External Knowledge Search Strategies Research Articles

The Effects of Top Management Team External Social Capital on Firm's Openness: Exploring the Mediating Role of Strategic Knowledge Integration

Going from the knowledge-based view of the firm, we designed a framework to describe top management team's (TMT) external social capital as a determinant of the depth and breadth of external knowledge search strategies in open innovation and Small and medium-sized enterprises (SMEs) innovation performance. Besides, we examined the significance of strategic knowledge integration in external knowledge search strategies and innovation performance. Using a sample of 252 Kenyan manufacturing SMEs, the authors applied partial least square to a structural equation model to test the suggested hypotheses. The findings reveal that firms with intense, more frequent, and closer TMT external social capital with external knowledge sources can enhance the stock of externally acquired knowledge, showing that TMT's external social capital plays a crucial role in facilitating the breadth and depth of external knowledge search strategies. The article also finds that external knowledge search breadth is more affected by TMT's external social capital, whereas strategic knowledge integration mediates external knowledge search practices and innovation performance. Therefore, firms with a good ability to identify new opportunities and dynamic strategic businesses tend to be more innovative. This article contributes to social capital and open innovation literature by analyzing two critical determinants: external social capital and strategic knowledge integration. This article attempts to address these gaps in the literature by linking TMT's external social capital, the search for external knowledge, and strategic knowledge integration to innovation performance.

Dynamic openness for network-enabled product and process innovation: a panel-data analysis

PurposePrior research on open innovation has not investigated changes in knowledge acquisition strategies of firms over time overlooking how learning from past knowledge acquisition can change subsequent search strategies. Also, prior research has focused principally on product innovation overlooking process innovation. The purpose of the paper is to introduce the concept of dynamic openness, which is defined as temporal changes in external knowledge search strategy. We explore four dynamic openness strategies – closing down, opening up, persistent open and persistent closed – and examine the impact of these strategies on both product and process innovation.Design/methodology/approachThe authors used a panel dataset of 16,021 firms based on five waves (2009–2017) of the UK Community Innovation Survey (UKIS). All models are estimated using firm and year fixed effects (FE) method to control for endogeneity that arises from unobserved heterogeneity. Endogeneity and robustness tests were carried out to ensure the validity of results.FindingsThe results show that firms do use dynamic openness strategies over time leveraging learning from past searches. Specifically, the study indicates that closing down is not an effective strategy for either type of innovation. For process innovation, firms should pursue opening up strategy rather than persistent open strategy, whereas for product innovation firms could pursue either strategy, highlighting important contextual differences.Originality/valueThe paper contributes to the literature on knowledge acquisition in open innovation: (1) by theorizing the underlying reasons – learning from past collaborations, absorptive capacity and external knowledge heterogeneity – why firms pursue one dynamic openness strategy over another and (2) by extending literature by delineating the dynamic openness strategies that firms should pursue in process innovation vs product innovation.

Linking External Knowledge Search to Innovation Ambidexterity in SMEs

The purpose of this study is to investigate the effect of external knowledge search strategy on innovation ambidexterity for SMEs. In order to achieve the purpose of research, hypotheses were set up by dividing exploitative knowledge sources and exploitative knowledge. Based on the Tobit regression analysis results by using the 975 data of Science and Technology Policy Institute, this research provides four findings as follows: First, exploitative knowledge breadth positively and significantly influences innovation ambidexterity. Second, exploitative knowledge depth positively and significantly influences innovation ambidexterity. Third, explorative knowledge breadth positively and significantly influences innovation ambidexterity. Lastly, the relationship between explorative knowledge significantly influences innovation ambidexterity. The results indicate that their knowledge search strategies ware significant driver of their innovation ambidexterity. In the final conclusion section implications and limitations of research results and suggestion for future research are discussed.

