Knowledge-based Sectors Research Articles

Unlocking the role of managers in self-managing teams

PurposeRecent reports show that knowledge-based sectors contribute significantly to the global economy and underscore the importance of innovation. Innovation in both products and processes is vital to maintaining competitiveness. Self-managing teams, emphasizing autonomy and limiting the role of management, have been viewed as a solution to encourage innovation. However, management's efforts to coordinate and align employees with the organization's interests can inadvertently stifle innovation. Achieving the appropriate balance between granting employees autonomy and retaining managerial involvement is paramount, creating a paradox known as the control-autonomy dilemma. This article highlights the importance of perceived managerial support to strike the appropriate balance.Design/methodology/approachPractitioner paperFindingsTo address the control-autonomy dilemma, organizational practices that balance management control and employee autonomy are crucial. These include input practices that emphasize skill development and/or output practices that set clear goals. With self-rule, maintaining perceived managerial support becomes harder. Without it, employees may hesitate to engage in innovative behaviors. While not needing constant supervision, employees do need to have the perception that their managers provide essential resources and motivation for their work.Originality/valueThis paper is the first to highlight how the level of perceived managerial support (PMS) will differ due to the nature of the organizational practices and the type of innovation.

Driving new product development performance: Intellectual capital antecedents and the moderating role of innovation culture

As the expenses associated with new product development (NPD) continue to rise, intellectual capital (IC) plays a critical yet understudied role in influencing NPD performance (NPDP). To address this, we present a comprehensive theoretical framework to empirically analyze how IC provides pharmaceutical companies with essential capabilities to enhance NPDP through the perspective of organizational learning (OL). This study employs a multi-source, time-lagged, and survey-based approach to gather relevant data from pharmaceutical companies. The findings reveal positive relationships between IC components—human, structural, and relational capital— and OL. Moreover, OL emerges as a pivotal predictor of the link between IC components and NPDP. Notably, we uncover that the association between OL and NPDP is moderated by the presence of an innovation culture within organizations. This research significantly contributes to the existing literature by providing new empirical insights into the strategic role of IC in promoting the creation and dissemination of new knowledge within organizations. These insights have substantial implications for practitioners and academics by bolstering firms' capacity for NPDP in knowledge-based sectors.

Generativni modeli veštačke inteligencije - zauzdati još jednu tehnološku revoluciju

Generative AI promises to revolutionize many industries (entertainment, marketing, healthcare, finance, and research) by empowering machines to create new data content inspired by existing data. It experienced exponential growth in recent years. In 2023 breakout year Gen AI impact reached 2.6-4.4 trillion USD (2.5-4.2% of global GDP). The development of modern LLM-based models has been facilitated by improvements in computing power, data availability, and algorithms. These models have diverse applications in text, visual, audio, and code generation across various domains. Leading companies are rapidly deploying Gen AI for strategic decision-making at corporate executive levels. While AI-related risks have been identified, mitigation measures are still in early stages. Leaders in Gen AI adoption anticipate workforce changes and re-skilling needs. Gen AI is primarily used for text functions, big data analysis, and customer services, with the strongest impact in knowledge-based sectors. High-performing AI companies prioritize revenue generation over cost reduction, rapidly expand the use of Gen AI across various business functions, and link business value to organizational performance and structure. There is a notable lack of attention to addressing broader societal risks and the impact on the labor force. Gen AI creates new job opportunities and improves productivity in key areas. Future investment in AI is expected to rise. Concerns about the potential AI singularity, where machines surpass human intelligence, are subject to debate. Some view singularity as a risk, others are more optimistic based on human control and societal constraints. Leading experts in Gen AI predict that the coming decade can be the most prosperous in history if we manage to harness the benefits of Gen AI and control its downside.

