Effects Of External Knowledge Research Articles

External knowledge and eco-innovation: evidence from small and medium-sized enterprises

Purpose Firms are engaging in eco-innovation as a response to environmental concerns. Due to its complexity, firms are searching, absorbing and using externally acquired knowledge toward implementing eco-innovation. Thus, this study aims to examine how different external knowledge sources affect the eco-innovation of small and medium-sized enterprises (SMEs) in developing economies. Design/methodology/approach The study uses an Ordered Probit regression analysis for 318 developing economy SMEs to examine the impact of vertical flows (suppliers and customers) and horizontal flows (competitors and scientific organisations) on eco-innovations. Findings On the vertical dimension, the results show that external knowledge from suppliers is positively associated with eco-product and eco-process innovations. However, external knowledge from customers is positively associated with eco-product innovation, but not eco-process innovation. On the horizontal dimension, external knowledge from competitors contributes to eco-process innovation, but not to eco-product innovation. Finally, external knowledge from scientific organizations is positively related to eco-product and eco-process innovations. Originality/value First, the study contributes to the external knowledge literature by focusing on developing country SMEs. Second, the methodology used in this study constitutes a novelty as it provides a tool that categorizes firms according to the extent of emphasis they placed on both eco-product and eco-process innovations. Finally, it offers new evidence by revealing that the effects of external knowledge on eco-innovations are differentiated and not equally beneficial to firms.

The effect of external knowledge on innovation capacity of SMES: Does the source of knowledge matter?

This paper aims to analyze the effects of different sources of external knowledge (market sources, institutional sources and business network affiliation) on firms’ capacity to innovate. Using cross-sectional data collected with the help of questionnaires on a sample of 514 SMEs in 2014, we employ the maximum likelihood method to estimate logistic regression models from which follow three main results: firstly, market sources significantly reduce innovative capacity; secondly, institutional sources of knowledge significantly increase innovative capacity; and thirdly, the net effect of business network affiliation, taking into account the other two sources of knowledge, is quite small. Thus, these results show that the institutional and operating environment of SMEs needs to be improved in order to discourage opportunistic behaviours and reduce information asymmetries in the hope that, in the long run, market sources can be transformed into an advantage for innovation, on the one hand. On the other hand, there is a need for a broad national coordination policy that encourages collaboration between universities and industry, as well as the commercialization of university research results. Hence, these results enrich the current understanding of the link between collaborative networks and the innovation performance of firms.

The knowledge multiplier

The paper develops a formal model of external knowledge and identifies the role of knowledge multipliers. Social interactions and knowledge multipliers play a crucial role in determining the rate of technological change. The analytical identification of the knowledge multiplier expression constitutes a key step in the appreciation of the crucial role of knowledge interactions. First, social considerations endogenously change the knowledge production function of each firm. The knowledge multiplier is the specific mechanism by means of which external knowledge contributes to enhance the innovative capacity of each firm. The production function of knowledge shows that the larger the knowledge multiplier is the stronger are the cumulative positive effects of external knowledge on the generation of new knowledge. Second, social considerations explain the long-run dynamics of innovation. Social reinforcement and the knowledge multiplier determine the rise or fall in the rate of accumulation of technological knowledge.

HOW DO FIRMS SOURCE EXTERNAL KNOWLEDGE FOR INNOVATION? ANALYSING EFFECTS OF DIFFERENT KNOWLEDGE SOURCING METHODS

In the era of "open innovation", external knowledge is a very important source for technology innovation. In this paper, we investigate the relationship between external knowledge and performance of technology innovation. The effect of external knowledge on the performance of technology innovation can vary with different external knowledge sourcing methods. We identify three ways of external knowledge sourcing: information transfer from informal network, R&D collaboration and technology acquisition. We propose three hypotheses to examine relationship between the three methods of external knowledge sourcing and the technology innovation performance. Our results show that information transfer from informal network and technology acquisition have positive relationships with the technology innovation performance. R&D collaboration, however, has an inverted-U-shape relationship with technology innovation performance. This implies that the effect of external knowledge on technology innovation varies depending on the particular external knowledge sourcing method. This research has an important implication for firms in selecting an appropriate strategy for accessing external knowledge.