Knowledge-intensive Business Services Research Articles

Location choice of foreign direct investment in technical KIBS in China: impact of human capital and intellectual property rights protection

PurposeThis study considers the “technology creation” characteristic of technical knowledge-intensive business services (T-KIBS) and examines how human capital and intellectual property rights (IPR) protection affect the location choice of foreign direct investment (FDI) in China for two types of T-KIBS: (1) information transmission, software and information technology (ICT) services and (2) scientific research and technology (SCI) services.Design/methodology/approachOur empirical analysis is based on panel data on 22 Chinese provinces from 2009 to 2017. We use the generalized method of moments estimation for the regression analysis.FindingsFDI in ICT services prefers regions with high human capital, while FDI in SCI services favors regions with good IPR protection.Research limitations/implicationsFuture research could use more comprehensive data and qualitative interviews to enhance the findings.Practical implicationsThese findings provide a foundation for China’s future policy on attracting FDI into T-KIBS, especially in areas related to human capital and IPR protection.Originality/valueThis study bridges the research gap on the FDI location choice of T-KIBS in China by clarifying the influences of human capital and IPR protection and providing theoretical support for the location choice of T-KIBS FDI.

Estimating the influence of KIBS spillovers through the knowledge production function and the role of international trade

A research gap exists regarding how research and development (R&D) expenditures contribute to the generation of innovative spillovers through knowledge-intensive business services (KIBS), particularly within the manufacturing and business services subsectors. These spillovers have a networking effect on innovation products in the manufacturing and services subsectors, as captured by the knowledge production function (KPF). The study proposes a two-stage model for analyzing the elasticities of production and economies of scale that arise from estimating singular knowledge production functions within a regional trade system. This model is tested for the case of the trade agreement of the United States, Mexico, and Canada (USMCA). The main results express that R&D expenditures embodied in KIBS spillovers have a significant effect on the generation of innovation outputs, in each of the USMCA countries and, reveal increasing returns to scale. Also, KPF elasticities, for the capital and the labor variables, proved to be inelastic and exhibited constant returns to scale. Additionally, the different estimates in each one of the USMCA countries expose diverse technologies of scale among the three countries.

Identifying the Role of Knowledge-Intensive Business Services in the Korean Economy as a Sustainable Innovation Tool Using Input–Output Analysis

This study aimed to determine the role of KIBSs as a tool for sustainable innovation in a country’s economic system. Specifically, the degree and role of their impact on the Korean economy were analyzed and compared for the entire KIBS sector, T-KIBSs (a new technology-based professional service), P-KIBSs (a traditional professional service), and every subsector. For this purpose, the demand inducement model, supply inducement model, and interlinkage effects method were applied using the 2019 input–output table published in 2022. The analysis showed that the indirect production inducement effect of the entire KIBS industry on other industries was KRW 0.800, the indirect added value inducement effect was KRW 0.330, and the supply disruption effect was KRW 1.144. For T-KIBS, the indirect production inducement effect was KRW 0.687, the indirect added value inducement effect was KRW 0.272, and the supply disruption effect was KRW 0.730. For P-KIBSs, the indirect production inducement effect was KRW 1.472, the indirect added value inducement effect was KRW 0.646, and the supply disruption effect was KRW 2.657. Finally, regarding the economic ripple effect of the KIBS subsector, legal and management support services and advertisements corresponding to P-KIBSs showed higher figures than the T-KIBS subsectors in all sectors, including production inducement, the added value inducement effect, and the supply disruption effect. These results revealed that in the South Korean economic system, KIBSs contribute to production and value addition across all industrial sectors. It is apparent that the absence of supply significantly disrupts other industries. Furthermore, production inducement effects are evenly distributed among all the KIBS subsectors in the secondary and tertiary sectors, while the value-added effects have a greater impact on the tertiary sector. In terms of the supply shortage effects, the secondary sector experiences a more significant impact. This underscores the crucial role of KIBSs in sustaining and enhancing overall economic activity in South Korea.

