A confirmatory factor analysis for assessing innovativeness in knowledge intensive business services

Abstract

This research aims to present an empirical study applied to knowledge intensive business services (KIBS) to provide a better understanding of what innovation implied in terms of market outcome for these firms. This study uses a confirmatory factor analysis (CFA) applied to a unique data compiled via a survey, and consider three dimensions: level of competition, degree of innovation and market outcome based on the dimensions evaluated in an integrated model of innovation. The results show that managers perceive the existence of important positive relationships between their firm's degree of technological innovation and the level of service innovation, as well as between these two and the market return achieved. KIBS firms reveal an intensive use of technology and tacit knowledge in the services they provide. They are also considered as a key element to ensure innovation in other industries, this research provide some contributes based on a quantitative research about KIBS.