Knowledge-intensive Business Services Industries Research Articles

A Study on the Imact of Industrial Diversity on the Agglomeration by Type of Knowledge-Intensive Business Service Industry: Comparing Capital Region to Non-Capital Region

4차 산업혁명이 대두되면서 지역 내 산업생태계를 구성하는 기업들에게 지식을 가공한 중간재를 제공함으로써 혁신과 생산성 증진을 유발하는 지식집약사업서비스의 중요성은 점차 증대되고 있다. 본 연구에서는 우리나라의 75개 시 지역들의 2008년에서 2016년까지의 자료를 활용하여 산업 다양성이 KIBS 산업의 유형별 집적에 미치는 영향을 패널모형 분석을 활용하여 검증하였다. 또한 이 과정에서 수도권과 비수도권의 입지에 따라 산업 다양성이 미치는 영향의 차이를 함께 검증하였다. 분석 결과 일반시 전체를 대상으로 한 경우 산업 다양성이 모든 유형의 KIBS 산업의 집적을 촉진하는 것으로 나타난 반면, 수도권 지역의 산업 다양성의 증대는 기술 기반-전문성 주도 형태의 KIBS 산업의 집적을 약화시키며, 그 외의 유형에 대해서는 집적을 촉진시키는 것으로 나타났다. 또한 비수도권 지역에서는 산업 다양성의 증대가 기술 기반-전문성 주도 형태의 KIBS 산업의 집적을 촉진시키는 반면, 그 외의 유형에 대해서는 유의한 영향을 미치지 못하는 것으로 검증되었다.

Impact of Industrial Diversity on the Accumulation of Knowledge Intensive Business Service Industry

Impact of Industrial Diversity on the Accumulation of Knowledge Intensive Business Service Industry

An evaluation of knowledge intensive business services industry efficiency: the Italian case

Knowledge intensive business services (KIBS) are private enterprises or organisations mainly concerned with providing knowledge-intensive inputs to the business processes of other organisations, represent a core feature of the knowledge-based economy functioning and play an important role in local and regional economies as a source of added value. The paper investigates the application of data envelopment analysis (DEA) in conjunction with financial ratios analysis (FRA) to estimate and compare the performance of the KIBS industry in Italy over the period 2012-2017. In particular, we evaluated the three main segments that identify KIBS services. The empirical investigation proposed reveals that the results of FRA approach do not provide sufficient and complete information on the efficiency of KIBS firms, while major advantages behind using of DEA are related to its structural characteristic in measuring performance and identifying opportunities for possible efficiency improvements by looking at the differences between efficient companies and inefficient ones.

An evaluation of knowledge intensive business services industry efficiency: the Italian case

Knowledge intensive business services (KIBS) are private enterprises or organisations mainly concerned with providing knowledge-intensive inputs to the business processes of other organisations, represent a core feature of the knowledge-based economy functioning and play an important role in local and regional economies as a source of added value. The paper investigates the application of data envelopment analysis (DEA) in conjunction with financial ratios analysis (FRA) to estimate and compare the performance of the KIBS industry in Italy over the period 2012-2017. In particular, we evaluated the three main segments that identify KIBS services. The empirical investigation proposed reveals that the results of FRA approach do not provide sufficient and complete information on the efficiency of KIBS firms, while major advantages behind using of DEA are related to its structural characteristic in measuring performance and identifying opportunities for possible efficiency improvements by looking at the differences between efficient companies and inefficient ones.

The effects of R&D cooperation on innovation performance in the knowledge-intensive business services industry: focusing on the moderating effect of the R&D-dedicated labor ratio

ABSTRACT This study conducted an empirical estimation of the effects of R&D cooperation and the proportion of R&D personnel on the performance of four different kinds of innovation in the two major KIBS industries (t-KIBS and p-KIBS). For the empirical analysis, we used a multivariate probit model with 956 samples from the KIBS industry collected using the officially adopted Korean Innovation Survey of 2016. We found that vertical R&D cooperation had a positive effect on the overall performance in the t-KIBS industry, especially on service and marketing performances. On the other hand, horizontal R&D cooperation (competitor and institutional innovation) had a heterogeneous effect on the innovation of the KIBS industry depending on the type of cooperation. The proportion of R&D-dedicated personnel had a positive effect on service product innovation in the p-KIBS industry, but contrary to expectation, a high proportion of R&D personnel had no positive moderating effect with R&D cooperation in improving innovation performance. On the contrary, a high proportion of R&D personnel combined with institutional cooperation negatively affected the achievement of service innovation.