The Spatial Pattern and Influencing Factors of Urban Knowledge-Intensive Business Services: A Case Study of Wuhan Metropolitan Area, China

The Spatial Pattern and Influencing Factors of Urban Knowledge-Intensive Business Services: A Case Study of Wuhan Metropolitan Area, China

Exporting Knowledge-Intensive Business Services (KIBS): Innovation and Complementary Factors

Exporting Knowledge-Intensive Business Services (KIBS): Innovation and Complementary Factors

Is the Knowledge‑intensive Business Services Sector Crisis‑robust or Crisis‑resilient? A Comparative Study of European Union Countries

The paper examines the crisis robustness and resilience of the knowledge‑intensive business services (KIBS) sector. The hypothesis is tested that the KIBS sector is crisis‑robust rather than crisis‑resilient. The study covers 2000–2021, divided into two crisis periods (the global financial crisis and the COVID–19 pandemic) and three non‑crisis periods. The growth rates of value added and employment for the sectors and periods covered by the study are compared. The study is based on data from Eurostat, and it refers to the EU–27, making it possible to carry out comparative research between EU countries, as well as between the EU members before 2004 (i.e., the EU–14 or ‘old’ members) and those who joined in 2004 or later (i.e., the EU–13 or ‘new’ members). The study contributes to the literature by demonstrating that it is necessary to distinguish between the concepts of crisis resilience and crisis robustness in both scientific research and policy strategies, as well as to pay more attention to the issue of crisis robustness. It also makes a contribution by indicating that KIBS have significant potential to contribute to building crisis resilience and crisis robustness in the companies that use them and in the whole economic system. The empirical results demonstrate that the KIBS sub‑sectors, i.e., computer and information services and professional, scientific and technical services, are crisis‑robust, which is not the case for the manufacturing sector. The KIBS sector’s ability to maintain stable growth during crisis periods is more visible than for other service industries. The Polish sector of professional, scientific and technical services showed the most stable upward trend through all analysed periods. Poland also recorded impressive growth in value added in computer and information services during the pandemic period, but when considering the whole period, other countries achieved better results, e.g., Romania.

Value co-creation and external consultancy knowledge for public innovation in Europe

This paper proposes a framework for explaining the collaboration between co-creation and LAB design methodologies with KIBS (Knowledge Intensive Business Services), which include ICT services, when public services were immerse in an innovative process at government units within six EU-20 countries in the Co-VAL H2020 survey (Spain, France, Hungary, the Netherlands, Norway, and the United Kingdom). The proposed channels of interaction of user´s at the centre methodologies and KIBS is based upon the new public government paradigms and the public service dominant logic. The model examines the propositions of these paradigms, as to how co-creation processes are embedded in the interaction of KIBS and final customers, by deriving the channels through which those consultancies contribute to fostering innovation in various government units across the EU-20 (1875 public units of work surveyed), particularly in relation to improving public business-related services. The study first utilizes unilateral equations to estimate the overall effects of all the covariates and, in a second step, utilizes systems of equation models to derivate the interaction of users at the centre methodologies on KIBS and, consequently, the indirect effects that these processes have on the innovation processes of the public units of work that contracted those business services. Results conclude that value co-creation is embedded on KIBS with the decisive influence of inputs provided by final customers of the innovative processes as the public dominant service logic states. The analysis is based on the Co-VAL EU 2020 Survey, testing the causal effects that KIBS consultancies have on public innovation processes, especially those related to business services or business organizations, with a focus on the reinforcement of co-creation, LAB design, and co-production methodologies. To our knowledge this study is the first to estimate those indirect influences of user´s at the centre methodologies on public innovation processes that contract KIBS to generate positive dynamics improvements of public services.

Contrasting innovation dynamics of professional-technological knowledge intensive business services in metropolitan areas

