Knowledge Intensive Business Services Sector Research Articles

University‐industry links and the determinants of their spatial scope: A study of the knowledge intensive business services sector

AbstractThis paper examines the determinants of the spatial scope of collaborative linkages between knowledge intensive business services (KIBS) firms and universities in the UK. Drawing on data on knowledge transfer partnerships (KTPs), it is found that the geographic scope of these linkages is determined by a complex mix of the particular characteristics of firms and universities, as the well the location of the firms. In particular, proximity increases with the participation of smaller firms, and firms located within areas with higher densities of KIBS employment. In contrast, the participation of larger firms or a university with greater levels of research activity increases the geographic scope of a linkage.

Migrating to the cloud

Purpose – Cloud computing is a relatively new phenomena. It has rarely been examined in the context of the small to medium-sized enterprises (SMEs). The purpose of this paper is to examine the drivers and barriers to cloud computing adoption by SMEs in Ireland. Design/methodology/approach – This study adopted an exploratory approach. A quantitative approach was adopted in the data collection phase. An online self-completion questionnaire was distributed by e-mail to 1,500 SMEs in Ireland. A response rate of 6 per cent was achieved generating 95 usable responses. Findings – Findings from this study indicate that Irish SMEs are adopting cloud technology. The key driver identified is the resultant cost benefits for the firm. However, concern over continuous availability of the service is identified by the SME as a key challenge and is hindering widespread adoption of cloud technology. Research limitations/implications – This study whilst exploratory in nature, has laid the foundation for further research in the area of cloud computing adoption. This research should enable further studies to replicate this process with the possibility of extending the study to include other countries, on a larger scale and with a particular focus on the knowledge intensive business services sector. This study would benefit from adding a qualitative perspective to the research topic to add depth and enhance the “richness” of the data collected during the process. Practical implications – This study concludes that policy makers and cloud providers need to provide assurances to SMEs over issues of continuous availability of the cloud service through increased and on-going investment in a high-speed, broadband infrastructure and through ensuring issues pertaining to standardization and compliance are resolved. Originality/value – This exploratory research has illuminated this area through examining the drivers and barriers to cloud adoption by SMEs. In the Irish context, the benefits of engaging in such activity can reap many benefits. Of particular importance to a peripheral economy such as Ireland is the value of adopting cloud computing which is central to offering competitive advantage and controlling costs.

A networking culture to benefit from open innovation - a comparison between technology and business services industries in The Netherlands

This paper aims to improve our understanding of why some companies are more successful in implementing open innovation strategies than others, by building a framework of capabilities required to benefit from open innovation. It argues that companies can benefit from open innovation when they have the capabilities to connect closed and open approaches to innovation. This requires building a culture conducive to developing networking capabilities. In the article, a comprehensive set of networking capabilities is developed intended as an analytical tool to evaluate to what extent companies are equipped to benefit from open innovation. As a first step to further validating the framework, empirical research has been carried out in The Netherlands to compare networking capabilities of companies in the technology industry and in the knowledge intensive business services sector. The results indicate that according to the framework, technology companies are in the lead in benefiting from open innovation, which may be explained by their previous experience in innovation networking. The results suggest that the networking capabilities framework is a promising tool for analysis that can help companies to become better equipped to jointly create value and capture value in innovation networks. The research has policy implications for regions as well, because it indicates that regional open innovation strategies need to address the development of networking capabilities of companies and other actors in the regional innovation system.

FROM CREATIVE INDIVIDUALS TO CREATIVE CAPITAL: VALUE CREATION AND APPROPRIATION STRATEGIES OF CREATIVE KNOWLEDGE-INTENSIVE BUSINESS SERVICES

In the increasingly knowledge-based economy, the role of the service sector, and in particular, of Knowledge Intensive Business Services (KIBS), is widely acknowledged. KIBS are considered 'bridges of innovation'. Furthermore, in addition to this pivotal role in supporting the competitiveness and development of other firms, KIBS sectors are, per se, increasingly relevant in terms of economic dimensions and employment. Creative KIBS span architecture, advertising, multimedia and internet applications, branding, design agencies, etc and leverage creative processes and creative individuals. The importance of these firms is directly related to the increasingly acknowledged role of creativity and innovation for competitiveness. In fact, while some KIBS have grown to significant sizes in the creative sector (e.g., IDEO and Continuum Innovation), normally, these firms fail to grow and consist of only the founding professionals and a limited number of close collaborators. As argued by Florida and Goodnight (2005), the company's most important asset is its creative capital and this is not just a collection of individuals' ideas, but a product of interaction. This paper relies on a sample of eight Italian creative KIBS to analyse the value creation and appropriation strategies adopted by companies that were able to transform their creative capabilities from an individual asset to a company one (creative capital). On the basis of a theoretical framework that is derived from the literature and based on three pillars (Unique Assets Development, Unique Assets, and Unique Assets Value Appropriation), we identify several peculiar assets and strategies that are adopted by creative KIBS. Furthermore, we highlight the importance of Unique Asset Embodiment strategies, i.e., the importance of strategies for formalizing and codifying the unique assets in specific technologies, archives, processes, and even products. We show that these strategies allow (i) to extract more value from the already adopted value appropriation strategies and (ii) to adopt specific strategies of value appropriation.

