Knowledge-intensive Firms Research Articles

The world city network: Evaluating top-down versus bottom-up approaches

The growth of the knowledge economy has led to new forms of business networks linking cities and towns across different spatial scales. Various attempts have been made to analyse these networks empirically using the interlocking network model of the Globalization and World Cities (GaWC) research network. Two approaches can be distinguished from a spatial perspective: a global ‘top-down’ approach that studies the world city network from the perspective of the largest advanced producer service firms, and a macro-regional ‘bottom-up’ approach that starts with the most important knowledge-intensive firms located within specific territorial boundaries. This paper compares and critically assesses the methodological implications and empirical outcomes of both approaches with reference to case studies of the German space economy. Both approaches pursue similar objectives: to investigate external relations of cities, both transnationally and on the national scale. Differences exist in the theoretical argumentation: the top-down approach is grounded in world city research; the bottom-up approach is anchored in debates in regional science and economic geography. In this paper, we argue for the need of scale-sensitive interpretations of connectivity patterns resulting from different approaches to the interlocking network model and conclude with some tentative recommendations for the methodological direction of future research in world city network studies.

Inevitable knowledge strategy

PurposeThe purpose of this paper is to determine the impact of strategic human resource management (HRM) practices and knowledge strategies on the performance of a sample of software companies in India.Design/methodology/approachThe sample chosen for this study was software professionals in India; the software companies were chosen based on their listing in the NASSCOM annual report, with financial turnover as the basis for classification. In order to measure the tangible and intangible outcomes, instruments used in this study include financial and non-economic performance.FindingsAs per the contingency approach, the fit between strategic HRM practices (staffing, general training, specific training, performance appraisal, performance feedback, reward and compensation and employee development) and knowledge strategy dimensions (consolidator, transformer and co-inventor) was observed and the results revealed that the moderation effect has had a positive impact on the firms’ performance.Practical implicationsInvestment in specific developmental programs for high-potential employees and quick learners will make knowledge-intensive firms financially sound in the long run. Through an appropriate reward strategy, employees who are capable of lateral and innovative thinking at work can be engaged in consistently delivering quality projects, which will have a significant positive impact on overall project costs and the financial performance of the firm.Originality/valueThe proposed model in this study can enhance a firm’s performance, provided the firm adopts a specific knowledge strategy and coherently aligns it with strategic HRM practices to achieve a sustained competitive advantage.

Fuzzy AHP Analysis of Firm-Level Knowledge Accumulation

Knowledge is considered to be a useful tool for a firm's competitiveness and sustainability. There is considerable evidence confirming that firm-level knowledge (FLK) accumulation provides a competitive advantage for firms, through innovation. Therefore, most knowledge-intensive firms accumulate FLK via exploitative practices to prevent deterioration of their innovation performance. This study adopts methods including expert interviews, an analytic hierarchy process (AHP) and fuzzy set theory to analyse the FLK accumulation in firms. This study proposes that three influential factors for FLK accumulation are knowledge integration (KI), knowledge absorption (KA) and knowledge sharing (KS). This study reveals that KI is the most influential factor of a firm's FLK accumulation, and the sub-factor of “Integration Ability” plays the most critical role of KI in FLK accumulation.

An Examination of the Firm-level Performance Impact of Cluster Hiring in Knowledge-intensive Firms

This research investigates the firm-level performance impact of cluster hiring approaches to the acquisition of strategic human capital in knowledge-intensive firms. We theorize that factors such a...

How much value is in business model reconfiguration?

A large gap has opened up between expectations about the value of business model reconfiguration (BMR) and the evidence to support these views. To help close this gap, this paper examines the relationship between BMR and the performance of incumbent firms. We investigate this relation using regression analysis and unique survey data from a sample of 198 publicly-traded UK and US knowledge-intensive business service firms. We find that BMR, on average, has no effect on firm performance. However, we estimate an inverted U-shaped relation between the scope of BMR and performance for firms which are also engaged in technological innovation. We also show that, unlike firms in general, high performing firms tend to experience increasing returns to BMR. These findings contribute to the innovation and the emerging business model literatures by highlighting both the costs and the benefits associated with BMR, by developing a new measurement scale for BMR, and by elucidating the contingent nature of the BMR-perform...