Formulation of the problem. The study examines knowledge-intensive business services (KIBS) firms' capability to access, process, and transform information into innovation. KIBS are defined as facilitators, carriers of knowledge, and sources of innovation for other sectors. KIBS play an important role in the production, use, and transfer of knowledge to the manufacturing sector. KIBS activities do not demonstrate a uniform structure within themselves, so a dual classification as professional services (P-KIBS) and technological services (T-KIBS) based on functioning and input has been developed. KIBS activities are concentrated in large cities. Major cities or capitals have well-developed infrastructure, public administration centers, advanced social activities, and numerous research institutes and universities. All of them attract a highly skilled population. Regarding metropolitan city economic growth, KIBS stand out because of their high added value, high income, high innovation returns, and high financial capacity, and they contribute to development. The purpose. The present study aims to reveal the innovative capacities and dynamics of P-KIBS and T-KIBS firms operating in the metropolitan area of Ankara, Turkey's capital city. To reach this aim, Turkey's capital city Ankara is analyzed by using the results of a questionnaire applied to 410 small and medium-sized (SMEs) KIBS firms, 146 of which are P-KIBS firms and other 264 are T-KIBS firms. Methods. In the course of the research and preparation of the article, the authors used several scientific methods, both philosophical and general scientific, as well as specific scientific methods. In particular, the methods of analysis and synthesis, induction and hypothetical-deductive method, mathematical-statistical and spatial analysis, methods of grouping and classification, questionnaires and surveys, etc., were used. The results. There are notable differences between the P-KIBS and T-KIBS firms, considering their spatial distribution patterns and the dynamics of their innovation processes. The spatial distribution patterns of the KIBS firms were revealed. While T-KIBS activities demonstrate a spatial clustering tendency independent of the CBD, the P-KIBS firms prefer to locate within the CBD or its vicinity. KIBS sectors generally prefer to be situated by high-income residents, new settlements, secure and prestigious areas close to large public institutions such as ministries and general directorates. It was revealed that the T-KIBS firms are most densely located in the CBD and newly developing business districts of Balgat and Söğütözü, and in the Technology Development Zones of Ankara. P-KIBS firms, on the other hand, are more widely spread in the Çankaya and Yenimahalle districts. It was found that advances in information and communication technologies have a varied impact on the location selection preferences of P-KIBS and T-KIBS enterprises. According to the research results, the factors influencing the clustering of P-KIBS companies and T-KIBS firms were identified and determined. There is a significant relationship between the innovative P-KIBS and T-KIBS firms and their collaboration with other institutions. As a result of the the study, it has been determined that there is a significant relationship between collaboration, R&D, intrafirm and extrafirm social relationships on the innovation of KIBS firms and also contrasting innovation dynamics related to different classes of KIBS in metropolitan areas.

The dark side of KIBS agency, the creative economy, and regional sustainability

This contribution develops critique from analysing forms of misconduct by knowledge-intensive business services (KIBS) firms, especially the largest, globally located and client-interactive on all five continents. Management consultancy infractions range from supplying spurious advice, to advising clients on fraudulent practice, to acting complicitly in corrupt government practices, including engaging in ‘state capture’ by channelling internal state revenue into private holding bank accounts. Because the litany of misconduct is too massive for encompassing in a single contribution, and in the spirit of this task, the spotlight is only on a few cases that represent typical ‘creative economy’ companies contracted to ‘Big 3′ P-KIBS (Professional KIBS) corporations. Of importance to open innovation’s critical edge, the contribution articulates the puzzle of why academic KIBS research has presented the field without comment on its ‘dark’ side, questioning ‘leadership’ and ‘agency’ ‘observer’ and ‘confirmation bias’. For interpretation of data discovery, we utilise evolutionary ‘pattern recognition’ methodology set within an evolutionary theoretical framework.

Generic strategic positioning and organizational configurations in private micro-clinics

By linking concepts and ideas from the private health services (PHS) and Knowledge-Intensive Business Services (KIBS) literature with Porter's generic framework, this paper aims to identify the competitive positioning at a micro-clinic level in the private health services industry and to examine the perceived role of the institutions and intellectual capital associated with each one. A Qualitative Comparative Analysis (QCA) was used.The results show that organizational configurations are associated with proactivity when competing via differentiation. In contrast, cost leadership is linked to firms that compete with low tariffs and a defensivearchetype. Our work can serve as a basis to recommend specific competitive strategies for thehigh number of firms still following a stuck-in-the-middle positioning strategy.
  

