) and innovation. This study aims to expand the insights by assessing these associations in the context of a rapidly developing and liberalizing economy; Vietnam. By conducting this study with Vietnamese data, the authors can assess whether the association between different sources of knowledge and innovation shows systematic differences to those in advanced economies.Design/methodology/approachIn this study, the authors utilize data from two main sources: The World Bank Enterprise Survey and the Innovation Capabilities Survey. These firm-level surveys comprise non-agricultural formal and private sector firms. For Vietnam, 300 manufacturing firms have been included in the sample. The authors use a series of binary logistic regression models to analyze the data.FindingsThe analyses reveal that internal R&D has a strong positive association with product innovation. In contrast to findings in Western economies, not all kinds of collaborative knowledge sources have a significant association with innovation. Only collaborative knowledge gained from inside the supply chain is positively related to product innovation. Unexpectedly, negative effects from using too much external knowledge were also found.Research limitations/implicationsDue to the cross-sectional nature of the data causality could not be inferred from the study. Moreover, a relatively large number of the measures were dichotomous due the large number of missing observations for more detailed measurements of the variables.Practical implicationsWhen developing their innovation strategy firms in developing countries should take into account that collaborating with partners useful, but only if they collaborate within the supply chain. As such, firms should increase their interaction with suppliers and customers and put their efforts on the development of customized solutions for them.Social implicationsThe Vietnamese Government could implement policies that help to enhance the quality of universities and research institutes. In most developed countries, universities and research institutes are vital sources of knowledge for innovation whereas they are not in Vietnam.Originality/valueThis paper contributes to the growing body of literature on firm-level innovation in developing countries. It identifies several core differences between the drivers of innovation in developed and developing contexts. Surprisingly, a feature that was expected to differ, the negative effect of over-search of external knowledge on innovation, was also found in Vietnam.


2017 ◽  
Vol 11 (2) ◽  
pp. 268-294 ◽  
Author(s):  
Michael Kolloch ◽  
Fabian Reck

Purpose This paper aims to focus on how different types of knowledge are exchanged within innovation networks in the German energy industry. External factors such as market pressure through liberalization, de-carbonization and decentralization challenge established actors in the industry. Answers to these challenges cannot be found by single actors but require networks to gather and concentrate innovation activities. This implies a need for knowledge transfer among energy providers. The authors aim at exploring knowledge exchange relations in-depth by treating them as multidimensional flows which can comprise technological, market, managerial or regulatory knowledge. In detail, the authors examine patterns of knowledge exchange on network-, dyad- and firm-level. Furthermore, first, empiric results are provided on how two of these patterns, namely, a firm’s propensity to form multiplex instead of uniplex ties as well as the composition of externally acquired knowledge concerning the four types, influence organizational innovativeness. Design/methodology/approach The authors address their research questions by conducting an in-depth investigation of the largest network of municipal utilities in Germany. The analysis is based on quantitative data collected via standardized online questionnaires drawing on socio-metric methods to reconstruct knowledge exchange networks as well as traditional approaches from socio-empiric research to evaluate firm innovativeness. Findings The findings indicate that while technological, market, managerial and regulatory knowledge represent different types of knowledge with different exchange patterns, these transfers are interdependent. In particular, the analysis reveals non-hierarchical relations of complementarity. The authors furthermore provide evidence for the existence of ideal profiles for attaining different types of innovation. One central tendency across all of these profiles is that outperformers acquire regulatory knowledge to a significantly lesser degree than other firms and focus more on the other types instead. Research limitations/implications This paper solely focusses on the largest network of municipal utilities whereby it is questionable how representative it is for the whole industry. Additionally, due to the cross-sectional design, the paper cannot fully rule out issues of endogeneity in the quantitative analysis. Practical implications This paper delivers valuable insights for managers in the energy sector who seek to either enter and manage inter-organizational networks or apply external knowledge to foster innovation. In particular, the authors reveal benchmark profiles for external knowledge acquisition which may serve as templates for strategic collaboration and innovation management. Originality/value To the authors’ knowledge, this paper presents the first innovation-related network analysis in the energy industry. Rather than operationalizing knowledge transfer as a simplex flow relation, the authors examine different types of knowledge, their patterns of exchange and their distinct effects on process, product and administrative innovations.