External Funding and Emergent Technology Inputs

Knowledge creation is critical to a firm’s competitive advantage, and often requires external funding. Yet, we know little about how different types of investors respond to cash needs of established knowledge intensive firms nor about how external analysts influence those decisions. We address these gaps by examining how a firm’s patenting activity affects its abilities to raise cash. We distinguish motivations of two investor groups: open-market and alliance partners. We focus on how patents based on emergent technologies and number of analysts following the firm, when viewed simultaneously, impact two types of investors and their willingness to fund knowledge development. We develop theory and test our hypotheses using data from publicly traded biopharmaceutical firms by drawing upon knowledge based view, alliance and investment theories.

Big data investments in knowledge and non-knowledge intensive firms: what the market tells us

PurposeThis paper aims to investigate the value of big data investments by examining the market reaction to company announcements of big data investments and tests the effect for firms that are either knowledge intensive or not.Design/methodology/approachThis study is based on an event study using data from two stock markets in China.FindingsThe stock market sees an overall index increase in stock prices when announcements of big data investments are revealed by grouping all the listed firms included in the sample. Increased stock prices are also the case for non-knowledge intensive firms. However, the stock market does not seem to react to big data investment announcements by testing the knowledge intensive firms along.Research limitations/implicationsThis study contributes to the literature on assessing the economic value of big data investments from the perspective of big data information value chain by taking an unexpected change in stock price as the measure of the financial performance of the investment and by comparing market reactions between knowledge intensive firms and non-knowledge intensive firms. Findings of this study can be used to refine practitioners’ understanding of the economic value of big data investments to different firms and provide guidance to their future investments in knowledge management to maximize the benefits along the big data information value chain. However, findings of study should be interpreted carefully when applying them to companies that are not publicly traded on the stock market or listed on other financial markets.Originality/valueBased on the concept of big data information value chain, this study advances research on the economic value of big data investments. Taking the perspective of stock market investors, this study investigates how the stock market reacts to big data investments by comparing the reactions to knowledge-intensive firms and non-knowledge-intensive firms. The results may be particularly interesting to those publicly traded companies that have not previously invested in knowledge management systems. The findings imply that stock investors tend to believe that big data investment could possibly increase the future returns for non-knowledge-intensive firms.

Peculiarities of public sector clients in service innovations

ABSTRACTThis paper analyses knowledge-intensive business service firms and their innovation activities in the context of federal government procurement with empirical evidence from Swiss information technology firms. The paper contributes to the growing literature on knowledge-intensive business services by expanding the concept to also capture public sector clients. It focuses in particular on the ways in which having a public sector client influences a knowledge-intensive business service firm’s ability to innovate, opportunities for interactive learning with their clients, and ways in which having a public sector client allows a firm to diversify. The paper shows that having a federal agency as a client is quite different from a private sector client particularly with regard to multi-party systems on the client side, the importance of informal interactions, and the role of public reputation.

Issues related to knowledge in knowledge intensive organisations - a literature review

The number of publications in the field of knowledge management is growing exponentially. There is a good amount of the literature published with respect to different aspects of knowledge intensive firms (KIFs). A good amount of literature is also available on different issues related to knowledge in different types of organisations. However, the literature addressing combined area of 'Knowledge issues' in KIFs is limited. The distribution of articles in these combined areas, based on year of publication, ranking of journals, comparative nature and countries in which studies were conducted, various aspects of knowledge-related effects and parameters causing such effects, indicates the interest among researchers, practitioners and policy-makers. But, it also highlights need of more studies in the years to come that widen the coverage of cause and effects related to different aspects of knowledge in KIFs. Also more studies from different countries, those related to clusters of KIFs and more comparative studies with that of Non-KIFs, have also become necessary. The paper aims to review different issues related to knowledge studied by researchers in the past, in a very specific context of knowledge intensive organisation and map those issues in structured categories, such that it will help in future research by identifying research gaps, relating to appropriate theories, conceptualising and empirically testing the new relations.

