Knowledge-intensive Business Services Research Articles

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.

Knowledge creation and knowledge transfer: an perspective under the kibs vision for evaluating the innovative capacity

Introduction: The knowledge creation and knowledge transfer constitute the field of interdisciplinary nature whose scientific configuration has been consolidating in the international scope from its relation with the Knowledge Intensive Business Services – KIBS. Objective: Explain how the elements of a conceptual model based on KIBS (Knowledge Intensive Business Services) can be applied in an integrated way to assess the innovative capacity of firms in the service sector. Methodology: The building of the model is based on a bibliometric analysis of the central theme KIBS, in the databases Scopus and ISI Web of Knowledge (Web of Science). Results: In this study, it can be seen that during the seventeen years of research, the authors did not investigate the relationship between KIBS and the evaluation of the innovative capacity of firms in the service sector. Conclusion: The greater concentration of the analyzed papers investigates the attributes and roles of KIBS for innovation. It's an opportunity to assess the innovative capacity of KIBS in the service sector.

Regional labour flows between manufacturing and business services: Reciprocal integration and uneven geography

This article uses Statistics Sweden’s full-population geo-coded register data for Swedish workers and their labour market moves, between 2010 and 2014, to analyse regional flow patterns of employees between manufacturing, general business services and knowledge-intensive business services (KIBS). The findings generally show that labour flows between manufacturing and services have important bi-directional features, even with manufacturing generally declining. There is no staff exodus from manufacturing to services, but rather an exchange suggesting skill interdependencies, especially between high-tech manufacturing and KIBS. However, there are strong geographical dimensions to this, emphasising a reinforcement of the spatial division of labour patterns. In trend terms, the decline of manufacturing is rather similar across all regional types; however, business services are growing much faster in metropolitan regions. The labour flow between manufacturing and KIBS is more likely in metropolitan regions, but far more often additionally involves geographical mobility, either between or towards the metropolitan regions. Thus, the major challenge facing less dense and peripheral regions is not necessarily the decline of manufacturing per se, but that (a) the low levels of transition into business services are insufficient to make up for employment losses in manufacturing and (b) the fact that there is considerable out-migration of experienced and skilled workers from manufacturing, who are joining the growing numbers of business services in metropolitan regions.

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.

L'innovation dans les services à forte intensité de connaissances (SFIC)†

AbstractThis article examines the determinants of innovation in knowledge intensive business services (KIBS), generally hypothesizing that differences in the effect of the determinants of innovation depend on the type of innovation developed within KIBS. The study results are based on estimates of two econometric models using data from a survey of 392 firms in the province of Ontario, Canada.

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.

Innovation in Knowledge Intensive Business Services (KIBS)

AbstractThis article examines the determinants of innovation in knowledge intensive business services (KIBS), generally hypothesizing that differences in the effect of the determinants of innovation depend on the type of innovation developed within KIBS. The study results are based on estimates of two econometric models using data from a survey of 392 firms in the province of Ontario, Canada. © 2019 ASAC. Published by John Wiley & Sons, Ltd.

Internal barriers to innovation and university-industry cooperation among technology-based SMEs in Brazil

ABSTRACTThis paper investigates the association between internal barriers to innovation and the propensity of technology-based SMEs to cooperate with universities and research institutes (URIs). We examine empirically two types of internal company barriers – financial and knowledge obstacles to innovation. The data source is the latest edition of the Brazilian Innovation Survey (PINTEC). We analyse the full sample of technology-based SMEs as well as the subsamples of high-tech manufacturing companies and knowledge-intensive business services (KIBS). Financial obstacles are shown to be strongly related to the propensity of KIBS to collaborate with URIs. Knowledge obstacles are moderately related to the propensity of high-tech manufacturing SMEs to collaborate with URIs. We conclude that while URIs have other important roles in the techno-economic system, their perceived contribution to alleviating internal innovation barriers for technology-based SMEs may be less prominent than policy decision-makers in emerging economies may expect.

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.