The competent demand pull hypothesis: which sectors do play a role?

The paper investigates intersectoral linkages between manufacturing and services under the competent demand pull hypothesis. This hypothesis postulates that the demand pulls the innovative capacities of the suppliers only when and if they are accompanied by qualified knowledge interactions with creative customers. We empirically investigate this hypothesis based on the sector-level data of nineteen (manufacturing and service) sectors in fifteen EU countries over the period 1995–2007. We adopt the input–output framework to assess the strength of the inter-sectoral intermediate goods transactions. Our main findings confirm that demand actually pulls technological change only when it comes from competent customers able to implement effective user-producer knowledge interactions. The results stress the relevance of the transactions-cum-knowledge interactions between the knowledge intensive business service sectors and the manufacturing industries.

The economics of the light economy

The paper provides an interpretative framework and structured empirical evidence of the processes leading to the emergence of a light and slow growth economy in advanced countries. The interpretative framework rests upon the grafting of a) the Schumpeterian hypothesis about the role of creative reaction as the main determinant of the rate of technological change b) in a dynamic version of the Hecksher–Ohlin analysis with c) the Kuznets approach on the strict complementarity of structural and technological changes, and d) the new approach about the direction of technological change biased towards the most intensive use of locally abundant production factors. The analysis of the stylized facts and the empirical evidence confirms that the twin globalization of product and capital markets brought about by the entry of new labor abundant countries in international markets had profound effects on advanced countries leading to the introduction of skill biased technological change with the consequent decline of the role of the manufacturing industry and the emergence of a strong knowledge intensive business service sector. The new biased direction of technological change accelerated the substitution of both capital and unskilled labor with skilled workers with the ultimate effect of reducing the stock of working capital and hence the rates of growth of advanced economies. The slow growth is a physiological feature of the new emerging light economies that rely upon knowledge intensive but capital saving technologies.

The moderating effects of service solution characteristics on competitive advantage

The objective of this study is to improve the understanding of the moderating effects of service solution characteristics on competitive advantage of knowledge-intensive business services (KIBS). This study is among the first to systematically operationalize the contingents in the absorptive capacity construct as service solution characteristics, that is, intangibility, heterogeneity, inseparability, and perishability, and tested them in the KIBS sector. Using a sample of 327 new technology-based KIBS firms in Finland, a hierarchical multiple regression analysis is applied to test the hypothesized moderator effects. The results suggest that service solution characteristics moderate the effects of the antecedents on absorptive capacity and the effect of absorptive capacity on competitive advantage. Guidelines are provided to practitioners to deal with projects with different service solution characteristics.

Inter-industry job mobility in the knowledge economy in Finland

Purpose – The purpose of this paper is to investigate inter-industry labor mobility, paying special attention to workers who move into high-tech (HT) sectors or knowledge-intensive business services (KIBSs). This study inquires whether skilled workers are mobile and whether the characteristics of mobile workers support the effective transfer of knowledge across industries. Design/methodology/approach – Census data representing 7 percent of Finnish residents were used. The micro-econometric estimation method with correction of sample selection bias was applied. Findings – The results show that young workers are the most mobile, whereas mobility decreased for those with previous work experience, higher education and higher income level. These findings indicate that the highly skilled workers are not necessarily the most mobile, a trend that may weaken the effectiveness of knowledge spillover. However, on average, highly educated workers move into KIBS sectors more often than to other sectors, and HT sectors attract workers who have higher incomes, which may indicate that their skills are highly valued. As a result, knowledge spillovers may emerge. The knowledge spillovers resulting from job mobility are concentrated in large growth centers that have universities. Originality/value – This study provides a new and topical viewpoint to the mobility literature by focussing on skilled workers and their movement toward the HT and KIBS sectors.