Efficiency assessment of knowledge intensive business services industry in Italy: data envelopment analysis (DEA) and financial ratio analysis

PurposeWithin the service sectors, Knowledge Intensive Business Services (KIBS) play an important role in local and regional economies as sources of competitive advantages and providing knowledge-intensive inputs to the business process of small and medium-sized enterprises. This study aims to analyze the changes in financial performance of KIBS industry in Italy over the period from 2012 to 2017.Design/methodology/approachThis paper examines the efficiency of the KIBS firms by applying data envelopment analysis (DEA) to compute the Malmquist Productivity Index for the period under investigation. The DEA-based Malmquist productivity analysis is applied at firm level using a sample consisting 1.674 companies, representative of the Italian KIBS sector and related to three different NACE activity code (72-computing services; 73-research and development; 74 other professional business activities). The efficiency measures are then used to characterize KIBS firm financial performance through the analysis of average productivity patterns grouped by Italian geographical regions. The Malmquist productivity measures are decomposed into two components: efficiency change and technical change index. The overall analysis is coupled with a financial ratio analysis approach, selecting return on equity (ROE) and leverage ratio as descriptor to validate the results and better characterize differences in efficiency patterns among geographic-based groups of KIBS companies.FindingsOver the period 2015-2017, the results show that the average annual growth of the overall Malmquist productivity index was positive in nine Italian regions that represent only 17 per cent of the total KIBS firms selected. On the other side, a decrease of the average performance measure is observed for the five geographic areas that contribute to 75.7 per cent of the total sample. In general, the technological change component, as a measure of innovation, strongly limits the productivity growth behavior of KIBS industry for all geographic regions. The use of selected financial ratio does not provide additional insight to the performance investigation and further in-depth studies are needed to better evaluate the correlation between average productivity results and regional business dynamics.Practical implicationsThe study investigates the applicability of DEA-based Malmquist indices to the analysis of the productivity behavior of KIBS industry at regional level. It will be of value to provide first evidence to the policymakers to understand industry growth pattern in time frame selected and relate them to additional business factors to detect specific industry constraints.Originality/valueThe analysis in this paper contributes to the existing body of knowledge on industry performance measurement by applying specific analytical techniques to the productivity of Italian KIBS companies. The paper also contributes to the limited body of academic literature investigating KIBS industry at national level proposing a methodological framework that constitutes a first attempt to track average productivity behavior at regional level.

Customer referencing as business actor engagement behavior – Creating value in and beyond triadic settings

The rising impact of customer engagement is increasingly evident in business markets. This paper studies customer referencing as an important manifestation of engagement behavior in the business-to-business (B2B) context. To extend extant research, which has thus far examined referencing almost exclusively from the seller's viewpoint, we study how referencing affects value creation in business networks. We explore resources contributed and gained though referencing and the resulting value outcomes for the entire reference triad (the seller, the reference customer, and the prospective buyer). Empirically, the paper draws on an extensive field study conducted in knowledge-intensive business service industries. The results explicate how customer referencing affects value creation within and beyond the triad, by i) enhancing or impairing actors' internal processes; ii) strengthening or damaging relationships between the triad actors; and iii) facilitating exchange in their broader business network. The paper contributes to research on customer referencing by explicating its role in value creation on a network level. As one of the first studies on engagement in the B2B context, this paper contributes to the emerging actor engagement research by analyzing how influencing behavior operates in a business network. These insights can help firms to facilitate exchange in complex markets.

Measuring the intellectual capital of Italian listed companies

PurposeThe purpose of this paper is to investigate the relationship between intellectual capital (IC), measured in terms of the market to book (MTB) ratio, and potential key determinants of IC value such as intangible assets (IA) and a range of other factors.Design/methodology/approachThe study is conducted for a sample of 140 Italian corporations over the period 2009-2013. Applying a holistic market-based approach, the relationship between IC value and selected determinants from the extant literature is tested. Five hypotheses are tested using a pooled OLS regression model, while controlling for time. ROE is employed as a useful firm profitability indicator from the perspective of an equity investor. Moreover, four robustness tests are undertaken.FindingsThe results show that IA, profitability, leverage, industry type, auditor type, and family ownership positively affect IC value, whereas SIZE and AGE negatively affect IC value. Moreover, the findings of the robustness tests suggest that all firms, and not just knowledge-intensive business service industry firms, manage knowledge.Research limitations/implicationsThe validity of the findings is limited to the Italian context, as the study focuses on a sample of companies listed on the Milan Stock Exchange, all of which prepare their individual financial statements according to IFRS. Further limitations are related to the use of market value in the short term, as it is influenced by market volatility. The study may allow academic researchers to investigate the impact of other non-accounting sources of information on market value within a multidisciplinary perspective.Practical implicationsThis paper also has implications for managers and practitioners. The findings suggest that managers should not take for granted that firm growth (an increase in SIZE) alone will lead to an increase in IC value, in the absence of a consistent IC-oriented investment strategy. Managers should also avoid smoothing their IC investment as the company grows, in order to maintain a stable MTB ratio. Further, standard setters should seek to explore better means of disclosing non-accounting information relating to IC value.Originality/valueThis paper contributes to the IC literature as it is the first study which applies the market capitalization approach to analyze IC value determinants in the Italian context, within the framework of IFRS. The findings reveal some interesting relationships between the MTB ratio and recognized intangible investments, which are found to be insignificant in previous studies, confirming that, through the holistic effect, the MTB ratio may be a good proxy for IC.

