Knowledge networks and technological capabilities of SMEs: the role of technology strategies and its implications for knowledge service intermediaries

Abstract

By conducting an empirical survey of 177 small- and medium-sized enterprises (SMEs) from China, this study explores the role of SMEs’ technology strategies in the relationship between knowledge networks and technological capabilities and its implications for knowledge service intermediaries. The results indicate that (1) the scale, openness and duality of knowledge networks increase technological capabilities regardless of the role of technology strategies. However, a dense knowledge network increases technological capabilities only when an SME uses an exploitative technology strategy, and a thin knowledge network increases technological capabilities only when an SME uses an explorative technology strategy. (2) The effects of knowledge networks on two different technological capabilities – search and application – are different due to technology strategies. An SME's explorative technology strategy focuses on strengthening its technological search capability, and its exploitative technology strategy helps it to acquire a balanced development of the two technological capabilities. (3) The implications for knowledge service intermediaries are discussed. Knowledge service intermediaries should help SMEs to leverage knowledge networks depending on their specific technology strategies to acquire specific technological capabilities.