The effects of innovations on peruvian companies’ sales: The mediating role of KIBS

Companies increasingly embrace open business-to-business innovation. In this context, knowledge-intensive business services (KIBS) play a crucial role as they can provide services and know-how to companies. As comparisons of digital innovation in Latin American companies are scarce, a more in-depth study is required of the role that KIBS plays in their digital innovation. This study therefore investigates the impact of KIBS and the implementation of innovations, including digital ones, on the sales of companies. Utilizing a Partial Least Squares Structural Equation Modelling (PLS-SEM), we scrutinize data from 959 companies in Peru. The findings reveal that internally implemented innovations do not have a statistically significant direct effect on sales. However, outsourcing KIBS emerges as a positive mediator in this relationship. Specifically, we find that companies that subcontract those services are more likely to implement innovations and to achieve a positive impact on their sales in the short-term. Despite the opportunities that digital innovation brings, its direct effect on companies’ sales still needs to be improved, especially for manufacturing companies.

KM Challenges in Small KIBS Companies: Multi-case Analysis in Two Countries

Knowledge Intensive Business Services (KIBS) – i.e. companies like e.g. computer services, consulting, engineering, business communication, and R&D support - are key players in the modern economies. They stimulate the innovativeness of businesses and societies. Their competitiveness is based on knowledge, which is their key production factor and also the kind of “goods” they sell. The large majority of KIBS companies have a small or medium size, which leads to major challenges because they manage their cognitive assets in a substantially informal and undeliberate way. They face several obstacles to managing knowledge, partly due to their limited resources, but also to the knowledge-intensive and intangible nature of their business processes and outputs. Such challenges, when not successfully identified and faced, may negatively impact competitiveness. The paper illustrates the findings of a qualitative investigation aimed at exploring the main KM challenges that KIBS SMEs face. These challenges were analysed with specific reference to the key KM processes, i.e.: knowledge acquisition, knowledge documentation and storage, knowledge sharing, knowledge application, and knowledge protection. The research is a multiple-case study based on interviews to key informants of 23 Italian and Polish KIBS SMEs of different sectors. The analysis made it possible to find recurring issues and highlight differences. The study provides food for thought for researchers and practitioners willing to clarify what KM processes need proper solutions for the effective management of knowledge in small KIBS.

How does digital transformation affect innovation in knowledge-intensive business services firms? The moderating effect of R&D collaboration portfolio

PurposeFirms are driven to ride on the digital wave in today’s open innovation ecosystem. This study aims to explore the effect of digital transformation (DT) on knowledge-intensive business services (KIBS) firms’ innovation ambidexterity, namely, radical versus incremental innovation, respectively. Meanwhile, the authors evaluated the moderating role of the complexity of R&D collaboration portfolio (i.e. organizational diversity and geographic diversity) in the above relationships.Design/methodology/approachUsing a panel data set of 171 Chinese listed firms in the information and communications technology services industry from 2010 to 2018, the proposed hypotheses were empirically attested.FindingsIt is found that DT has a positive relationship with radical innovation and an inverted U-shaped relationship with incremental innovation. In terms of the R&D collaboration portfolio, organizational diversity positively moderates the relationships between DT and innovation ambidexterity, respectively. The geographic diversity weakens the inverted U-shaped effect of DT on incremental innovation; however, its moderating role in the link between DT and radical innovation is not empirically verified.Originality/valueExtant scholars mainly addressed the interplay between KIBS firms and their manufacturing clients, while this study reveals the different consequences of DT on KIBS firms’ innovation ambidexterity to highlight the role of KIBS firms is an independent and essential innovator in a knowledge-driven economy. Notably, the findings contribute to knowledge management (KM) and R&D literature by confirming the diversity of the R&D collaboration portfolio is a critical KM strategy for KIBS firms to develop and promote external knowledge resources.