How do collaboration and investments in knowledge management affect process innovation in services?

Purpose Despite the keen interest in radical and incremental innovation, few studies have tested the varying impact of firm-level factors in service sectors. This paper analyses how collaboration with existing and prospective users and investments in knowledge management (KM) practices can be adapted to maximise the outputs of radical and incremental process innovation in a knowledge-intensive business service industry. Design/methodology/approach Original survey data from 166 information technology service firms and interviews with 13 executives provide the empirical evidence. Partial least squares-structural equation modelling is used to analyse the data. Findings Collaboration with different types of users, and investments in KM practices affect radical versus incremental process innovation differently. Collaboration with existing users influences incremental process innovation directly, but not radical innovation; and prospective user collaboration matters for radical, but not incremental innovation. Furthermore, for radical innovation, investments in KM practices mediate the impact of prospective user collaboration on innovation. Research limitations/implications While collaboration with existing users for incremental process innovations does not appear to generate significant managerial challenges, to pursue radical innovations firms must engage in intensive collaboration with prospective users. Higher involvement with prospective users requires higher investment in KM practices to promote efficient intra- and inter-firm knowledge flows. Originality/value This study is based on a large-scale survey, together with management interviews. Radical and incremental innovations in the service industry require engagements with different kinds of users, and the use of KM tools.

Determinants of Technological Innovation Performance of Knowledge-Intensive Business Service Industries in Korea

Determinants of Technological Innovation Performance of Knowledge-Intensive Business Service Industries in Korea

The Productivity Deficit of the Knowledge-Intensive Business Service Industries in Switzerland

The Productivity Deficit of the Knowledge-Intensive Business Service Industries in Switzerland

Dynamics of Firm Profitability and Growth: Do Knowledge-Intensive (Business) Services Persistently Outperform?

This paper explores the persistence of profitability and growth for firms operating in the Greek service sector, paying special attention to knowledge-intensive services (KIS) and knowledge-intensive business services (KIBS). The generalized method of moments is used on a rich panel of firms over a recent nine-year period. Quantile regressions are complementarily applied for KIS and KIBS industries. The key results from both growth and profit dynamics suggest that firms in KIS and KIBS industries persistently outperform firms in less knowledge-intensive service industries, pointing to strategic advantages of the former. Importantly, KIS and KIBS seem to be able to sustain their growth and profitability persistent trends even in times of crisis. Further insight into these issues is provided by the quantile analysis, the exploration of the profitability and growth inter-linkages, and the investigation of differences among various size groups in KIS and KIBS.

Information Technology Services: A Key Knowledge-Intensive Business Service Industry in Hong Kong SAR, China

As the global economy focuses increasingly on Asia, Hong Kong’s role as an intermediary between China and the rest of the world merits investigation. In view of the increasing importance of knowledge-based business services and Hong Kong’s recent drive to promote innovation and high-tech services, economists and policy makers must understand Hong Kong’s capacity to support economic development in the Asian region. Following a theoretically informed discussion of the role of information technology (IT) services within the broader category of knowledge-intensive business services (KIBS), Hong Kong’s IT services sector is described and analysed to determine its potential for supporting an innovative local services environment and to identify the key opportunities and challenges involved in further developing the sector. In-depth interviews of important actors in the IT services sector in Hong Kong and case studies of firms that have leveraged IT services supplement our analysis of data on IT service production and usage. IT services represents an opportunity through which Hong Kong can use targeted policy to drive growth and expand and deepen economic relations with Mainland China.