The Role of Higher Education Institutes in Achieving the Gole of Developing

India, a nation known for its rich cultural heritage and diverse demographics, has set forth ambitious goals for its development trajectory. In this pursuit, higher education institutes emerge as pivotal agents, shaping the intellectual, social, and economic landscape of the country. This paper explores the multifaceted role of higher education institutes in India’s development agenda. Through a comprehensive review of literature, policy analysis, and case studies, it elucidates the challenges, opportunities, and strategies for leveraging higher education to propel India towards sustainable development. The findings underscore the imperative for collaborative efforts among stakeholders to foster innovation, inclusivity, and excellence in higher education, thereby catalyzing India’s journey toward prosperity and global leadership. As India strives towards the ambitious vision of Viksit Bharat (“Developed India”) by 2047, higher education institutions (HEIs) stand at a crucial juncture, poised to play a transformative role in this national endeavor. HEIs serve as talent factories, equipping individuals with industry-relevant skills and fostering innovation through research and entrepreneurship. This drives economic growth, technological advancement, and job creation, particularly in knowledge-based sectors. HEIs act as pillars of social empowerment by promoting inclusivity, critical thinking, and lifelong learning. They contribute to closing the gender gap, improving healthcare access, and upholding human rights, leading to a more equitable and just society. HEIs nurture responsible citizens who actively participate in democratic processes. They foster critical analysis, encourage informed choices, and promote transparency, strengthening democratic institutions and governance.

SOCIAL CAPITAL IN KNOWLEDGE MANAGEMENT SYSTEMS FOR THE CREATIVE INDUSTRY SECTOR

The primary aim of this scholarly article is to examine the significance of social capital within the context of knowledge management systems (KMS) in the creative industry literature. The research adopts a comprehensive approach by employing both conceptual and literature analysis and empirical quantitative and qualitative investigations for validation purposes. According to existing literature, KMS is an essential organizational process and tool for acquiring, converting, applying, and safeguarding knowledge from internal and external sources, facilitating its utilization, development, and effective management.
 The findings of this study reveal that specific organizations acquire knowledge primarily through internal research and development (R&D) processes. However, in contrast, the creative industry heavily relies on knowledge stemming from social capital, including the social environment and community interactions. This social capital plays a pivotal role in providing the necessary knowledge required for the existence of the creative industry and its ability to generate innovative products that reflect the prevailing social context within which it operates. To analyze and classify prior research on the role of social capital for KMS in the creative industry, this study utilizes a meta-analysis as a robust analytical tool, building upon earlier works that have served as foundational pieces for this investigation.
 Previous research in the creative industry has demonstrated that knowledge acquisition within this domain results from a synergistic interplay between tacit knowledge and explicit knowledge obtained through diverse creative classes conducted within the industry. As a renewable resource-driven sector, the creative industry capitalizes on creativity, skill, and talent as valuable assets that can be leveraged for wealth generation, not only for significant enterprises but also for micro, small, and medium economies (UMKM), often orchestrated by local communities. This endeavor aims to stimulate employment opportunities by strategically exploiting intellectual property. Consequently, the creative industry can be regarded as a knowledge-based sector, necessitating the adept implementation of Knowledge Management Systems (KMS) in its operational framework.

Learning for sustainability - competences and expectations

Abstract The concept of sustainable development can play a key role for various knowledge-based sectors, a major factor in the educational system, focused on addressing the problems that exist and preventing new social, economic and environmental ones. The article examines the definition of sustainability, the point of learning aimed at environmental sustainability. The new European Sustainability Competence Framework that outlines the competencies necessary for the ecological transition, including critical thinking, initiatives, conservation of nature and taking responsibility for the negative impact of everyday actions and decisions on the environment and climate worldwide, has been examined here.

Territorial Distribution of Kazakhstan’s Knowledge-Intensive Sectors of the Economy: Opportunities and Prospects

The key strategic priorities of the development of Kazakhstan are diversification, technological modernization and formation of a new industrial structure. It is clear that modern industrial structure is impossible to be formed with-out knowledge-based industries and fields, and prerequisites for their development in the regions of Kazakhstan differ significantly. The goal of this article is to assess the prerequisites and prospects of spatial development of knowledge-based sectors of Kazakhstan’s economy. The methodology of the article is based on the theoretical and methodological provision that possibilities for the development of knowledge-based economy in local territories and at certain points depend of specific factors such as availability of research and academic organizations in the territory. System-structural and functional approaches, methods of empirical research, including observation, comparison, generalization, systematization, methods of analysis and synthesis, logical analysis, methods of regional studies, and cluster analysis were used. There was used as the information base of the research the data reflected in the periodical press, the data of ministries, works of scientists of Kazakhstan and copyright developments under the framework of the study of innovation localization process and knowledge-based sectors of the economy. It is shown that development of knowl-edge-based sectors of economy in Kazakhstan will not be widespread, but will have a «cellular nature», located inside the boundaries of separate territories or «high-tech districts» (knowledge-based hubs, knowledge-based clusters, and smart cities) and perspectives of their development will be considered. The results of the research have been tested while recommendations development on issues of Kazakhstan territories’ technological modernization.

