External Search Depth Research Articles

Knowledge sourcing strategy and radical innovative performance: A temporal approach

Prior research on open innovation has so far taken a static view, by focusing on stable patterns of external knowledge sourcing that only depict a snapshot of a firm's external search at a given point in time. Such a static view, however, ignores the fact that a firm's portfolio of external knowledge sources evolves over time. Our study attempts to address this gap by clarifying how temporal variations in a firm's knowledge sourcing activities (i.e., changes in external search breadth and external search depth) affect its radical innovative performance. We conceptualize temporal variations as encompassing simple change events (i.e., single transformative events captured through increases or decreases in breadth and depth) and multiple change events (i.e., repeated changes captured through increases and/or decreases in breadth and depth); and then develop theoretical arguments that draw on the organization learning theory. We find that asymmetries emerge when comparing simple and multiple change events in external breadth and external depth. Our findings contribute to prior research on open innovation by providing insights into the temporal dynamics and evolution of knowledge sourcing activities.

The effect of external search depth on innovation performance: the mediating role of organisational innovation

The effect of external search depth on innovation performance: the mediating role of organisational innovation

The tensions between Openness Dimensions in Explaining Innovation Performance

While there is growing importance attributed to open innovation collaborations, the existing framework does not provide clear directions on how firms should distribute their attention to the depth and breadth of their external search strategy. To navigate this tension, we extend the open innovation framework to explore how the value of external search depth on customers for the firm innovation performance may be contingent on two key factors that generate relational and informational benefits: how firms coordinate their activities with clients and the external search breadth of their open innovation strategies. In a sample of Italian firms operating in knowledge-intensive business sectors (N = 358), the study shows that excessive involvement of clients can weaken the benefit of the external search depth yielding an inverted U-shaped relationship with innovation performance, but also that coordination mechanisms and the breadth of the external search strategy can, both separately and jointly, provide informational and relational opportunities that might help to deal with an excessive reliance on customers. This article proposes a novel perspective on open innovation that, exploring the tension between integration with a single source and differentiation with a variety of sources, suggests how firms can leverage multiple types of external collaborations, combining the depth and breadth components of the openness in their external search strategies, and situating them in an integrated relationship with customers.

Pengaruh Inovasi Terbuka Terhadap Kinerja Inovasi Pada UKM di Indonesia

This study aims to examine the effect of open innovation on product innovation and the innovation performance of SMEs in Indonesia. The source of data used in this study is secondary data obtained from Indonesia innovation survey (IIS) 2014 that covers 2011-2013 period. The analytical technique used in this research is descriptive analysis and SEM analysis using the AMOS statistic software. The results show that: (1) open innovation (external search breadth) had a positive effect on product innovation, by contrast open innovation (external search depth) had no significant effect on product innovation; (2) Internal R&D had a positive effect on product innovation, in contrast external R&D had no significant effect on product innovation; (3) collaborative practices has not had a positive effect on product innovation; (4) product innovation has a significant effect on innovation performance.

Exploring the asymmetric complementarity between external knowledge search and management innovation

This paper hypothesizes about and tests the conditions under which firms experience substitutional and complementary effects from the synchronous deployment of innovation search—in the form of external knowledge sourcing, and management innovation—in the form of new organizational processes, practices, and structures, on innovative performance. Theoretically, this represents an interesting puzzle as the extant literature offers two contradictory explanations regarding their synchronous effects, built on fundamentally different problem-solving mechanisms that expose distinct managerial challenges for coordinating external search activities. Specifically, we predict the existence of a substitutional effect between external search depth and management innovation, and a complementary effect between external search breadth and management innovation. We found strong evidence relevant to our theoretical predictions. Our study offers new theoretical insights regarding the synchronicity of innovation search and management innovation.