The Role of Embeddedness of Migrant Start-ups in Local Entrepreneurial Ecosystems During the COVID-19 Crisis

As with all start-ups, the COVID-19 pandemic has led to a changing environment for migrant start-ups. These changes have posed many challenges to altering strategic behaviour and approaches to driving business. We explored migrant start-ups’ embeddedness in entrepreneurial ecosystems by analysing data from 14 semi-structured interviews with start-ups from Berlin's knowledge-intensive business services sector. We argue that the success of migrant start-ups during crises is dependent mainly on the embeddedness in the local entrepreneurial ecosystem. Thus, we expect entrepreneurs to utilise local networks, infrastructures and interactions to help them cope with the challenges and pave the way for local and international business activities. Our results indicate that embedding in local entrepreneurial ecosystems and a sense of belonging, especially during the business formation phase, play a vital role for migrant start-ups in general and crisis. Revitalising the concept of local embeddedness while considering business development stages, this study challenges the prevailing notion of transnational networks as the sole determinant of entrepreneurial success. Instead, we advocate for greater recognition of the significance of accessing local resources, including market knowledge, social relationships, and institutional support, as fundamental factors driving business development and crisis management within the host country. By recognising and nurturing these local resources, policymakers and support organisations can create an enabling environment that empowers migrant start-ups to thrive, adapt, and contribute to the local EE and economic wealth.

Value propositions in KIBS: How to facilitate the communication of value?

AbstractThis study explores value propositions in knowledge‐intensive business services (KIBS). More specifically, this study investigates how to facilitate the effective communication of value to customers in the KIBS context by employing a qualitative case study method. The findings address the importance of trust in developing a solid client relationship to foster successful collaboration and open communication, thus creating a basis for constructing customer knowledge, and also indicate that the phase and intimacy of the relationship both influence which criteria are emphasised during the purchasing process. Consequently, this study challenges the idea that value propositions are always co‐created at every phase of the KIBS customer relationship, and it distinguishes the factors that facilitate the communication of value in these relationships. The understanding gained through this study offers practical insights and will help KIBS firms successfully communicate value to their clients.

Leveraging on intra- and inter-organizational collaboration in Industry 4.0 adoption for knowledge creation and innovation

PurposeThis paper aims to investigate the impact of Industry 4.0 (I4.0) technologies on knowledge creation for innovation purposes by assessing the relationships among the variety of I4.0 technologies adopted (breadth I4.0), the penetration of these technologies within the firm’s value chain activities (depth I4.0) and the mediating role of both internal (inter-functional (IF)) and external [with knowledge-intensive business services (KIBS)] collaborations in this process.Design/methodology/approachThe study employed a quantitative research design. By administering a survey to entrepreneurs, chief operation officers or managers in charge of the operational and technological processes of Italian manufacturing firms, the authors collected 137 useful questionnaires. To test this study's theoretical framework and hypotheses, the authors ran regression and mediation analyses.FindingsFirst, the results highlight the positive link between breadth I4.0 and depth I4.0. Moreover, the results show the key role played by increased collaboration among the firm’s business functions and by relationships with KIBS in creating knowledge to innovate processes and products when I4.0 technologies are adopted.Research limitations/implicationsThe variety of I4.0 technologies adopted enables a firm to use such technologies in various value chain activities. However, the penetration of I4.0 into the firm’s value chain activities (depth I4.0) does not per se directly imply the production of new knowledge, for which a firm needs internal collaboration among different business functions, in particular with the production area, or collaboration with external partners that favor I4.0 implementation, such as KIBS.Practical implicationsTo achieve innovation goals by creating new knowledge, especially in the manufacturing industries, firms should encourage internal and external collaboration when I4.0 technologies are adopted. Moreover, policy makers should not only consider fiscal incentives for the adoption of such technologies, but also encourage the building of networks between adopting firms and external actors.Originality/valueThe study is one of the first attempt that provides empirical evidence of how I4.0 enables the creation of knowledge to innovate processes and products, highlighting the relevance of collaboration both within the company and with external partners.

A study on the multidimensional result-oriented capability of professional workers

An increasing number of freelancers and independent professionals are engaged in short-term and temporary work. There are several studies that define the key intangible resources and abilities of professional employees but there is limited research that examines all of them collectively. Therefore, the aim of this study is to improve our understanding of professional workers' various intangible resources and capabilities by proposing the result-oriented capability (ROC) construct and its subdimensions by analyzing existing literature on knowledge workers, professional employees, psychology and management. The proposed model was empirically tested using the data gathered from 384 professional workers that worked in knowledge-intensive business services (p-KIBS). Construct reliability and validity are analyzed using the IBM Statistical Package for Social Sciences (SPSS) and the Analysis of Moments Structure (AOMS). This research proposes and confirms that ROC has reflective sub-dimensions such as professional expertise, relational capability, operational capability and innovation orientation. The study's findings provide important insights into how to improve professional workers' capabilities. The new measures can be used as diagnostic tools for professional worker recruitment, assessment and training. This can be beneficial for individual professional workers with larger implications for people management, training and development and organizational success.