Driving Factors of Economic Diversification in Resource-Rich Countries via Panel Data Evidence

Economic diversification is an essential aspect of sustainable development as diversification enhances macroeconomic stability and promotes structural and long-term transformation not only in the economy but also in other pillars of development such as social institutions and dimensions. There is empirical evidence suggesting an impact of economic and structural factors on diversification. However, there is no consensus on the results in the literature because of various factors, such as the employment of different variables, methodologies, countries, and periods. This paper empirically explores the relations driving economic diversification in 14 resource-rich countries between 2001 and 2019, with six alternative models. In this regard, feasible generalized least squares regression was employed for the proposed model specifications. It provides strong evidence that gross capital formation, financial development, labor force participation, education, and the rule of law have statistically significant and positive impacts on economic diversification performance. On the other hand, inward foreign direct investment, real GDP growth, and self-employment rate also have statistically significant, but negative, impacts on economic diversification, probably because they further promote or are a result of resource-based growth rather than diversification into other technology- and knowledge-based sectors.

The Role of Intellectual Property in Innovation and Economic Growth of Indian MSMEs

Small and medium-sized enterprises (SMEs) are backbone of India’s manufacturing industry and play an important role in India’s stable money supply growth. There are more than billions of SMEs in India, with an investment of more than 1 billion rupees. The sector has recorded strong growth during past fiscal years and contributes approx. 6.11 per cent to country’s manufacturing GDP and 24.63 per cent of the GDP from service activities as well as 33.4 per cent of India’s manufacturing output. Approximately 70 per cent of employment growth comes from Asian MSMEs, which account for 90 per cent of Indian industrial companies and 40 per cent of manufacturing value added. India is estimated to have more than 13 million SMEs with 42 million employees. For these reasons, it is very important for these companies to invest in their intellectual property (IP). By introducing unique brand and product names, each retailer can ensure the high replacement cost and market position of its products and/or services. IP and its worth are usually neglected. IP is a major aspect in daily business practices in an increasingly knowledge-based sector. New technologies, brands and innovative designs are introduced to the market nearly every single day, as a result of human continual innovation and creativity. As a result, the necessity of intellectual property rights to MSMEs in product development as well as some success stories is reviewed in this manuscript. This article also showed how IP has evolved into a business tool to counter the challenge that MSMEs confront in applying the IP system.

Multi-local living employees in Stuttgart and Milan. An analysis of their employer support for the spatial-temporal organisation of their living arrangements

With work-related living in several places – also known as multi-local living – on the rise due to flexible working and living environments, employers are increasingly challenged to support multi-local living arrangements in order to recruit and retain qualified employees nationwide. This paper presents the first results of an analysis conducted in the cities of Stuttgart in Germany and Milan in Italy. With the help of semi-structured problem-oriented interviews with multi-local employees in knowledge-based sectors, their requirements and the benefits they currently receive from their employers in support of their living arrangements are examined. The results show, among other things, that in both cities certain types of companies are more open to these living arrangements. However, few employers were found to have official policies for dealing with multi-locality. Furthermore, it is shown that different types of multi-local employees require different support. The paper also discusses interactions between workrelated multi-locality and spatial development.