Absorptive Capacity, External Knowledge Search, and Radical Innovation: A fsQCA Analysis

Radical innovation requires firms’ ability to utilize external knowledge in the innovation process. Taking a fuzzy-set qualitative comparative analysis (fsQCA) approach, this study explores the relationship between a firm’s absorptive capacity, external knowledge search strategies, and radical innovation from a holistic perspective. The results verified the complex complementarities between external knowledge search and absorptive capacity in affecting radical innovation and indicated a number of different configurational paths for high radical innovations. This study extends the theoretical framework of absorptive capacity, resolves competing findings in external knowledge search literature, and provides different pathways to high radical innovations.

외부지식 탐색 전략이 기업의 상품혁신에 미치는 영향

기업의 상품혁신은 혁신의 참신성에 따라 참신성이 높은 급진적 상품혁신과 참신성이 낮은 점진적 상품혁신으로 구분할 수 있다. 본 연구는 2016년 한국기업혁신조사 제조업과 서비스업 부문 자료를 활용하여 기업의 외부지식 탐색 전략을 과학지향 탐색 전략, 시장지향 탐색 전략, 공개지식 탐색 전략으로 구분하여 참신성의 수준에 따른 상품혁신에 미치는 영향을 실증 분석 하였다. 추정 결과에 따르면 기업의 외부지식 탐색 전략에 따라 참신성 수준에 따른 상품혁신에 미치는 효과가 다른 것으로 나타났다. 공개지식 탐색 전략은 급진적 상품혁신과 점진적 상품혁신 모두에 유의한 긍정적인 영향을 주는 것으로 나타났다. 반면, 과학지향 탐색 전략은 급진적 상품혁신에는 유의한 긍정적인 영향을 주지만 점진적 상품혁신에는 유의한 영향을 주지 않는 것으로 나타났다. 이와 반대로, 시장지향 탐색 전략은 급진적 상품혁신에는 유의한 영향을 주지 않고, 점진적 상품혁신에는 유의한 긍정적 영향을 주는 것으로 나타났다. 외부지식 탐색 전략의 상품혁신에의 영향을 섹터별로 분석한 결과, 과학지향 탐색전략은 기술수준이 높은 섹터의 급진적 상품혁신에서 긍정적 영향이 크게 나타나고, 시장지향 탐색 전략은 중간재 섹터의 점진적 상품혁신에서 긍정적 영향이 크게 나타났다.

Superior position equal to greater influence? The moderating role of technological complexity

PurposeTechnological standardization can promote the development of complex products and systems (CoPS) (e.g. large aircraft, high-speed trains). Many studies argue that a superior network position contributes to improving a firm's ability to innovate; however, few studies have considered the aforementioned line of research as falling under the purview of CoPS standardization. This study focuses on CoPS integrators, which hold the most important enterprise roles in CoPS manufacturing and innovation, to analyze whether the two types of superior positions (i.e. the central position and the brokerage position) help the integrator influence the standardization process in a process moderated by technological complexity.Design/methodology/approachConsidering the outstanding market performance of the railway transportation industry in China, the abundance of cooperative activities in this industry, and data availability, we adopt integrators from this industry as samples for the empirical analysis in this study. A negative binomial regression analysis with random effects was conducted to analyze the acquired panel data.FindingsThe results show that the central position has an inverted U-shaped effect on the integrator's ability to influence standardization and that the brokerage position has a positive effect. We also find that the underlying mechanism of the two types of network positions impacts the integrator's ability to influence standardization and that it has two modes: knowledge integration in related domains and knowledge integration in nonrelated domains. Moreover, technological complexity attenuates the effect of the central position and strengthens the effect of the brokerage position on the integrator's ability to influence standardization.Originality/valueThis paper contributes to the theoretical research on CoPS manufacturing and innovation and complements knowledge-based theory. The results could prove enlightening for integrators facing complex technological environments, allowing them to establish a reasonable external knowledge search strategy and choose appropriate cooperation partners according to their knowledge domains.