The Determinants of Innovative Work Behavior in the Knowledge Intensive Business Services Sector in Malaysia

Innovative work behavior plays a central role in the long-term survival of knowledge-intensive business services in Malaysia. Even though innovation and creativity and their influences on the Malaysian economy and its future growth are important, research on this area is still inadequate. Underpinned by the Social Exchange Theory, this empirical study attempts to determine the relationship that may exist between pro-innovation climate, leader-member exchange (LMX), and social capital with the innovative work behavior (IWB) among the knowledge workers in the KIBS sector in Malaysia. A quantitative method was utilized and a total of 1520 questionnaires was distributed and resulted in 20.6% response rate. The results revealed that there were significant relationship between pro-innovation climate, social capital and leader-member exchange with the innovative work behavior of knowledge workers. In addition, among the three independent variables, pro-innovation climate had been found to be the most significant predictor of innovative work behavior.

Complementarities between innovation policies in emerging economies. The case of Argentina's software sector

Fil: Motta, Jorge Jose. Universidad Nacional de Cordoba. Facultad de Ciencias Economicas; Argentina

Diffusion of Innovation in Service Firms (Hungarian versus Slovakian Business Service Firms)

The current global financial and economic crisis has brought into prominence the patterns of economic modernisation of post-socialist countries in the Central and Eastern European (CEE) region. One of the key factors of successful modernisation and sustainability of competitiveness in these economies is the firms’ innovative capability. The paper aims to map and assess the various forms of organisational innovations and their drivers based on original company survey data collected in Hungary and Slovakia among firms operating in the Knowledge Intensive Business Services sector in 2008 and 2009. Die aktuelle globale Finanz- und Wirtschaftskrise hat die Muster der wirtschaftlichen Modernisierung der post-sozialistischen Landern in Mittel- und Osteuropa (CEE) in den Vordergrund geruckt. Einer der wichtigsten Faktoren fur erfolgreiche Modernisierung und Nachhaltigkeit der Wettbewerbsfahigkeit in diesen Landern ist die Innovationsfahigkeit der Unternehmen. Der Artikel zielt darauf ab, die verschiedenen Formern organisationaler Innovationen und ihre Treiber abzubilden und zu bewerten auf der Grundlage einer Befragung von Unternehmen aus dem Bereich der wissensintensiven Unternehmensdienstleistungen in der Slowakei und Ungarn in 2008 und 2009.

Declining Innovation Performance of the Hungarian Economy: Special Focus on Organizational Innovation. The Example of the European Community Innovation Survey (CIS)

In this paper the authors intend to examine the innovaton performance of the Hungarian frms before and following the period of the global fnancial crisis and economic downturn. Contrary to the mainstream approach non-technological innovaton, more precisely workplace innovaton is put into the focus of the analysis. The authors argue that this is a neglected dimension of frms’ innovaton actvites which may become an important source of compettveness at company level and thus it deserves more atenton. The analysis of empirical data of the various waves of the European Community Innovaton Survey (CIS) on non-technological innovaton shows that the innovaton performance of the Hungarian frms is declining. The authors complement this statstcal analysis with the results of the European Working Conditons Survey demonstratng that there are signifcant differences in the innovaton performance of such country groups as the EU-27, the Nordic and the Post-Socialist countries. Beside the country-specifc comparison, the authors evaluate the performance of the Hungarian and Slovakian knowledge-intensive business service sector identfed as a driver playing a “benchmark” role in speeding up workplace innovatons. Finally, some key lessons are drawn indicatng the need for a map on the distributon of different work organizaton forms in order to beter understand the companies’ innovaton actvity and skill requirements.

Variety in the knowledge base of Knowledge Intensive Business Services

Knowledge Intensive Business Services (KIBS) are intermediary firms which specialise in knowledge screening, assessment and evaluation, and trade professional consultancy services. The remarkable rise of this broad class of activities is perceived by many as the natural by-product of modern knowledge economies within which increasing specialisation induces the need for professional agents in the markets for external knowledge. This paper addresses critically a conceptual flaw in the specialised literature which portrays KIBS as a homogeneous group of activities. Using official data on occupational information in the United States we observe and analyse high variety across KIBS sectors’ occupational structures and skill requirements.

Location Attributes and Start‐ups in Knowledge‐Intensive Business Services

This paper examines start‐ups in knowledge‐intensive business services (KIBS) across Swedish regions by individuals with a formally recognized capacity to produce and develop advanced business services. The empirical analysis focuses on whether their involvement in entrepreneurship may be explained by location attributes. As much as 75 percent of the KIBS founders have prior work experience from business services, suggesting that KIBS start‐ups are more frequent in regions where the KIBS sector is already large. Controlling for the stock of potential entrepreneurs and the stock of KIBS firms, it is shown that variables reflecting both supply‐side conditions and market size influence KIBS start‐up activity. Results are consistent with the hypothesis that KIBS entrepreneurship in a region is stimulated by the simultaneous presence of (i) knowledge resources conducive for the generation and diffusion of knowledge and ideas upon which new firms can be established and (ii) a large market.