Recent advances in biological systems for improving indoor air quality

Studies on human exposure to indoor air pollution reveal that indoor environments could be at least twice as polluted as outdoor environments. Indoor air pollution has not received as much attention than outdoor air pollution, despite an adult spending now most of the time indoors as a result of the global shift in the economy from the manufacturing sector towards the service and knowledge-based sectors, which operate in indoor office environments. Additionally, the health threats caused by a long-term exposure to indoor air pollution have become more apparent over the last decades as buildings are progressively sealed against the outside climate conditions to obtain heating and cooling energy cost savings and in response to stricter safety guidelines. Currently there is not a single technology that can efficiently provide a complete and satisfactory purification of indoor air. Biological systems for improving indoor air quality are promising, but challenges need to be examined to properly address the bioavailability of low pollutant concentrations, guarantee microbial safety, and incorporate CO2-removal. This study presents the recent research advances in biological indoor air purification methods as a ‘green’ alternative to physical–chemical methods, with emphasis on current challenges and opportunities it can provide for improving Indoor Environment Quality, building energy cost savings and improvements on indoor comfort and well-being.

Spatial Spillover of Product Innovation in the Manufacturing Sector: Evidence from India

This study analyzes the geography of innovation in India by performing exploratory spatial data analysis (ESDA) on the product innovation of the manufacturing sector of the 23 states for the year 2013–2014. It is found that spatial clustering is prevalent for product innovation majorly among the northern region, and these results are also supported by local indicators of spatial association (LISA) statistics. This exploratory spatial data analysis is extended to the sub-sectoral product innovation categorized as “analytical” and “synthetic” knowledge-based sectors that constitute applied research and basic research. It is found that analytical knowledge or applied research is relatively more concentrated than synthetic knowledge or basic research. Further, based on ordinary least square (OLS) and spatially lagged X (SLX) model, this study found that the manufacturing sector’s product innovation for each region is positively influenced by access to finance, formal research, and age. This study is based on “The India 2014 Enterprise Survey Data Set” collected by the World Bank Group.

Mediating Role of Knowledge Management in the Relationship between Organizational Learning and Sustainable Organizational Performance

Organizations operating in the intensive knowledge-based sector seek efficient management approaches and sustainable development practices to perform efficiently in the dynamic business environment. Knowledge management practice and organizational learning are significant factors in order to achieve sustainable organizational performance in a rapidly changing business environment. Based on the scientific literature analysis, there is still a lack of evidence related to the mediating role of the whole knowledge management cycle, including the five knowledge management processes (knowledge acquisition, creation, storage, sharing, and application) in the relationship between organizational learning and sustainable organizational performance for organizations operating in intensive knowledge-based sectors. This study aimed to examine the impact of the whole knowledge management cycle on the relationship between organizational learning and sustainable organizational performance in intensive knowledge-based sectors, specifically the audit and consulting companies in the Middle East region. Systematic scientific literature analysis, expert evaluation (structured questionnaire), and structural equation modeling (SEM) technique were used to develop and verify the research model. Data was collected through a structured questionnaire distributed among auditing experts working in a knowledge-based sector—audit and consulting companies in the Middle East region. The research results supported the hypotheses stating that organizational learning positively affects knowledge acquisition, storage, sharing, application processes, and sustainable organizational performance. However, the results verified that organizational learning has an insignificant impact on the Middle Eastern audit and consulting companies’ knowledge creation process.

Impact of intellectual capital on the financing of startups with new business models

PurposeFinancing investments in a knowledge-intensive sector may be more difficult as there is a greater degree of uncertainty and asymmetries of information. This paper aims to examine whether a company’s intellectual capital (human capital, relational capital and structural capital) can serve as a quality signal in the financing of health care startups with new business models.Design/methodology/approachThe study constructed a manual database using several paid and unpaid databases. This paper collected random data from 204 startups that obtained funding during the 2014–2017 period and used signaling theory to examine the factors that impact access to external financing for Indian health care technology startups.FindingsThis paper found that venture capitalists partly base their financing decisions on the relational capital of the startup represented by startups’ age and the average number of website visits, the presence of a syndicate of investors. Human capital variables and structural variables do not show much significant impact. This paper also find some business models show a negative impact on financing implying that investors are reluctant to invest in new technologies that carry more uncertainty and take a longer time to become profitable.Research limitations/implicationsBefore concluding this paper, it is important to acknowledge the limitations of the study and some implications for future research purposes. First, the study is conducted on only 204 startups from India, and as such, it suffers from a small sample size, like many other comparable survey-based studies in entrepreneurship. Second, the results are obtained with respect to data collected from Indian startups and represent the Indian context which limits the generalization on a global level.Practical implicationsThe results suggest that years of experience and prior relevant experience, do not actually impact the financing of a new venture. These results are crucial as India has a unique demographic advantage over other countries in relation to age. If young minds are adequately nurtured, this can result in innovation, entrepreneurship and job creation (which still remains as a foremost challenge for India).Social implicationsFrom a policy perspective, a number of implications emerge from the current study. There is a need for ameliorating the capacity of the education system in providing top-quality support including a greater focus on entrepreneurship courses and to replicate the education delivery model from top foreign institutes. The government should take this opportunity to revive the system of education and follow the methodology of elite institutes and to develop entrepreneurship spirit in other colleges and schools.Originality/valueFinancing the investments of young startups with new business models in knowledge-based sectors may be more difficult. In this paper, this paper demonstrates that startups have to effectively use and manage their intellectual assets to achieve sustainable competitive advantage. The findings of the paper emphasize the role of intellectual capital in securing financing through venture capital.