Drivers for innovation in KIBS: evidence from Russia

ABSTRACT Knowledge-intensive business services (KIBS) significantly contribute to the economic growth and competitive advantage of emerging markets, including Silk Road countries. KIBS are not only intermediaries that transfer knowledge through the economy but are also innovators themselves. This paper aims to explore how major innovation drivers influence the implementation of innovation in KIBS. Using a sample of 519 KIBS enterprises from Russia, the results show that human capital increases the implementation of technological innovation, while the link between standardisation and technological innovations is non-linear (an inverted U-shaped). In addition, the multiregional branch network promotes the implementation of all types of innovation, while advertising investments enhance the implementation of technological and marketing ones. These results help to provide some practical suggestions for both innovation managers and policy-makers.

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.

Does public entrepreneurial financing contribute to territorial servitization in manufacturing and KIBS in the United States?

ABSTRACTThis study uses territorial innovation theory and research advances on territorial servitization to examine the effect of public financing on firm survival and performance in two critical sectors in the United States. The goal is to inform servitization efforts on the effect of public entrepreneurial financing to support the renaissance of manufacturing and the ever-growing knowledge-intensive business services (KIBS) sector. Results indicate that public start-up and expansion capital, as government loans and guaranteed loans, decrease firm survival in the KIBS sector and firm receipts in both sectors, when compared with private sources of capital. In sensitivity analyses, no effect is observed for government grants.

Conditions for Innovation in KIBS: Evidence from Russia

The development of service industries in emerging economies has been attracting more attention in recent years, but to date there have been few studies of knowledge-intensive business services (KIBS) in these countries. (The main exception is the case of a specific sector – software and related Information Technology services, with most focus here being on India. KIBS as a whole have received little examination.) This paper aims to study how conditions for innovation influence innovation activities in KIBS in one of the largest emerging countries, Russia. The study draws on survey data from firms belonging to ten KIBS subsectors, based in major Russian cities in 2015. The results contrast with those generally reported in Western developed economies. In this particular emerging economy, firms experiencing negative market and knowledge conditions are actually more liable to undertake nontechnological innovations. We consider various explanations for this apparent anomaly. The institutional framework appears to be less essential for KIBS than has been earlier documented for manufacturing enterprises in Russia. Implications for innovation management and policy are outlined: both government and corporate, strategies here would benefit from more attention to these sectors.

The role of knowledge intensive business services in economic development: a bibliometric analysis from Bradford, Lotka and Zipf laws

Abstract The international scientific community considers Knowledge Intensive Business Services (KIBS) as one of the main themes related to innovation and economic development. This article presents a review based on Scopus and ISI Web of Knowledge databases, on the KIBS topic in the world, considering the period 2000-2017. The study aimed to understand the role of KIBS in regional development, and they were considered in their roles as innovations’ attributes and resources, methodologies and tools for innovation management, transfer, knowledge diffusion and networks. They concentrate in the areas of business, management and economics, developing approaches to seek innovation, competitiveness and economic development.

Impact of Digitalization on Service Work in Knowledge-Intensive Business Services: An Empirical Study in Tax Consultancies

Digitalization is a megatrend, but there is relatively little knowledge about its consequences for service work in general and specifically in knowledge-intensive business services (KIBS). We studied the impact of digitalization on psychological consequences for employees in tax consultancies as a special case of KIBS. We compare two tax consulting jobs with very different job demands, those of tax consultants (TCs) and assistant tax consultants (ATCs). The results show that the extent of digitalization at the workplace level for ATCs correlates significantly positively with their job satisfaction. For TCs, the same variable correlates positively with their work engagement. These positive effects of digitalization are mediated in the case of ATCs by the impact on important job characteristics. In the case of TCs, which already have very good working conditions, the impact is mediated by the positive effect on self-efficacy. Theoretical and practical consequences of these results are discussed.