Issues related to knowledge in knowledge intensive organisations - a literature review

The number of publications in the field of knowledge management is growing exponentially. There is a good amount of the literature published with respect to different aspects of knowledge intensive firms (KIFs). A good amount of literature is also available on different issues related to knowledge in different types of organisations. However, the literature addressing combined area of 'Knowledge issues' in KIFs is limited. The distribution of articles in these combined areas, based on year of publication, ranking of journals, comparative nature and countries in which studies were conducted, various aspects of knowledge-related effects and parameters causing such effects, indicates the interest among researchers, practitioners and policy-makers. But, it also highlights need of more studies in the years to come that widen the coverage of cause and effects related to different aspects of knowledge in KIFs. Also more studies from different countries, those related to clusters of KIFs and more comparative studies with that of Non-KIFs, have also become necessary. The paper aims to review different issues related to knowledge studied by researchers in the past, in a very specific context of knowledge intensive organisation and map those issues in structured categories, such that it will help in future research by identifying research gaps, relating to appropriate theories, conceptualising and empirically testing the new relations.

How Can Knowledge Leakage be Stopped

This article discusses how leakage of knowledge can occur in value creation networks embedded in knowledge-intensive firms, and how a collaborative approach can be utilized to minimize risk and increase sustainability. For knowledge to be preserved from unintentional outflow, its confidential nature and description must be understood at all levels. Loss of knowledge can occur at any point; whether it is through the process of consultation or when employees do their work. Forfeiture of information can be unintended or a planned effort. To prevent such unintended leakage, it is important to develop a shared mindset among employees to minimize the risk. The socio-technical system design is a philosophical framework that enables companies to simultaneously consider both ethical and technical systems in order to best match the technology and the people involved. History has shown through a number of situations that firms that failed to comprehend new opportunities were often limited by stakeholders' thoughts and actions.

Assessing the Impact and Antecedents of University Scientific Research on Firms Innovation Commercialisation

University-firm links have stimulated a lot of attention. In fact, with the increasing knowledge and technologies created within university laboratories, firms have identified business opportunities by accessing the knowledge developed by external actors and commercialising universities' inventions. In this case, they adopt a knowledge acquisition strategy to foster innovation, reducing risk and exploiting new technological opportunities. This underlines a shift in the role of universities from education providers to scientific knowledge and technologies producers in the current knowledge-driven economy. In this context, the main goal of this paper is to assess the impact of knowledge acquisition on firms' innovation commercialisation, with a specific focus on knowledge developed by university scientific research. By applying hierarchical regressions on a sample of 185 Italian knowledge-intensive firms (KIFs), the findings indicate that firms benefit from research partnerships with and services from universities, when they also seek knowledge from other counterparts and when they possess higher levels of internal absorptive capacity.

Innovative Behaviour and Performance of Technology-based Knowledge-Intensive Business Service: An empirical study

The aim of this paper is to learn more about how technology-based knowledge-intensive business service firms (t-KIBS) innovate. To do so, we examine the range of innovation practices employed by a sample of 50 t-KIBS in Catalonia, Spain and the impact these practices have on innovation and business results. We distinguish between practices widely used among manufacturing and services firms and practices that are more typically used by services. Our results reveal that, on the one hand, practices common to manufacturing and services are significant in explaining improvements in both innovation and financial performance, while on the other hand, innovation patterns and practices that are more often used in services are not significant in explaining either innovative outputs or increases in operational profits and returns. These results are important for refining the design of innovation policies at a regional level in Catalonia, as well as abroad. Further research is needed to establish whether the innovative behaviour of t-KIBS is more akin to that of manufacturing firms than to that of service firms.

The importance of small knowledge intensive firms in European countries

Smart, sustainable and inclusive growth is the basis for European 2020 strategy, in which small and medium enterprises (SMEs) are considered the backbone of European countries economies. The present study aims to investigate the relationship between the main variables that characterises small knowledge intensive firms (SKIFs) and the importance of their business expenditure on research and development (BERD). To achieve this, European member states were analysed during the period between 2008 and 2012 using a clusters analysis. Through this study it is possible to conclude that countries that have high growth values on SKIFs also achieve growth in GDP and BERD.