Entrepreneurial orientation and firm performance in a sanctioned economy – does the CEO play a role?

PurposeEntrepreneurship, in many low-resilient economies, plays a critical role in overcoming external shocks. Thus, it is crucial in such situation that entrepreneurial firms can survive and even grow so that the whole economy can benefit from a higher level of resilience. The purpose of this study is to understand how entrepreneurial orientation (EO) brings about firms' performance through the moderating role of CEOs' self-transcendence values in the context of a low-resilient sanctioned economy.Design/methodology/approachThis is a quantitative research that employs hierarchical regression analysis of a sample of 114 Iranian entrepreneurial firms composed of 62 knowledge-based and 52 creative firms.FindingsThe analysis revealed that in the low-resilient sanctioned economy, Iran, EO-performance link is moderated by the level of CEOs' self-transcendence value, that is, higher level of CEO self-transcendence leads to stronger impact of EO on performance. This moderation is not different in creative sector vs. knowledge-based sector of the economy.Originality/valueThis paper addresses a major gap in the traditional EO-performance relationship which is related to the role of CEO values. Also, the context of Iran's low level of economic resilience adds more novelty to this study, emphasizing on the role of CEO personal values of self-transcendence in times of crisis. The results could also be generalized in many economies now facing the COVID-19 pandemic crisis during which CEOs' self-transcendence values are vitally important in overcoming the difficulties of doing business in such situation.

Intellectual Property Rights for Tourism-Related Traditional Knowledge: A Case Study of Sri Lanka

Sri Lanka is blessed with a century-old treasure trove of traditional knowledge and tourism is a key to unlock the hidden potential of Sri Lankan traditional knowledge for socio-economic and cultural development of the country. A prime example in this regard is the indigenous medical system that has existed for centuries. In today’s competitive business environment, intellectual property is the lifeblood of any industry, and protecting intellectual property assets is imperative to business success. In this sense, the intellectual property system offers the much-needed credibility for Sri Lankan traditional knowledge-based products and services. Undeniably, Ayurveda and indigenous medical systems have the potential to create unique experiences to attract tourists with a higher spending power. Moreover, historical monuments and heritage sites, cultural events, museums and other traditional knowledge-related activities are vital for promoting cultural tourism in Sri Lanka, just as traditional cultural performances constitute a source of tourist attraction and interest. Most significantly, intellectual property tools can help improve competitiveness in wellness tourism and other traditional knowledge-based sectors. It is, therefore, argued that linking intellectual property, traditional knowledge and tourism will significantly help Sri Lanka to become a 365-day tourist destination and ensure repeat visits by overcoming the elements of seasonality. Taking cognizance of the practical insights, this paper explores as to how best a carefully crafted intellectual property strategy can be utilized by traditional knowledge stakeholders to capitalize on business opportunities in the Sri Lankan tourism sector. It also highlights some of the important ways in which the intellectual property system can help position Sri Lanka as a global wellness tourism destination.