Ambidexterity in External Knowledge Search Strategies and Innovation Performance: Mediating Role of Balanced Innovation and Moderating Role of Absorptive Capacity

The importance of external knowledge acquisition for innovation by firms is well established. In particular, there has been an increasing focus on the two distinct modes of firms’ external search strategies, which have a differential effect on their learning and innovation: search breadth and depth. By applying organizational ambidexterity lens, we hypothesize that pursuing high levels of both external search strategies is beneficial to achieve a balance between exploitative and explorative innovation, which, in turn, has a positive impact on the firm’s innovation performance. We also hypothesize that, even among the firms that maintain high levels of both search strategies, firms with higher absorptive capacity better achieve a balance between both modes of innovation, thereby producing higher performance. The findings on a multi-industry sample of Koran manufacturing firms confirm our hypotheses and imply that it is essential for firms to develop capabilities for different modes of external search activities in conjunction with internal absorptive capacity for superior innovation performance.

The double-edged effect of knowledge search on innovation generations

PurposeThe purpose of this paper is to investigate alliance partner diversity (APD) as a driving force that potentially enhances firms’ innovation generation (IG) in interfirm open alliance contexts. The authors propose that APD enhances IG but that the effects depend on both alliance network position and the double-edged external knowledge search strategy. Building on the knowledge-based view and social capital theory, the authors formally model how external knowledge search strategies can lead to productive or destructive acquisitions of external knowledge in interfirm open alliance networks. The authors theorize that when an individual firm adopts a central position in a complex interfirm open alliance network, its propensity toward beneficial IG depends on its knowledge search strategy (i.e. its breadth and depth) due to the joint influence of network position and knowledge search strategy on innovation.Design/methodology/approachUsing an original large-scale survey of high-tech firms, this study shows that the relationship between partner diversity and IG is contingent on a firm’s network position and knowledge search strategy. The authors also offer an original analysis of how knowledge search strategy (i.e. its breadth and depth) in network centrality (NC) affects the efficacy of knowledge acquisition in interfirm open alliance networks. Empirically, the authors provide an original contribution to the open innovation literature by integrating social capital and knowledge-based theory to rigorously measure firm IG.FindingsOverall, our findings suggest that the knowledge search strategy imparts a double-edged effect that may promote or interfere with external knowledge in IG in the context of the diversity of alliance partners.Research limitations/implicationsThe work has important limitations, such as its analysis of a single industry in the empirical models. Therefore, further studies should consider multiple industries that may provide useful insights into innovation decisions.Practical implicationsExternal knowledge search is valuable, particularly in the high-tech industry, as external knowledge acquisition generates innovation output. This study serves to raise managers’ awareness of various approaches to external knowledge searches and highlights the importance of network position in knowledge acquisition from interfirm open alliance collaborations.Originality/valueThis paper is the first to investigate the double-edged effect of knowledge search on interfirm open alliance networks. It also contributes to the theoretical and practical literature on interfirm open alliance networks by reflecting on external knowledge search and underlying network centrality and APD factors.

Export Performance in SMEs: The Importance of External Knowledge Search Strategies and Absorptive Capacity

External knowledge search strategies are considered essential for increasing export performance, a crucial goal for small and medium enterprises (SMEs) in a globalised and turbulent environment. SMEs are known to have limited resources, which leads them to choose the export strategy as the best alternative for entering foreign markets. The present study analyses the link between industrial and non-industrial knowledge search strategies and export performance, taking into account absorptive capacity (AC) as a mediating variable. Results from a sample of 222 Spanish exporting SMEs reveal that orientation to collaborate with industrial partners contributes to firms’ AC and export performance. Moreover, AC is found to have a full mediating role between orientation to collaborate with industrial partners and export performance. The study makes a novel contribution by applying organisational learning theory to explain how both the strategies firms adopt to access external knowledge and their absorptive capacity affect their export performance.