INVESTIGATION OF THE ROLE OF VENTURE COMPANIES IN THE EARLY STAGES OF THE PRODUCT LIFE CYCLE

Urgency of the research. To ensure the commercial success of innovations requires detailed study of the early stages of its life cycle. In Europe the greatest success in this field reached venture capital firms. Target setting. An important task of the domestic economy is to increase the role of venture capital in innovation activity of enterprises. Actual scientific researches and issues analysis. The theoretical basis of life cycle of innovative products, especially technology, was laid by such scientists as S. M. Illyashenko, [3, 4], O. M. Gavris [5], I. N. Pogorelov [6], N. I. Pogorelov [7-10], D. Kozicki [11] V. L. Тovazhnyanskiy [12], R. E. Fiscal [13] and others. Uninvestigated parts of general matters defining. The current situation of venture business in Ukraine does not establish the priorities of small businesses, which significantly reduces the commercial potential of their research. The research objective. The aim of the study is to increase the role of small enterprises in securing commercial opportunities of innovation in the early stages of their life cycle. The statement of basic materials. Conducted theoretical and practical research on the early stages of the life cycle of industrial innovation. Identify the existence of significant difficulties faced by the enterprises in the sphere of creation, development and bringing to market industrial innovation. It is proved that during the test, and experienced the development of innovations, through technical difficulties or the lack of needed funding, to stop the development of six features from selected 20 percent. To improve the efficiency of the innovative activities proposed in the greater use of the small innovative enterprises. It is proved that the largest contribution to the innovation process make small innovative firms and very large corporations having as their branches small and medium-sized knowledge-intensive firms. Conclusions. The recommendations allow for the monitoring of intellectual-innovation activities of enterprises, to warn undesirable tendencies both at the enterprise and market his products.

기술이 서비스 혁신과 기업 성과에 미치는 영향에 대한 연구 : 국내 지식 서비스 기업을 중심으로

서비스와 기술 간 융합 현상이 가속화되고 있는 비즈니스 환경 속에서 서비스 분야에서 기술의 역할은 점차 확대되고 있다. 지난 30년 동안 많은 연구에서 서비스 혁신에서 기술의 중요성을 강조해 왔음에도 불구하고, 서비스 혁신에서 기술의 역할이 무엇이고 어떻게 기업 성과에 영향을 미치는지에 대한 논의는 아직까지 진행 중에 있다. 기존 문헌에서는 서비스 혁신 성공과 기업성과에 중요한 영향을 미치는 기술에 대해 다양한 역할들을 제시하고 있으나, 아직까지 서비스 혁신에서 기술의 명확한 역할에 대해 이론적으로 실증적으로 명확하게 규명한 연구는 거의 이루어지지 않았다. 따라서 기업이 기술을 활용을 통해 성공적으로 서비스 혁신을 수행하기 위해서는, 기술이 서비스 혁신과 기업성과에 미치는 영향에 대한 연구가 선행될 필요가 있다. 이러한 문제점을 해결하기 위해 본 연구에서는 서비스 혁신에서 기술의 역할이 무엇인지 규명하고자 하며, 기술, 서비스 혁신, 그리고 기업 성과 간의 인과 관계를 이론적이고 실증적으로 규명하고자 한다. 따라서 본 연구의 목적은 다음과 같다: 1) 서비스 혁신에서 기술의 역할을 파악하고자 한다: 2) 기술, 서비스 혁신, 그리고 기업성과 간의 관계를 분석하고자 한다. 이를 위해 본 연구는 통합적인 관점을 기반으로 기존 연구를 통해 4개의 서비스 혁신 지향성(예, 서비스 창출, 서비스 전달, 고객 상호작용, 그리고 기술)을 도출하고, 국내의 193개의 지식 서비스 기업을 대상으로 수집된 데이터를 기반으로 기술, 서비스 혁신 그리고 기업 성과 간의 인과 관계를 분석하였다. 본 연구의 결과, 기술 지향성은 서비스 창출 지향성과 서비스 전달 지향성에는 선행자로서 긍정적인 영향을 미치는 것으로 나타난 반면, 고객 상호작용 지향성에는 촉진자로서 상호작용하여 기업성과에 긍정적인 영향을 미치는 것으로 나타났다. 기술 지향성에 선행적으로 그리고 조절적으로 영향을 받은 모든 서비스 혁신 활동은 기업 성과에 긍정적이고 유의한 영향을 미치는 것으로 나타났다.