The role of universities on the consolidation of knowledge-based sectors: A spatial econometric analysis of KIBS formation rates in Spanish regions

This study evaluates how features related to the regional configuration of universities—i.e., the number of universities in a region and the proportion of public universities—influence the regional formation rate of knowledge-intensive business service (KIBS) firms. Using a sample of 47 Spanish regions (provinces) during 2009–2013, the results of the spatial econometric panel analysis give support to the argument that regions with a greater concentration of universities and with higher proportion of public universities attract more new KIBS firms. However, the findings also indicate a substitution effect between these university-based variables and the region's industry specialization. Thus, new KIBS businesses tend to locate in regions where they expect either stronger knowledge inputs from universities or higher demand from potential industrial customers. We also reveal the presence of interregional spillover effects. The paper offers insights on how territories may attract more knowledge-based businesses by encouraging the development of the local higher education system.

Elucidating the Effect of Learning Ability on Employees' Potential : A Study of IT Sector in India

It is seen that information technology (IT), being a knowledge-based sector, always faces a question of employee retention. Organizations have tried to get the answer of this question by exploring the ways to improve employees' satisfaction with their organizations. Proper exploitation of employees' potential may be felt as an answer to this question. Employees' potential is enhanced by improving learning ability. Thus, this study was designed with an aim to explore the effect of learning ability on employees' potential. An exhaustive literature review was done in order to confirm the variables of the study as well as to get the clear directions for the current research. A total of 455 employees of various IT sectors were investigated during the study. The survey was conducted during May 2016 and September 2017. Primary data were collected using a well-structured questionnaire. Employees' potential was explained through four dimensions, namely technical competencies, managerial competencies, interpersonal competencies, and personal competencies. The effect of learning ability on employees' potential was expounded by applying regression models. The results concluded that learning ability came out as a strong predictor of personal competencies and moderate predictor for managerial competencies. Technical competencies were not found to be significantly related to learning ability. Furthermore, a vice versa effect of personal competencies on learning ability was also extracted. In addition, managerial competencies, interpersonal competencies, and personal competencies exhibited a strong relationship.

Ukrainian innovative development: problems and paradoxes

Relevance of the research. Today's rapid global development is due to the latest technological changes brought about by another (fourth) industrial revolution, which opens up a window of opportunities for many countries to realize their intellectual potential and thus enhance their competitiveness. The innovative imperative, together with the government inclusive policy, remains a key driver of socio-economic growth and sustainable development. The subject of the research is innovative processes in Ukraine and factors that influence their course in the context of implementing the state innovation policy. The purpose of this article is to identify characteristic tendencies of the innovative development of Ukraine, to justify the identified problems and factors of influence, as well as to work out recommendations concerning directions for increasing the effectiveness of innovation policy in the implementation of socio-economic objectives, approved by the authorities. Methodology of work – the principles of innovation theories and economic growth; concepts of open innovation, innovative systems, 4.0-industry; the principles of the scientific and technological paradigm. The state of some innovation indicators has been assessed with the help of statistical analysis. Based on a systematic approach the problems of innovative development of Ukraine have been identified. Structuring and synthesis methods were used to develop proposals for strengthening the role of the innovation factor in ensuring economic growth. The results of the work are the following: the state of innovation processes in Ukraine is carried out and assessed, problems are identified and paradoxes are characterized – all that which makes the realization of the set goals of the state innovation policy more complicated and requires the development of measures to create a new model of the national innovation system. Conclusions. The negative phenomena in the sphere of innovation activity pose a threat to the economic and technological security of Ukraine, which requires urgent actions by both the senior political leadership of the state and the executive authorities at all levels. The creation of the innovative system based on the use of market mechanisms and the state active scientific, technological and innovation policy should be the basis for the development of knowledge-based sectors, their long-term competitiveness within the national borders and in the world markets.

Spatial changes in the command and control function of cities based on the corporate centre of gravity model

Abstract The aim of this paper is to discuss changes in the spatial distribution of cities that perform the command and control function created by the largest corporations, based on the method of gravity centres. The analysis was performed both for individual sectors of the economy as well as for the global scale. A shift occurred in an easterly direction. This also pertains to sector indices, although the centroids of knowledge-based sectors, such as information technology and healthcare, shifted the most in the direction of Asia. At the same time, information technology was the only sector whose centroid shifted to the west in the study period. Moreover, the magnitude of the shift of the centre of gravity of the number of corporate headquarters in the studied cities does not converge to the shift of the centroid based on the value of the financial potential of the companies.