Building absorptive capacity through firm openness in the context of a less-open country

We explore the roles that potential and realized absorptive capacity play in enhancing firm performance, and examine external knowledge search strategies as antecedents of absorptive capacity. In this way, we endeavor to open the black box that sits between external knowledge search and performance, and suggest that the establishment of deep and broad relationships with external sources has differing impacts on potential and realized absorptive capacity for the firm. We argue that distinguishing clearly between potential and realized absorptive capacity may provide new insights into understanding why some companies are more successful than others at benefiting from external knowledge. A sample of 171 suppliers operating in the Iranian automotive industry is used to test the proposed theoretical model, through a two-stage least squares approach. Surprisingly, our results indicate that only the firm's capability to acquire and assimilate new ideas from the external environment (potential absorptive capacity) is related to performance for these firms operating in Iran, which been isolated from global markets due to international sanctions. Our findings emphasize the notion that potential and realized absorptive capacity represent distinct capabilities, with different antecedents and different impacts on firm performance.

Innovation type and external knowledge search strategies in KIBS: evidence from Canada

Do different types of innovation require distinct kinds of external knowledge search strategies? This paper explores this question using an original innovation survey of 385 KIBS firms in Ontario (Canada). Applying ordered regression analysis, we show that KIBS which conduct marketing innovation have higher degrees of external knowledge sourcing than those that engage in other types of innovation. KIBS that conduct product innovation have higher degrees of external partnering than those that focus more intensively on other types of innovation.

DETERMINANTS OF FIRM’S INNOVATION-RELATED EXTERNAL KNOWLEDGE SEARCH STRATEGY: THE ROLE OF POTENTIAL ABSORPTIVE CAPACITY AND APPROPRIABILITY REGIME

Firms, especially those in the knowledge-based economy, make increasing use of external knowledge in their innovation processes. To tap into external knowledge sources, the firm follows a search strategy, which is known to be affected by both endogenous and exogenous factors. This study examines the influence of potential absorptive capacity on firms’ external knowledge search strategy. We also propose and test a moderation effect of the appropriability regime on this relationship. Based on a panel dataset of 170 international firms from various industries, we find a curvilinear relationship between the level of a firm’s potential absorptive capacity and the external knowledge search breadth. We also confirm the moderating role of the appropriability regime on this relationship. Our results highlight the role of the endogenous and exogenous factors determining the firm’s use of external knowledge in the innovation process.

Absorptive routines and international patent performance

Patents on an international level are essential for firm results. Accordingly, the use of external sources of knowledge acquires crucial importance to get global innovations and create competitive advantages. For that reason, the literature has highlighted the strategic role of the absorptive capacity construct.We enrich the treatment of the absorptive capacity phases including the moderating effects between routines associated to the traditional potential-realized absorptive capacities. Taking into account external knowledge search strategies, the deeper external relationships, the better transference and appropriation of specific external knowledge. Nevertheless, when the moderating role of assimilation is included, cooperation agreements appear as the most efficient source of external knowledge. Finally, we show that technological tools let firms store and structure the information making easier its use for international patenting. This positive effect is reinforced in the presence of exploitation routines, since technological knowledge will better fit to the industry's key factors of success.

Complementarity of firms' innovation strategies: knowledge search, in-house R&D and external R&D acquisition

We use data from over 1,500 Finnish companies for the years 2006-2008 and 2008-2010 to explore the complementarity of firms' in-house and external R&D strategies with external knowledge search and innovation collaboration strategies. We find that the complementarity of internal and external R&D is asymmetric. The order in which the R&D strategies are adopted matters for the complementarity of strategies. We define search breadth complementarity (tacit knowledge complementarity) of R&D capabilities to exist when a firm's broader external knowledge search (deeper innovation collaboration with external partners) also increases its marginal returns from R&D investments, and vice versa. Our estimation results provide support for the search breadth complementarity and tacit knowledge complementarity of the strategy combining in-house R&D and the acquisition of external R&D. Our empirical exploration further suggests that a broader external knowledge search strategy may decrease the asymmetry between in-house R&D and external R&D.

