Abstract
Knowledge creation and technological innovation are important for firms of all sizes to create and sustain competitive advantage. Building on the dynamic capabilities framework we examine certain key characteristics crucial for dynamic capabilities and knowledge-related and technology-related outcomes within the context of industry-university relationships. Our data is a diverse sample of 189 large and small-sized industrial firms from over 20 different industries collaborating with university research centres affiliated with prominent research-oriented universities in the USA. In-depth interview exploratory data were used to substantiate our conceptual framework while survey questionnaire and secondary quantitative data were used for hypotheses testing. Results show effective university communications and close geographic proximity between the industrial firm and its university partner are vital for advancing knowledge and new technologies. We also found that while the length of I/U relationship alone is not a significant factor, length of relationship moderates the effect of university communications, geographic proximity, and an organic firm structure on these outcomes. We conclude with implications for theory development, future research, and management practice.
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