Knowledge-intensive Business Services Firms Research Articles

A nonparametric analysis of competitiveness efficiency: The relevance of firm size and the configuration of competitive pillars

This study employs a data envelopment analysis (DEA) model with a single constant input to analyze the competitiveness performance of a unique sample of 103 knowledge-intensive business service (KIBS) firms from Hungary, Spain, Colombia, and Costa Rica for the year 2017. Also, we assess how the configuration of competitive pillars—strengths and weaknesses—affects efficiency and how firm size moderates this relationship. The mean efficiency scores by which the competitiveness output can be optimized is 47.43%. The results suggest that the configuration of competitive pillars has important implications for efficiency analyses. For small businesses, competitive-enhancing actions should focus on mitigating competitive weaknesses that are detrimental to efficiency. Also, a configuration of competitive pillars in which one or various competitive strengths prevail is more beneficial for small businesses. Managerial tools such as the proposed competitiveness measure may offer useful information on what strategic actions can contribute to optimize business competitiveness. JEL CLASSIFICATION C14; L19; L25

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.

The agglomeration of knowledge-intensive business services firms

We analyse the geographic localization and the productivity of knowledge-intensive business services (KIBS) in Italy, using both census data and balance sheet data at the firm level. We find that KIBS are generally agglomerated in urban areas where they attain significantly higher labour productivity levels. Urban productivity advantages are found to be strongly associated with the local availability of human capital and to standard proxies of Marshall–Arrow–Romer and Jacobs agglomeration economies. Forward demand linkages and some factors impacting on the thickness of the local labour market also appear to be relevant. On the whole, the set of explanatory factors considered could explain the entire urban productivity premium estimated for Italian KIBS firms.

Unlocking solution provision competence in knowledge-intensive business service firms

Business services markets are very competitive and a key challenge for knowledge-intensive business service (KIBS) firms is delivering effective solutions for business customers. As solution providers, KIBS firms need to invest competencies that supports their capacity to solve customers' problems. We examine how KIBS firms address this challenge by investigating how solution-provision competence (SPC), as a firm-level competence, contributes to the delivery of effective solutions, and how and when KIBS firms leverage SPC to transform knowledge gained from various search paths into effective solutions for customers. The results show that distal search enriches knowledge diversity, which helps foster solution-provision competence but only up to a point, after which the relationship turns negative, with distal search showing a diminishing effect on solution-provision competence. In addressing the diminishing returns of distal search to solution-provision competence, we show that higher levels of proximal search and strategic flexibility reverse the diminishing effect of high levels of distal search on solution-provision competence; however, employee collaboration did not help counter the diminishing returns (e.g., marginal benefits). Finally, we demonstrate that solution-provision competence helps KIBS firms offer effective solutions tailored to business customers' specific needs.

Knowledge management approaches of small and medium-sized firms: a cluster analysis

PurposeThis paper aims to categorise the approaches to knowledge management (KM) by companies. In the literature, there is no consensus on a universal or “best” approach to KM. Especially, this paper singles out and discusses the variegated features that characterise the implementation of KM by small- and medium-sized enterprises (SMEs) having different characteristics.Design/methodology/approachA cluster analysis was used to detect the possible distinct traits of companies that have different approaches to KM. The unit of analysis is represented by small- and medium-sized knowledge intensive business services (KIBS) firms. Data were collected by means of an extensive survey of 223 companies in different European countries and sectors.FindingsThree clusters were identified: Companies showing a relative “unconscious” attention to KM and implementing KM practices without particular awareness; Companies adopting a more conscious approach and using a significant number of KM practices; and companies with a marginal propensity towards KM.Research limitations/implicationsThis study considers only KIBS, and future research should include other economic sectors. In addition, a convenience sample was used.Practical implicationsThis paper improves awareness of managers of small companies concerning different KM approaches that can be adopted. It highlights that a conscious adoption of a KM strategy involves the introduction of a set of consistent practices.Originality/valueThe topic of KM approaches by small companies is still underdeveloped in the literature. Also, the paper proposes a multi-contextual investigation that makes it possible to highlight the transversality of KM approaches across different countries or sectors.