Contingency fit between open innovation and product market strategy: Evidence from Japanese firms

This research shows the contingency fit between open innovation and product market strategy. Prior research studies these two managerial concepts separately. This study combines these research streams and shows the contingency fit between them. To investigate open innovation in detail, this study analyzes open innovation from two aspects: external search breadth and depth. This study investigates the effects of these concepts on three research and development (R&D) outcomes: innovation performance, new product development (NPD) speed, and firm performance. This study uses questionnaires and archival data from Japanese firms. The results show that cost leadership strategy has a positive effect on firm profitability. Differentiation strategy has a positive effect on all three R&D outcomes. External search breadth barely has a positive effect on any of the R&D outcomes. External search depth has a positive effect on firm performance. When firms implement a cost leadership strategy, external search breadth has a positive and significant effect on both innovation performance and NPD speed. Under the same conditions, external search depth negatively correlates with innovation performance and firm performance. These results show that narrow and deep collaboration enhances R&D outcomes. Last, neither external search breadth nor depth has a significant effect on any of the R&D outcomes when firms implement a differentiation strategy. This study shows that open innovation by firms improves their R&D outcomes especially when firms select a cost leadership strategy. This research complements two prior research streams and indicates the possibilities and limitations of open innovation

The effect of external search depth on innovation performance: The mediating role of organizational innovation

The effect of external search depth on innovation performance: The mediating role of organizational innovation

The double-edged sword of external search in collaboration networks: embeddedness in knowledge networks as moderators

PurposeThe purpose of this paper is to analyze the inverted U-shaped relationship between external search in the collaboration network and firm innovation outcomes. It also seeks to explore whether these curvilinear relationships are moderated by the network centrality and structural holes in the knowledge network.Design/methodology/approachIn this empirical research, the authors collected a sample of patents in the smartphone industry over the period of 2000-2017. Then the authors examined the direct roles of external search breadth and depth in the collaboration network and the moderating role of network embeddedness in the knowledge network by using negative binomial regression.FindingsResults found that external search in the collaboration network contributes more to firm innovation outcomes when the breadth and depth of the external search are moderate rather than high or low. Furthermore, both network centrality and structural holes in the knowledge network have positive effects on the external search breadth – innovation outcomes and external search depth – innovation outcomes relationships.Research limitations/implicationsThe authors collected the patent data within the single industry and excluded other types of industries. This may limit the generalization of the findings.Practical implicationsThe paper has practical implications for adopting appropriate search strategies in the collaboration network and developing a better understanding of the effect of network embeddedness in the knowledge network on firm innovation outcomes. The findings suggest future directions for technology-intensive industries to improve their innovation output.Originality/valueThis study adds value to open innovation literature by pointing out a curvilinear relationship (inverted U-shaped) between external search breadth/depth and innovation outcomes in collaboration networks, in contrast to studies focused on firms’ external collaboration strategies in a certain industry context. Furthermore, this study reinforces the key contingent role of embeddedness in knowledge networks. This study provides a valuable theoretical framework of innovation outcome determinants by connecting the network perspective of open innovation theory with an embeddedness view.

The Impact of the Openness of Firms’ External Search Strategies on Exploratory Innovation and Exploitative Innovation

Innovation activities of private firms are crucial for sustainable economic growth in every society. Therefore, the majority of firms around the world spend large amounts of capital (money, time, and human resources) in searching for novel innovative opportunities in the marketplace. In our study, we sought to understand how the openness of firms’ external search strategies (external search breadth and external search depth) affects firms’ innovation capabilities as measured by awareness, decision-making, interpretation, and implementation capability. Furthermore, using survey data collected from 112 Chinese manufacturing firms over a six-month period, this study conducted an empirical analysis about the association between firms’ innovation capabilities on the type of innovation (exploratory innovation vs. exploitative innovation). This study also provides important managerial insights for manufacturing companies.