ABSORPTIVE CAPACITY AND INNOVATION IN THE KNOWLEDGE INTENSIVE BUSINESS SERVICE SECTOR

Innovative activity is performed to a considerable extent in the service sector, namely within the so-called knowledge intensive business services (KIBS). Particularly emphasizing the role of absorptive capacity, we analyze possible determinants of incremental and radical firm innovation using firm micro data from the KIBS Foundation Survey. The results show that access to knowledge through networking and cooperation is of utmost importance for innovative activity in the KIBS sector. Access to knowledge from universities and research institutions is particularly important for radical innovation, notwithstanding the degree of formality of cooperation. In contrast, access to knowledge from clients or suppliers only has a significant impact on the probability to innovate if the cooperation with these partners is based on formal cooperation via joint projects or formal cooperation contracts. Furthermore, we find empirical evidence for a positive correlation between KIBS firms and clients from the manufacturing sector: these stimulate in particular incremental, but also radical innovation.

Knowledge-Intensive Business Service as innovation agent through client interaction and labour mobility

Theoretical propositions often maintain that the Knowledge-Intensive Business Service (KIBS) sector is important in stimulating innovation activity in other industries. Empirical results from quantitative innovation surveys on the other hand generally regard KIBS as less important innovation partners for other firms. Such results may rely on the fact that quantitative surveys do not seize all the roles KIBS firms have as knowledge sources. The paper thus demonstrates that many workers left the KIBS sector in Norway to start working in other sectors during parts of the 1990s, signifying a flow of knowledge following the workers out of the KIBS sector.

Knowledge Intensive Business Services and Urban Industrial Development

This paper analyses the role of knowledge intensive business services (KIBS) as innovation agents for other firms and industries with empirical evidence from the capital region of Oslo, Norway. It focuses in particular on the role of two sectors (software industry and organisational consultants) in stimulating innovation and growth, showing that firms in the two KIBS sectors mainly provide products and services tailored to individual clients and have frequent face-to-face meetings, relationships that may stimulate innovation. Moreover, data reveal that Oslo firms are more frequent users of consultancy services than firms located outside urban areas, suggesting a gap between ‘insiders’ and ‘outsiders’.

Singapurs Weg in die Wissensökonomie

Singapore’s road to a knowledge-based economy. The role of knowledge-intensive business services in the national system of innovation. In 1998, Singapore’s government announced its vision to transform the city state into a knowledge-based economy (KBE) through a gradual shift from value adding to value creation. As both users and producers of knowledge, knowledge-intensive business services (KIBS) are commonly seen as a cornerstone of the KBE. After assessing the development, size and structure of Singapore’s KIBS sector, we use data from innovation surveys of manufacturing and KIBS firms to assess the latter’s dual role as innovators and bridges for innovation. Our results allow us to point out policy recommendations and sketch possible avenues for further research.

Internet-based business among knowledge intensive business services: Some Irish regional evidence

Technological innovation associated with e-business is now widely appreciated as one of the key drivers of positive economic change and innovation performance and provides a potentially important test of a region or nation's ability to generate and sustain competitiveness. Specifically, the importance of the knowledge-intensive business service sector to economic growth will increase significantly with rapid development of the service economy and the rise of e-business. Using a quantitative methodology, the research described in this article was aimed at exploring these issues relative to e-business activities within the two regions of Northern Ireland and Republic of Ireland. We examined e-business ‘global’ drivers, barriers, uses and benefits, and found (among other things) a high level of website ownership (64 per cent). The main perceived barrier to future e-business plans was a lack of government support.

THE GEOGRAPHY OF GAZELLES IN THE NETHERLANDS

Tijdschrift voor Economische en Sociale GeografieVolume 96, Issue 1 p. 121-127 THE GEOGRAPHY OF GAZELLES IN THE NETHERLANDS ERIK STAM, ERIK STAM Erasmus Research Institute of Management, Erasmus University, PO Box 1738, 3000 DR Rotterdam, The Netherlands and Faculty of Geosciences, Utrecht University, PO Box 80115, 3508 TC Utrecht, The Netherlands. E-mail: e.stam@geog.uu.nlSearch for more papers by this author ERIK STAM, ERIK STAM Erasmus Research Institute of Management, Erasmus University, PO Box 1738, 3000 DR Rotterdam, The Netherlands and Faculty of Geosciences, Utrecht University, PO Box 80115, 3508 TC Utrecht, The Netherlands. E-mail: e.stam@geog.uu.nlSearch for more papers by this author First published: 31 January 2005 https://doi.org/10.1111/j.1467-9663.2005.00443.xCitations: 49AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Citing Literature Volume96, Issue1February 2005Pages 121-127 RelatedInformation