The Geographic Concentration and Locations of Korean Knowledge Intensive Business Service Industries

The Geographic Concentration and Locations of Korean Knowledge Intensive Business Service Industries

The Role of Regional Conditions for Newly Emerging KIBS Industries in the Face of Radical Institutional Change

This paper is devoted to analysing the effect of regional conditions on start-up activities in the knowledge-intensive business service (KIBS) industries. The region under analysis is the former German Democratic Republic (GDR), which experienced a “shock transition” of the institutional framework in the course of its reunification with the Federal Republic of Germany in 1990. KIBS industries did not exist in the former GDR. The results show that KIBS start-up activity emerged in densely populated areas and in regions with a large market size. The regional stock of knowledge has a significant positive effect on start-up activity as well. Altogether, the findings show that regional conditions matter even if the economic system that shaped these conditions followed completely different guiding principles from a market economy.

Characterisation of knowledge-based networking strategies: insights from the KIBS sector

In the current economy, individual firms cannot possess all the knowledge that is necessary to compete. Hence, networking relationships become an important way through which firms can develop their potential by accessing to resources of other players. However, the networking strategies that companies implement can vary depending on the nature of their competitive conditions and on their specific goals. The paper analyses this topic in the case of a particular knowledge-intensive business service industry, investigating the relationship between knowledge strategies and networking strategies pursued by companies. By developing and combining classifications previously proposed in the literature, the study examines the ways companies set their networking strategies based on their capability and necessity to share knowledge with specific business partners clients, suppliers, service providers, etc..

The Role of the Business Consulting Industry in the Korean National Economy: An Input-Out Analysis

Consulting industry is a knowledge intensive business service industry to lead to knowledge creation as well as support high value creation of other industries. While the consulting industry has a great ripple effect on whole industries, there is a lack of interest in the consulting industry. Thus, this study investigates a ripple effect of the consulting service on the national economy using an Input-Output analysis. We summarize some of our findings as follows. First, A production of 1.0 won in the business consulting industry induces production of 0.6933 won in 2005 and 0.7851 in 2009; value-added of 0.2881 won in 2005 and 0.3039 won in 2009. A production of 1.0 billion won in the business consulting industry Industry produces employment for 0.1124 persons in 2005 and 0.1207 persons in 2009. Second, the supply shortage of 1.0 won in the business consulting industry prevents other industries from producing 2.6759 won in 2005 and 3.0145 won in 2009. Third, a 10% increase in the price level of the business consulting industry raises the overall price level from 0.1691% in 2005 to 0.2161% in 2009. The research results show that consulting industry has been increasing a effect on Korea national economy.

A fact-oriented ontological approach to human process modeling for knowledge-intensive business services

Modern business environment emphasizes the role of knowledge-intensive business services (KIBS). As well as the enterprises in any other kinds of industries, business process management (BPM) can be a source of core competency for the enterprises in KIBS industry. However, most of the business processes in KIBS are human processes which are collaborative, innovative, and dynamic, which cannot be supported well by current BPM technologies. Human interaction management (HIM) has emerged as an alternative theory to deal with human processes in KIBS. But, the current ways of process modeling and management in HIM have a problem of complexity, especially in terms of realizing its principle of ‘supportive activity management’. This research adopts fact-oriented ontological approach to address this problem. Based on fact-oriented approach, human-friendly condition modeling and state management during supportive activity management can be achieved.

Condition-based process patterns for modeling of human processes in Knowledge-intensive Business Services

The role of Knowledge-intensive Business Services (KIBS) has been enlarged in modern business environment. As well as the enterprises in any other kinds of industries, Business Process Management (BPM) can be a source of core competency for the enterprises in KIBS industry. However, most of the business processes in KIBS are human processes which are collaborative, innovative, and dynamic, which cannot be supported well by current BPM technologies. Human Interaction Management (HIM) has emerged as an alternative theory to deal with human processes in KIBS. Especially, the principle of ‘supportive activity management’ in HIM allows flexible process execution considering human characteristics. But, the condition-based process logic modeling to realize ‘supportive activity management’ may be too complicated work. This research suggests utilizing process patterns to address this problem, and defines condition-based process patterns divided into workflow patterns and interaction patterns. Using and combining process patterns facilitate modeling larger processes.

Are knowledge-intensive business services so “hard” innovators? Some insights using Spanish microdata

Knowledge-intensive business services (KIBS) have received great attention over the last years, in part due to their similarities with high-innovative manufacturing firms. Nevertheless, many innovations carried out by KIBS are of a soft nature. The objective of this paper is to identify patterns of innovation in KIBS firms when non-technological innovation is taken into account. To do so, we employ microdata for 1,837 Spanish KIBS firms. The results obtained show that there are important differences in the innovation behaviour of KIBS firms. In particular, four innovation modes are distinguished: hard innovation, soft innovation, lonely innovation and knowledge diffusion. These modes are evenly distributed within KIBS industries and in three out of the four modes soft innovation plays a relevant role.JEL codes: L84, O39