Innovative behaviour and the performance of technology-based knowledge-intensive business services: 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 impact of KIBS’ location on their innovation behaviour

ABSTRACT Knowledge-intensive business services (KIBS) are widely perceived as being important drivers of technological progress and innovation. They generally depend on knowledge exchanges and, therefore, geographical proximity to markets, customers and suppliers would be expected to be a critical factor in their performance. This paper investigates how the innovation performance of German KIBS firms is related to their distance and size from the nearest city. The analysis largely conforms to a textbook type of spatial urban hierarchy and, indeed, finds that there are very strong distance-decay and city size effects, and these also vary according to the innovation type.

Serviços Intensivos em Conhecimento e Serviços Tradicionais: Um Panorama Intersetorial de Micro e Pequenas Empresas

Objetivo: Verificar se a longevidade das Micro e Pequenas Empresas (MPEs) de Serviços Intensivos em Conhecimento (SICs) é diferente das MPEs de Setores Tradicionais de Serviço (STSs).Metodologia/abordagem: Foram realizadas análises quantitativas de dados secundários, coletados na Junta Comercial do Estado de Minas Gerais (JUCEMG) e no Instituto Brasileiro de Geografia e Estatística (IBGE).Principais resultados: A primeira hipótese, que afirma que as empresas de SICs têm porcentagem maior de pessoas empregadas com nível de educação superior em relação a empresas de STSs, não foi rejeitada pela pesquisa. A segunda hipótese, que afirma que as empresas de SICs têm uma longevidade maior do que empresas de STSs, foi rejeitada pela pesquisa.Contribuições teóricas/metodológicas: Estudos anteriores alegaram que os SICs são fontes importantes de inovação, porém não foram encontrados estudos que analisassem e comparassem a longevidade das MPEs de SICs e STSs. Os estudos anteriores também não apresentavam uma classificação uniforme sobre os SICs. No presente estudo, foi realizada a análise da longevidade dos SICs e elaborada uma consolidação das definições dos SICs associando-as com a Classificação Nacional de Atividades Econômicas do IBGE. Tal associação pode ser aplicada em outras pesquisas.Relevância/originalidade: As MPEs são reconhecidas por possuírem grande importância social e econômica, principalmente pela geração de empregos. E os SICs são reconhecidos pela geração de inovação para outras empresas, elemento esse que pode ser decisivo para a competitividade. Portanto, o estudo das MPEs de setores SICs tem relevante importância econômica.

AGGLOMERATION ECONOMIES AND PERFORMANCE IN KNOWLEDGE-INTENSIVE BUSINESS SERVICES

Most studies on the relationship between agglomeration economies and economic performance have focussed on regions in general or manufacturing. Very few papers have considered the impacts of agglomeration economies on the economic performance of knowledge-intensive business services (KIBS) firms. We propose a theoretical framework based on the characteristics of KIBS to study the precise channels through which KIBS firms benefit from specialization externalities and diversity externalities. The empirical evidence based on the software and IT services industry in China, a very dynamic branch of KIBS, shows that firms benefit from service diversity externalities but not specialization externalities, consistent with the idea of “nursery cities”.

Which types of knowledge-intensive business services firms collaborate with universities for innovation?

Drawing on data from an original survey of UK and US publicly traded knowledge-intensive business services (KIBS) firms, we investigate what types of KIBS firms collaborate with universities and consider the collaboration important for their innovation. First, we find that science-based KIBS firms (those engaged in a science, technology, and innovation [STI] mode of organizational learning), like science-based manufacturing firms, are active collaborators with universities for innovation. This relationship is further enhanced if these firms also provide highly customized services. Second, in contrast to the existing literature suggesting that firms engaged in a doing, using, and interacting (DUI) mode of organizational learning do not regard collaboration with universities as important for their innovation, we find that KIBS firms engaged in a DUI mode of organizational learning and offering highly customized services are active collaborators with universities for innovation, despite the fact that they may not possess highly formalized scientific knowledge. These findings suggest that KIBS firms co-create knowledge with universities differently than manufacturing firms. Moreover, the findings highlight the wide variety of roles that KIBS firms play in innovation networks with universities.

