Abstract
Purpose This paper aims to assess knowledge relatedness as a possible determinant of business innovation performance. Knowledge relatedness is understood as the degree of similarity between a firm’s knowledge and that of its parent, i.e. the company that the entrepreneur leaves to establish his or her own firm. Innovation performance results from the competitive position that the company achieves through its management of new products and services on the market. Design/methodology/approach For the empirical work, the authors used a database composed of 356 entrepreneurs who established recently their own business in Costa Rica: people who stopped working in multinational companies in Costa Rica and created their own businesses, and people who created their own businesses simultaneously as the former employees of multinationals. Findings This paper reports a positive and significant correlation between knowledge relatedness and innovation performance for a number of young firms. Originality/value This paper presents the fact of including knowledge relatedness as a research topic linked to business innovation.
Highlights
The factors that determine business innovation performance can be grouped into three broad categories: contextual, organizational and personal (Crossan and Apaydin, 2010)
Knowledge relatedness is understood as the degree of similarity between a company’s knowledge with respect to its parent company, i.e. the company that the entrepreneur left to found his/her own company. (Sapienza et al, 2004; West and Noel, 2009)
This paper aims to assess knowledge relatedness as a possible determinant of business innovation performance
Summary
The factors that determine business innovation performance can be grouped into three broad categories: contextual, organizational and personal (Crossan and Apaydin, 2010). Knowledge relatedness has been linked to overall business performance (West and Noel, 2009; Sapienza et al, 2004). One maintains that there is a positive and linear correlation between the similarity of knowledge and business performance (West and Noel, 2009). The other stance considers that there is a somewhat curvilinear, inverted U-shaped relationship (Sapienza et al, 2004). This may Journal of Economics, Finance and Administrative Science Vol 23 No 45, 2018 pp.
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