2014 ◽  
Vol 31 (4) ◽  
pp. 435-454 ◽  
Author(s):  
Giovanni Mangiarotti ◽  
Cesare A.F. Riillo

Purpose – The research empirically investigates the firm-level impact of ISO 9000 certification on innovation propensity. The study aims to distinguish between manufacturing and service sectors and adopts different innovation definitions aimed at capturing the peculiarities of innovation in services and small firms. Design/methodology/approach – Relying chiefly on Community Innovation Survey data for Luxembourg, the impact of certification on innovation probability is assessed using a logit model that controls for relevant firms characteristics and market features. Findings – The innovation potential of services and small firms is understated when adopting innovation definitions restricted to technological aspects and more formalised innovation activities. ISO 9000 certification may promote innovation when adopting definitions that captures sectoral innovation specificities. In particular, certification increases innovation propensity in manufacturing when the focus is on technological innovation and formalised innovation expenditures. On the contrary, when non-technological aspects are included and allowance is made for wider innovation activities, the impact of certification on services tends to emerge. However, sharper statistical evidence for manufacturing indicates a more important role of certification for innovation success in this sector. Research limitations/implications – Case-study research could supplement the findings concerning the relative effectiveness of certification in services and manufacturing. The investigation would also benefit from extensions in the econometric analysis to address comparisons across samples and potential causality issues. Practical implications – Findings are interesting to practitioners and registrars in order to identify the specific characteristics of firms for which certification provides higher innovative potential. Originality/value – The study highlights the relevance of sectoral specificities and innovation definitions for the debate about the effect of ISO 9000 certification on innovation.


2020 ◽  
Vol 26 (7) ◽  
pp. 1789-1805 ◽  
Author(s):  
Su-Ming Wu ◽  
Xiu-Hao Ding

PurposeInformation technology plays a critical role in the open innovation process. The purpose of this study is to explore the inner mechanism of external information technology (IT) capability that affects open innovation performance.Design/methodology/approachIn this paper, responses to 232 questionnaires from different firms were collected in China. Then, the proposed hypotheses were tested using regression analysis by statistical product and service solutions (SPSS).FindingsThe results indicate that external knowledge integration plays a mediating role in the relationship between external IT capability and open innovation performance, openness breadth positively moderates the influence of external IT capability on external knowledge integration and openness depth negatively moderates the relationship between external IT capability and external knowledge integration.Practical implicationsThe results, which are based on Chinese responses, provide useful suggestions for firms in China. To use external IT capability to improve open innovation performance, firms should not only stress the role of external knowledge integration but also consider their search strategy.Originality/valueBoth researchers and practitioners are interested in the relationship between information technology and open innovation. However, the way in which the inner mechanism of external IT capability affects open innovation performance has not been thoroughly researched. Based on knowledge integration theory, the authors construct a model that includes external IT capability, external knowledge integration, search strategy and open innovation performance. The results of this paper confirm the mediating and moderating roles of external knowledge integration and search strategy, respectively.


2017 ◽  
Vol 119 (11) ◽  
pp. 2373-2387 ◽  
Author(s):  
Gabriele Santoro ◽  
Demetris Vrontis ◽  
Alberto Pastore

Purpose The purpose of this paper is to analyze the role of external knowledge in the innovation process of firms in the food and beverage (F&B) industry and the effects of two external knowledge sourcing modes on new product development (NPD) performance. Design/methodology/approach The paper applies a quantitative approach, relying on data from 157 Italian firms operating in the F&B industry to test the hypotheses through OLS regression models. Findings Results suggest that the surveyed firms actively engage in open innovation with strong ties with market-based sources. Moreover, the authors found that market-based sources are associated with income from incremental innovation and time to market, while science-based sources are associated with income from radical innovation. Finally, the authors found that the R&D intensity enhances the benefits of the above external knowledge sourcing modes. Originality/value Despite the large amount of studies assessing the effects of external knowledge sourcing on performance in the open innovation field, few studies focused on a specific industry, especially with regard to F&B. Moreover, this paper considers different types of NPD performance measures given that different external knowledge sourcing modes exert different effects.