Urban restructuring and the location dynamics of P-KIBS in postsocialist Belgrade

ABSTRACT Professional knowledge-intensive business services (P-KIBS) have emerged as one of the core elements of economic recovery and urban restructuring of many large cities during the postsocialist transition in Europe. However, studies about intrametropolitan patterns of P-KIBS in postsocialist cities are largely neglected. Against this backdrop, the aim of this study is to provide a better understanding of P-KIBS intraurban spatial patterns within a postsocialist urban environment by analyzing the location dynamics of P-KIBS in Belgrade. The research methodology includes using a micro-geographic dataset for the period 2011–2019 and distance-based methods, which are becoming increasingly popular in urban geography. The study demonstrates that in Belgrade, P-KIBS are spatially highly concentrated and centralized, with a strong center-periphery gradient as well as pronounced intraurban functional specialization and intrasectoral differences. In the observed period, the spatial reorganization of P-KIBS was characterized by spatially limited decentralization, reflected in the progressive dissolution of the traditional monocentric model and the creation of a centralized duocentric model through the emergence of a secondary CBD in New Belgrade. In particular, the research highlights the influence of the complex process of postsocialist urban restructuring in the shaping of the urban geography of P-KIBS.

Evaluating the Effects of Information Sources on Innovation Outcomes: Are There Differences between KIBS and Manufacturing Firms from a Latin America Country?

AbstractThe aim of this paper is analysing the relationships between sources (internal/external) of information and innovation outcomes (product, service and process) in Peruvian companies. Furthermore, we explore differences and similarities in these relationships when comparing manufacturing firms and knowledge-intensive business services (KIBS) firms. This study presents evidence based on the application of a logit model to a sample of 1141 Peruvian companies, comprising 830 manufacturing firms and 311 KIBS firms. Despite the fact that Peruvian companies do not tend to turn to external sources of information or invest in internal R&D activities, we find positive relationships between sources of information and innovation outcomes in both manufacturing firms and KIBS firms—predominantly process innovation in both cases, followed by product (goods) innovation for manufacturing firms and service innovation for KIBS. Our findings indicate that not all external sources of information have positive effects on product, service and process innovation. Thus, managers should consider proper management of the company’s external relations in order to take advantage of these relationships. Moreover, policymakers should promote interrelationships between the actors in the innovation system (e.g., companies, research centres, universities, etc.) thereby generating opportunities for innovation. This paper provides evidence that the configuration of sources of information (especially internal R&D) plays a significant role in innovation outcomes in both manufacturing firms and KIBS firms, specifically in the context of Latin American countries.

The “Double-Edged Sword” Effect of Personal Relationships between Boundary Personnel on Enterprise Opportunistic Behavior in Cooperative Innovation

In collaborative innovation, personal relationships between boundary personnel of knowledge-intensive business service (KIBS) enterprises and organizational customers have a “double-edged sword” effect on inter-organizational relations. This study adopts the empirical research method based on KIBS enterprises’ cooperative innovation projects with organizational customers in China. Based on the theory of the inter-organizational relationship, this study explores the influence of personal relationships between employees at the boundary of enterprises on organizational customers’ opportunistic behavior. It analyzes the mediating effect of relationship governance and contract governance. The results show that personal relationships between boundary personnel will improve the probability of corporate customer opportunism. The relationship between governance and contract governance for enterprises can effectively restrain the opportunistic behavior of organizational customers. Further, the personal relationships between boundary personnel will enhance the relationship norms and inhibit the opportunistic behavior of organizational customers, and relationship governance plays a partial intermediary role in this. The personal relationships between employees at an enterprise’s boundary will relax the contract’s supervision and encourage corporate customer opportunism. Contract governance plays a partial intermediary role in this.