Participation in Group Companies as a Source of External Knowledge in Obtaining and Making Profitable Radical Innovations

Sara Alonso-Muñoz,Rocío González-Sánchez,Eva Pelechano-Barahona

doi:10.3390/su12187701

Sara Alonso-Muñoz, Rocío González-Sánchez + Show 1 more

Open Access

https://doi.org/10.3390/su12187701

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Journal: Sustainability	Publication Date: Sep 17, 2020
Citations: 1	License type: CC BY 4.0

Affiliation: King Juan Carlos University

Abstract

In the context of potential absorptive capacity, the present work analyzes sources of knowledge through the adjustment between the typology of sources and innovative results. Different external sources can condition the later phases of knowledge absorption. In relation to external sources of knowledge, we enrich their treatment by considering other companies in the same group as deeper relationships. In addition, we analyzed the results regarding the generation of radical innovations with impact on income. The results show that company groups can reduce costs in the exchange of technological knowledge, not only to develop radical innovations but also to improve their economic performance. Furthermore, membership in a group allows a company to obtain a greater economic return when combined with assimilation resources.

Highlights

In turbulent business environments, the continuous reduction of a product’s life cycle increases the number of competitors based on technological advances and globalization and increases the development of new goods, services or processes, all of which have become key success components within organizations [1].Innovations that allow the creation of new goods, services or processes or the modernization of existing ones require the use of valuable resources that, in many occasions, need to be acquired through the establishment of relationships with the environment or external knowledge suppliers [2]
There is an extensive array of scientific papers about the relationship between knowledge absorption and the development of new products [1,3,5].Based on the source of knowledge approach, different external sources can condition the latest phases in knowledge absorption and, innovative result can be obtained [6]
We could support the non-denial of hypothesis (H1a), because we observed that the alternative process of access to technological knowledge through companies in the technology-based group increased the probability of obtaining radical innovation by 55% (Exp (B) = 1.57; Table 2)

Summary

Introduction

The continuous reduction of a product’s life cycle increases the number of competitors based on technological advances and globalization and increases the development of new goods, services or processes, all of which have become key success components within organizations [1]. Innovations that allow the creation of new goods, services or processes or the modernization of existing ones require the use of valuable resources that, in many occasions, need to be acquired through the establishment of relationships with the environment or external knowledge suppliers [2]. There is an extensive array of scientific papers about the relationship between knowledge absorption and the development of new products [1,3,5].Based on the source of knowledge approach, different external sources can condition the latest phases in knowledge absorption and, innovative result can be obtained [6]. Recent research has considered the ownership of the company when studying the effect of absorption capacity [11]

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