2017 ◽  
Vol 117 (6) ◽  
pp. 1166-1184 ◽  
Author(s):  
Juyeon Ham ◽  
Byounggu Choi ◽  
Jae-Nam Lee

Purpose Many studies have investigated the relationship between the adoption of open innovation and performance in large firms. However, limited research is available with regard to the use of open innovation in small and medium enterprises (SMEs). SMEs are important because of their contribution to innovation in almost all economies. The purpose of this paper is to extend the current literature by focusing on SMEs. Using complementarity and knowledge-based theories, this study develops three hypotheses to identify the effect of knowledge sourcing approaches for innovation on SMEs’ innovation performance. Design/methodology/approach Surveys collected from 196 SMEs in Korea were analyzed using the supermodularity function to test the hypotheses. Findings Results indicate that an external knowledge-oriented approach has no significant effect, whereas an internal knowledge-oriented (i.e. closed) approach has a positive effect on innovation performance. Interestingly, this study found that open innovation has a negative effect on SMEs’ innovation performance (i.e. both internal knowledge-oriented and external knowledge-oriented approaches have a substitutive relationship). Originality/value This study sheds new light on open innovation and knowledge management research by identifying the relationship between knowledge sourcing approaches for innovation, and innovation performance in SMEs. Practical implications highlight that open innovation could impede SMEs’ innovation performance.


2018 ◽  
Vol 22 (2) ◽  
pp. 237-256 ◽  
Author(s):  
Lurdes Simao ◽  
Mário Franco

Purpose This paper aims to analyse the impact of different knowledge sources used by firms to adopt organizational innovation, in relation to organization of responsibilities and decision-making in the workplace. Design/methodology/approach To fulfil the proposed objective, quantitative research, based on a sample of 2,591 Portuguese firms, has been undertaken. Data have been obtained from the Community Innovation Survey 2012. Findings The results show the importance of external knowledge from suppliers, clients, consultants and commercial laboratories in new innovation practices in firm workplace. Knowledge from competitors, universities, the State and research institutes does not present a significant effect. Practical implications Knowledge sources can stimulate the introduction of new management practices in the workplace, consistent with the external search literature on technological innovation, which argues that many of the ideas and implementation skills for organizational innovation come from outside sources. Originality/value Within the innovation management literature, very few studies tried to explore organizational innovation in firm workplaces. This paper is innovative and makes a novel contribution mainly to the knowledge management field by highlighting the importance of external knowledge sources in organizational innovation in firm workplaces from a knowledge-based perspective.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Serdal Temel ◽  
Anne-Laure Mention ◽  
Alp Eren Yurtseven

PurposeEmbracing a large set of innovation objectives and collaborating with diverse partners have been promoted as a means to improve innovation performance. However, empirical evidence on the relationships between breadth of objectives, breadth of cooperation and innovation performance is limited, particularly in the context of emerging economies. A larger number of objectives and cooperation partners inevitably increases the complexity in organizational alignment, and cooperation eventually leads to diminishing returns. This study adds to the debate on the costs and benefits of cooperation for innovation. Understanding the optimal levels of the breadth of objectives and cooperation supports managerial decision-making and productivity in the practice of cooperation for innovation.Design/methodology/approachOperationalizing breadth of innovation objectives and cooperation via the Turkish Community Innovation Survey data, self-reports reflecting 5,863 firm-level responses between 2006 and 2008 are analysed using tobit and probit models. The maximum likelihood estimator is used to find the optimal levels for breadth of objectives and cooperation.FindingsFirms with greater breadth of innovation objectives experience higher innovation performance; those with greater breadth of cooperation also experience higher innovation performance, but our results indicate the existence of optimal levels of breadth for both innovation objectives and cooperation.Research limitations/implicationsThe authors extend the logic that there is no safety in numbers in cooperation for innovation. If the aim is to enhance innovation performance, managers and policymakers need to pay attention to the number of innovation objectives and the amount of cooperation pursued by firms. However, innovation success may be closely associated with a firm's dynamic capabilities and ability to mobilize its resources. Drawing on organizational learning theories, future research could explore why a lower than maximum level of cooperation may be more conducive to reaching levels of enhanced innovation performance and whether this level is influenced by cognitive processes.Originality/valueThe authors draw attention to the ideal number of innovation objectives and number of cooperating partners required to enhance innovation performance, thus contributing to the debate on the complex relationships between innovation, performance and cooperation in the unique setting of a large developing economy.


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