Local Product-Service Innovation Systems: T-KIBS Contribute Most to Local Manufacturing Performance

Knowledge-intensive business service firms (KIBS) have been found to be instrumental for the renaissance of local manufacturing sectors. The value-adding role of KIBS to local manufacturing performance is likely to vary according to the functions they fill within the local hybrid value chain. The research objective of the study presented in this paper is to identify whether the positive effect of KIBS on the contribution of manufacturing businesses to the local economy is stronger in regions with a greater technology-based KIBS sector (T-KIBS), as compared to professional-based KIBS (P-KIBS). To reach this objective, we employ regression models and cluster analysis on a database built from two separate sources (Regional Entrepreneurship and Development Index and Eurostat) that includes information for the years 2012-2014 for 121 European Union (EU) regions from 24 countries. The main findings indicate that the territorial presence of an active hybrid value chain composed of a mixture of manufacturing and T-KIBS businesses is associated with greater average manufacturing productivity, in terms of gross-value added (GVA) per worker. Therefore, the local presence of T-KIBS firms pays-off for manufacturers and the territorial product-service innovation system.

Knowledge intensive business services: innovation and occupations

PurposeThe literature on knowledge-intensive business services (KIBS) shows them to be major innovators; this is confirmed with recent data, which the authors use to examine the various types of innovation that KIBS undertake. The implications for employment and work in highly innovative industries are important topics for analysis, not least because we are in a period where dramatic claims are being made as to the implications of new technologies for professional occupations. Thus, this paper aims to address major debates and conclusions concerning innovation patterns in KIBS and the evolving structures of professional and other work in these industries.Design/methodology/approachThis essay combines literature review with presentation and discussion of statistics that throw light on the patterns of innovation that characterise KIBS. The authors also consider data that concern trends in the organisation of work in these industries; while the focus is mainly on KIBS firms, they also pay some attention to KIBS-like work in other sectors. Even though KIBS are distinctive industries in modern economies, these analyses can be related to more general studies of, and forecasts about, changes in work organisation.FindingsThe authors show that innovation patterns and employment structures vary substantially across different types of KIBS, with the distinction between technological, professional and creative KIBS proving to be useful for capturing these differences. The authors are also able to demonstrate important long- and medium-term trends in the structure and activities of the KIBS industries. In particular, data clearly demonstrate the increasing share of professional as against associate and clerical workers in most KIBS. Evidence also suggests that polarisation trends across the economy are mirrored, and in some cases amplified, in KIBS. The future prospects for employment in KIBS, and for professional work in particular, are seen to involve multiple factors, which together may bring about substantial change.Research limitations/implicationsThe study involves literature review and industry-level statistical analysis. Future work would benefit from firm-level analysis and validation and explication of results via consultation with practitioners and users of KIBS. Some puzzling variations across countries and sectors will need to be explored with national and sectoral experts.Practical implicationsResearch into KIBS activities, and their future, should make more use of the extensive statistics on employment and other structural features of the industries that have become available in recent years. KIBS firms and practitioners will need to take account of the forces for change that are liable to restructure their activities.Originality/valueThe literature on KIBS has been concentrated on a rather narrow range of issues, while analysis of the current contributions and future development of the industries requires attention to a wider range of topics. This paper suggests how these topics may be investigated and their implications explored and presents results of enquiries along these lines.