European MNE subsidiaries' embeddedness and innovation performance: Moderating role of external search depth and breadth

While much research has been conducted on the link between embeddedness and innovation outcomes, less attention has been paid on how and when MNE subsidiaries can effectively leverage their internal embeddedness to achieve greater innovation performance. We hypothesize knowledge transfer as a mediating mechanism to channel the potential role of MNE subsidiaries' internal embeddedness in innovation performance. Moreover, we explore the moderating influences of external search depth and breadth on subsidiaries' internal knowledge transfer and innovation performance. To test our framework, we rely on primary data collected from 91 subsidiaries of eleven European MNEs. The results show the degree of knowledge transfer from other MNE units mediates the link between subsidiaries' internal embeddedness and their innovation performance. We also find that external search depth positively moderates the link between the degree of knowledge transfer and subsidiary's innovation performance, while external search breadth does not. We illustrate that knowledge transfer mechanisms and the moderating role of external search approaches can be instrumental in channeling and effectively realizing the role of subsidiary internal embeddedness in innovation performance.

Formal and informal appropriation mechanisms: The role of openness and innovativeness

This paper analyses how firms’ degree of openness and innovativeness influence their use of formal and informal appropriation mechanisms. Patents, trademarks, copyrights, and design rights are formal appropriation mechanisms. Secrecy, lead-time, and complexity are examples of informal appropriation mechanisms. Both external search breadth and depth are positively associated with firms’ use of informal appropriation mechanisms, while only external search breadth is positively associated with formal appropriation mechanisms. Firms’ degree of radical (incremental) innovation orientation is negatively (positively) associated with their use of formal appropriation mechanisms. Analysis of the joint impact of openness and innovativeness, suggests that for radical innovators it is external search breadth (rather than depth) that has a positive association with the use of informal appropriation mechanisms. In contrast, for radical innovators external search depth (rather than breadth) is associated with the use of formal appropriation mechanisms. For incremental innovators, external search breadth (rather than depth) is associated with the use of both formal and informal appropriation mechanisms.

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 External Search Strategies on the Innovative Performance of Brazilian Firms

In this paper we attempt to analyse the influence of three dimensions of external search strategies on the innovative performance of Brazilian firms. The dimensions analysed were: external search breadth, external search depth which deal with how firms access external knowledge and the types of external innovation partners that emphasize the “with whom” to interact. The underlying findings are mainly derived and based on conclusive descriptive research that utilized a survey as an instrument of data collection. In relation to external search breadth the results suggest that the variety of external actors produces a positive impact on the innovative performance of Brazilian firms. As regards external search depth a curvilinear relationship was observed −taking an inverted U-shape−. The empirical analysis also indicated that there was a difference in the impact of different external actors on the innovative performance of Brazilian firms, only customers and/or users and suppliers presenting significant impact.

Paradigm Shift? Open Innovation and the Innovative Performance of EU Firms

It has been suggested that a paradigm shift is taking place, from the old model of product innovation based on in-house R&D, to a new model based on the intensive use of external sources (search depth). We test this using Eurostat CIS4 data for 40 sectors in 18 countries The findings of estimated GLM models suggest a more nuanced understanding of the role of external search is required. Internal R&D and firm size, rather than external search depth, are found to be the key factors affecting the performance of innovation leaders. Further, we find no evidence of a substitution effect between R&D and external sources for innovation leaders. External search is indentified as an important factor affecting the performance of innovation followers. There is also evidence of a substitution effect amongst these particular firms, indicating they replace formal R&D with openness, in order to acquire the information needed to catch-up with innovation leaders. These findings are consistent with the old innovation model,...

Paradigm Shift? Open Innovation and the Innovative Performance of EU Firms

It has been suggested that a paradigm shift is taking place, from the old model of product innovation based on in-house R&D, to a new model based on the intensive use of external sources (search depth). We test this using Eurostat CIS4 data for 40 sectors in 18 European countries. The findings of estimated GLM models suggest a more nuanced understanding of the role of external search is required. Internal R&D, rather than external search depth, are found to be the key factors affecting the performance of innovation leaders. Further, we find no evidence of a substitution effect between R&D and external sources for innovation leaders. External search is identified as an important factor affecting the performance of innovation followers. There is also evidence of a substitution effect amongst these particular firms, indicating they replace formal R&D with openness, in order to acquire the information needed to catch-up with innovation leaders. These findings are consistent with the old innovation model, cautioning against the suggestion that a paradigm shift has occurred.