Depth and breadth of external knowledge search and performance: The mediating role of absorptive capacity

Nowadays it is commonly accepted that exploiting external knowledge sources is important for firms' innovation and performance. However, it is still not clear how this effect takes place and what internal capabilities are involved in the process. We propose to open the black box between external knowledge search strategies, and innovation and performance by proposing absorptive capacity (AC) as the mediating variable. A sample of 102 biotechnology firms from Spain is used to test the proposed theoretical model through structural equation modeling taking the partial least squares approach. Results suggest that AC acts as a full mediator in the relationship between the depth of external knowledge search and the innovation and business performance of the firm. Finally, some suggestions for managers and future lines of research are highlighted.

Search more deeply or search more broadly? An empirical study of external knowledge search strategy in manufacturing SMEs

Will small- and medium-sized enterprises (SMEs) in emerging economies search more deeply or search more broadly for product innovation at high levels of environmental turbulence? In answering this question, unlike prior studies that treat search depth and search breadth as separate variables to measure firms’ external knowledge search strategy, this study introduces a new concept, external search towards depth-dominance, to capture the trade-off between search depth and search breadth for SMEs in a resource-constrained context. Using data on 491 Chinese manufacturing SMEs, we find that SMEs search more deeply at high levels of technological and market turbulence. Moreover, the positive relationship between perceived technological turbulence (or perceived market turbulence) and external search towards depth-dominance is stronger when the differentiation propensity of a firm's competitive strategy is lower. The findings contribute to the understanding of innovation search in a resource-constrained context and the context specificity of innovation search.

Shaping the firm’s external search strategy

This paper explores the determinants of external knowledge search strategies, specifically, exploitative and exploratory searches. The literature emphasizes environmental context and technological resources, especially R&D, as important determinants of the search strategy. In this paper we focus on two types of the firm’s formal structure: formalized and decentralized structures. The study uses survey data from the ceramic tile industry in Spain. The results show that a competitive environment and a decentralized organizational structure play a role in shaping the firm’s external search strategy, but that R&D has no effect. We find that competition inhibits exploratory search, while a decentralized firm structure encourages the use of this type of search strategy to the detriment of exploitative search. Our results emphasize that the mechanisms driving exploratory and exploitative searches are intrinsically different.

External Knowledge Search Strategies in China's Technology Ventures: The Role of Managerial Interpretations and Ties

AbstractDrawing on the threat-rigidity hypothesis, we examine how managerial opportunity and threat interpretations of external environments affect a technology venture's choice of external knowledge search strategies in an emerging market. Results from a sample of 141 technology ventures in China reveal that opportunity interpretation directly and positively influences both the breadth and depth of external search, whereas threat interpretation directly and negatively influences only external search depth. Furthermore, managerial ties strengthen the positive relationship between opportunity interpretation and external search breadth but weaken the positive relationship on external search depth. Managerial ties weaken the negative relationship between threat interpretation and external search breadth but strengthen the negative relationship on external search depth. Implications for both research and practice are offered.

The influence of scope, depth, and orientation of external technology sources on the innovative performance of Chinese firms

It is commonly accepted nowadays that external knowledge sources are important for firms' innovative performance. However, it is still not clear, what dimensions of firms' external knowledge search strategy are crucial in determining their innovation success and whether these search strategies are contingent on different innovation modes. In this study, we analyse how the innovative performance is affected by the scope, depth, and orientation of firms' external search strategies. We apply this analysis to firms using STI (science, technology and innovation) and DUI (doing, using and interacting) innovation modes. Based on a survey among firms in China, we find that greater scope and depth of openness for both innovation modes improves innovative performance indicating that open innovation is also relevant beyond science and technology based innovation. Furthermore, we find that decreasing returns in external search strategies, suggested by Laursen and Salter (2006), are not always present and are contingent on the innovation modes. Next, we find that the type of external partners (we label it “orientation of openness”) is crucial in explaining innovative performance and that firms using DUI or STI innovation modes have different sets of relevant innovation partners. This shows that the orientation of openness is an important dimension—in addition to the scope and depth of openness. As respondents are located in China, this study provides evidence that open innovation is also relevant in developing countries.