Determinants of innovation performance

Purpose The purpose of this paper is to analyse the relationship between organisational learning capabilities (OLCs) and innovation performance (IP) in organisational contexts where knowledge creation and exploitation are the business’ main source of competitive advantage. Design/methodology/approach The study hypotheses are tested on a unique sample of 74 high-performance businesses operating in knowledge-intensive business services (KIBS) industries and non-knowledge intensive sectors in 2016. The study employs a sequential deductive triangulation analysis (QUAN → qual) based on linear regression models and qualitative interviews. Findings The results indicate that OLCs positively impact IP. Additionally, the findings reveal that this relationship is stronger in organisations where knowledge creation and exploitation constitute the main source of competitive advantage, namely, KIBS firms. Research limitations/implications This paper offers insights into how the innovation outcomes of OLCs are heterogeneous across industries. This study contributes to a better understanding of the conditions under which the effects of developing learning-enhancing strategies occur in businesses operating in different industries. Practical implications Both knowledge generation and exploitation processes are critical for business success, and OLCs play a decisive role in this process. In this sense, the results suggest that managers need to turn their attention to the characteristics of business operations when considering the development of strategies aimed at enhancing OLCs. Originality/value The paper further explores the influence of OLCs on IP by analysing how organisational learning strategies interact with relevant organisational characteristics – that are linked here to the exploitation of knowledge-based resources – to yield superior IP.

A non-parametric analysis of competitiveness efficiency: The relevance of firm size and the configuration of competitive pillars

This study employs a DEA model with a single constant input to analyze the competitiveness performance of a unique sample of 103 knowledge-intensive business service (KIBS) firms from Hungary, Spain, Colombia and Costa Rica for the year 2017. Also, we assess how the configuration of competitive pillars—strengths and weaknesses—impacts efficiency and how firm size moderates this relationship. The mean efficiency scores by which the competitiveness output can be optimized is 47.43%. The results suggest that the configuration of competitive pillars has important implications for efficiency analyses. For small businesses, competitive-enhancing actions should focus on mitigating competitive weaknesses that are detrimental to efficiency. Also, a configuration of competitive pillars in which one or various competitive strengths prevail is more beneficial for small businesses. Managerial tools such as the proposed competitiveness measure may offer useful information on what strategic actions can contribute to optimize business competitiveness.

Agglomeration and innovation of knowledge intensive business services

ABSTRACT For some time now, the research focusing on Knowledge Intensive Business Services (KIBS) has been very active. Observing that knowledge as a production factor is only becoming more and more pronounced, this focus is well-grounded. It is therefore important to examine how these knowledge-hubs gain and propagate their knowledge. We hypothesize that KIBS (as many other sectors) benefit from intra-industry knowledge spillovers facilitated by geographical concentration. Our focus is the innovative capacity of KIBS, which we measure through trademarks registered by KIBS firms. While there may be several mechanisms facilitating knowledge spillovers, we can identify local intra-sectoral labor mobility as one. Accessibility measures are used to assess the geographical attenuation of the spillover effects. Results show that the distance decay of spillovers is fast. Only local concentrations of KIBS seem to be of importance. Over longer distances, we instead observe negative consequences for trademarking, indicating possible spatial competition effects.

Knowledge management competences, exporting and productivity: uncovering African paradoxes

PurposeThis study aims to investigate the importance of relational and conditional knowledge by assessing how service and signaling competences affect manufacturing firms’ productivity. These relationships are explored in the context of Africa, where, paradoxically, firms selling abroad must satisfy different market demands than firms that serve only domestic markets.Design/methodology/approachThe authors draw on the World Bank Enterprise Survey to perform a cross-sectional analysis of 4,683 manufacturing firms. These surveys cover the period 2009-2017 and 35 different African countries. The authors define service competence development as co-location with knowledge-intensive business service (KIBS) firms, measured through KIBS density at city level. Signaling is measured through outward-looking competences.FindingsThis paper shows that African exporters differ significantly from their non-exporting counterparts in terms of productivity and competences. External service competence generates productivity gains for exporters but has the opposite effect for non-exporters. Results consistent with previous research also show that signaling competences generate productivity gains, but the effect for firms serving domestic markets is stronger than the effect for exporting firms. The authors use paradoxes of learning to interpret these results.Research limitations/implicationsThis study detects nuances of the African context that increase the understanding of knowledge management in emerging markets. The findings would benefit from confirmation in a longitudinal and causal setting.Practical implicationsAfrican exporting firms should establish mechanisms to develop joint knowledge with external partners (know-with) to enhance their competitiveness, whereas African non-exporters should prioritize building knowledge credibility.Originality/valueThe study develops a novel empirical approach to analyzing firm competences in Africa. It also shows that contextualization of existing knowledge management theories matters, opening a research avenue to test further existing theories in emerging economies.