Adoption of Open Innovation in the Internationalization of Knowledge Intensive Firms

Involvement in different open innovation activities by using inflows and outflows of knowledge becomes the important premise for a successful business. However, on a global scale, open innovation literature does not pay enough attention to the international dimension, which is essential when seeking to increase the performance of overseas firm’s activities. Therefore, the paper aims to highlight coherences of open innovation and internationalization by analyzing knowledge intensive SMEs in Lithuania. Referring to case studies approach it is disclosed how much firms are open in performing innovative activities by collaborating, how they share knowledge, what main profiles of national and foreign partners are and how open innovation is applied in internationalizing firm’s activity. The research results indicated that firms while innovating were mostly focused on the R&D ecosystem oriented and innovation and entrepreneurship ecosystem oriented networks at the national level . However, when internationalizing firm’s activities, the preference to the international value chain oriented innovation network was disclosed. It contributes to the theory of open innovation from the knowledge intensive firms’ internationalization point of view, especially in the understanding of open innovation’s role in pursuing fast development in foreign markets while providing further knowledge on internationalization of firms originating from Baltic region area. DOI: http://dx.doi.org/10.5755/j01.ee.27.5.15371

Urban size and KIBS vertical disintegration: the case of Milan

ABSTRACTThe literature shows that market size favours firms’ vertical disintegration because it reduces transaction and knowledge coordination costs. The existing evidence is based primarily on cross-sectional data and on the manufacturing sector, with little or no attention is given to longitudinal data and services. This paper estimates the effect of urban size on the purchase of service inputs by knowledge-intensive business service firms located in the metropolitan region of Milan. Relying on a rich panel dataset, and adopting different econometric techniques to overcome endogeneity, we find a positive and statistically significant effect of increased urban population on the degree of KIBS vertical disintegration only when urban size is measured at the province level. We also find that this effect holds particularly in the case of traditional professional- rather than technology-related activities.

Employees’ Perception Regarding the Role of Specific HRM Practices in Knowledge Intensive Firms

The purpose of this paper is to investigate the employees’ perceptions about association between specific HRM practices and employees’ knowledge sharing. Based on previous literature, a model is proposed for the study and hypotheses are formulated. The cross-sectional dataset comes from a sample of 390 employees of 19 Pakistani KIFs. Confirmatory factor analyses were employed to evaluate the reliability and validity of the measurement model and the research model was tested using structural equation modeling. The results suggest that specific HRM practices, for instance, recruitment and selection and reward systems show a positive relationship with knowledge sharing, as perceived by the employees of these organisations. We also found a positive relationship among individual and organisational capability in workplaces. A key finding of this study is that recruitment and selection have a much greater impact on knowledge sharing than reward systems. In this study, knowledge-sharing behaviour is examined using specific HRM practices. Findings should be confirmed using a larger sample, as well as through longitudinal study. This study will be beneficial for researchers, practitioners, scholars, organisational leaders and employees. It will also be helpful for those interested in organisational structure and relationships across organisations in knowledge context. This study makes a valuable contribution, given that there is a lack of empirical studies of this nature focusing on the South East Asian region. Our findings are more interesting given that the current study is based on employees’ perception and employees’ views are similar to than that of management’s views in KIFs. Int. J. Soc. Sc. Manage. Vol. 3, Issue-4: 246-255

Boards of directors and organizational ambidexterity in knowledge-intensive firms

We examine the relation between boards of directors’ knowledge heterogeneity and organizational ambidexterity (OA) (i.e. simultaneous exploration and exploitation) in knowledge-intensive firms (KIFs). Although the literature on OA has started to emphasize its antecedents, the role of the board remains unaddressed. This is an important omission, as boards have become increasingly involved in strategy-making. In turn, studies on boards have looked at their influence on either exploration- or exploitation-type strategies. Yet, KIFs particularly need to balance both exploration and exploitation to renew their knowledge base. We draw on knowledge-based perspectives to disentangle the benefits and costs of board knowledge heterogeneity for driving OA in KIFs. Our empirical analysis based on a longitudinal panel of UK pharmaceutical firms provides support for our hypothesized U-shaped relation. Our findings suggest that the benefits of knowledge heterogeneity only outweigh the costs beyond a particular threshold. Overall, our theoretical approach and allied findings advance the literature by introducing boundary conditions to the resource provision role of boards in KIFs. We discuss contributions for organizational learning, strategic leadership, and human resource management. We conclude with implications for theory and practice, as well as key opportunities for future research.