Innovation in R&D service firms: evidence from the UK

ABSTRACTResearch and Development (R&D) service firms make significant contributions to innovation in other businesses. The extant literature considers these firms a homogenous sub-group of Knowledge Intensive Business Service firms (KIBS). The objective of this study is to investigate how R&D service firms innovate and the variety of innovation practices within these firms. Employing data from semi-structured interviews with senior managers from 32 UK-based R&D service firms, we suggest that there are two different modes of innovation: in the first mode, R&D service firms innovate similarly to KIBS whose innovation is ad-hoc in nature and driven by customers’ requests; another group of R&D service firms innovate like New Technology-based Firms (NTBFs) relying more on structured in-house R&D activities.

The emergence of collaborative partnerships between knowledge-intensive business service (KIBS) and product companies: the case of Bremen, Germany

ABSTRACTRegional science research is silent on how collaborative partnerships between knowledge-intensive business services (KIBS) and product companies emerge. The paper addresses this theoretical gap by examining the role played by KIBS firms and by their interactions with product companies. It proposes a typology of territorial servitization – namely knowledge gap, regulation gap and capacity gap – wherein KIBS firms respectively play the pivotal roles of knowledge brokers, intermediators and integrators in driving collaborative partnerships. By conducting qualitative case studies, this paper explores the mechanisms by which product companies located in a high-tech multi-industry cluster in Bremen, Germany, collaborate with KIBS firms in fostering regional competitiveness.

Impact of broadband uses on labour demand derived from the innovative behaviour of firms in creative industries

This research explores the effect of the implementation and intensive use of broadband on the labour demand induced by the innovative behaviour of Peruvian firms of creative industries (CI) in comparison to Knowledge Intensive Business Services (KIBS) and Services companies. The 2015 Business National Survey database was used. It was found that both productive and intensive uses of broadband encourage labour demand as a reflection of successful innovations' introductions, in the three analysed industries (except for CI's second use). In contrast, the market-oriented uses of broadband reduce the likelihood of hiring staff as corollary of innovative behaviour among the KIBS and CI firms. In addition, among CIs firms, the study found that only the productive uses of broadband -in line with the intrinsic characteristics of its own knowledge base- could promote processes that lead to successful innovation results and positive effects on labour demand to a greater extent than services and KIBS firms. The results highlight the feasibility of stimulating innovation processes and employment through information and communications technology policies among strategic service sub-sectors as creative industries in emerging digital ecosystems.

Design Thinking: Exploring the Effect of Appropriability and Capabilities on Innovation Performance in Knowledge-Intensive Business Services

Design thinking (DT) has recently gained in popularity with knowledge intensive business services (KIBS) seeking to increase innovation effectiveness. DT provides organizations with an iterative framework that supports problem-solving, using a human-centered approach to support innovation (Brown, 2009; Chasanidou, Gasparini, & Lee, 2015). This study aimed to investigate the effects of appropriability and capabilities on DT implementation and innovation performance in a KIBS. The study’s methodology is a systematic review that provides an analysis of the relevant literature evidence-based research approach. Using thematic synthesis, this study analyzed and aggregated relevant literature on organizational appropriability, innovation capabilities, and DT according to results from 49 studies. This article found the level of appropriability strategy both inhibits and facilitates the development of a collaborative partnership to support innovation. Collaboration with clients and strategic partners goes hand-in-hand with the importance of a formal appropriability mechanism (Miozzo, Desyllas, Lee, & Miles, 2016). Findings indicate that KIBS firms which measure and dynamically utilize different appropriability strategies efficiently attain improved performance than organizations that do not. Therefore, KIBS seeking to implement DT to support innovation performance need both leadership and resource support to adopt a dynamic appropriability strategy, build capabilities, encourage resources, and legitimize the viability of the DT process in the organization.