The knowledge intensity and the economic performance in Taiwan’s knowledge intensity business services

The service sector plays a key role to employment growth and increased public well-being in OECD countries. The service industries contributed more than 63% of GDP in 2016 and have become the core of economy in Taiwan. Within the service sectors, knowledge-intensive business services (KIBS) particularly illustrate higher levels of productivity and profitability. Moreover, due to lack of the clear measurements of the knowledge intensity with prior investigations in KIBS, the aim of this article is to explore the knowledge intensity of Taiwan’s KIBS. This study then further probes into the relationship between knowledge intensity and economic performance. Panel data from 13 service sectors in Taiwan during the period 2007–2015 is analysed with a fixed effect model. This empirical research shows four findings: first, 13 industries are classified into three groups as high, low, and no level of knowledge intensity; second, most of the level of knowledge intensity has been increased from stage one to stage two; third, education level and vocational training rate positively influence productivity; and, finally, the percentage of knowledge workers and vocational training rate have a positive effect on the margin rate.

Revisiting the Natural Resource ‘Curse’ in the Context of Trade in Value Added: Enclave or High-Development Backward Linkages?

This paper puts forward and empirically tests the conjecture that specialisation in Natural Resource Industries (NRI) might not necessarily be a ‘curse’ for (developing) countries, if it provides opportunities for export diversification in backward linked sectors a la Hirschman. We first revisit the evolution of the debate around the NRI ‘curse’, including those from scholars sceptical of diversification based on beneficiation from NRI. We then empirically test whether NRI might represent a sufficient “domestic representative demand” a la Linder for backward linked sectors such as Knowledge Intensive Business Services (KIBS) or high tech manufacturing that might provide new opportunities for export diversification led by virtuous pathways of domestic structural change. We find empirical support for this conjecture and discuss some implications that revisit the NRI curse debate.

Innovation management in consulting firms: Identifying innovation processes, capabilities, and dimensions

Consulting firms are considered part of knowledge-intensive business services, in which expert knowledge plays a crucial input in the provision of service. Using a multi-case study, this study aims to improve understanding of how consulting firms strategically manage innovation processes and which capabilities and dimensions they focus on to deliver innovation, based on interaction among the main actors from both an internal and external perspective. Consulting firms tend to simplify reality, but several innovation processes take place at the same time. Results show that these views are not mutually exclusive; on the contrary, many of them coexist over the lifecycle of the firm and its particular business conditions. The challenge for innovation in consulting firms is achieving a balance between generating incremental change by exploiting current knowledge and creating radical innovations by exploring new ideas at the same time.

The innovativeness of Knowledge-Intensive Business Services in the context of market needs

The innovativeness of Knowledge-Intensive Business Services in the context of market needs

Türkiye'de Bilgi Yoğun İş Hizmetlerinin (BYİH) Bölgesel Uzmanlaşma Örüntüsü

Bilgi Yoğun İş Hizmetleri (BYİH), ekonomik kalkınma ve yenilikçiliğinin önemli itici gücü olarak algılanmaktadır. BYİH genel olarak, ekonomik güç, bilgi üretimi ve bilgi transferi ile ilgili olarak bölgesel ve ulusal ölçekte kalkınmanın en önemli alanlarından biridir ve bu nedenle BYİH'nin coğrafi yoğunluğunun bölgeler açısından kritik bir faktör olması beklenmektedir. Bu makale, bilgi-yoğun iş hizmetleri faaliyetleri kavramını tanıtmayı ve bölgesel kalkınmada BYİH'nin rolünü, özellikle bölgesel uzmanlaşma açısından incelemeyi amaçlamaktadır. Bu amaçla detaylı sektör verilerinden yararlanılmıştır. BYİH faaliyetleri üretici hizmetlerin bir alt dalı olarak görülmekte ve 10 alt sektörde tanımlanmaktadır. Bu 10 alt sektör, Türkiye İstatistik Kurumu (TÜİK)'ndan alınan 2009 ve 2015 yıllarına ait işyeri ve istihdam sayısı ile ciro verilerine göre analiz edilmektedir. Bu analizler Türkiye'deki 26 adet Düzey-2 bölgesi üzerinden yapılmıştır. Analiz için yerelleşme katsayısı (LQ) tekniği kullanılmaktadır. Sonuçlar, telekomünikasyon sektörü dışında tüm BYİH sektörlerinin büyük şehirlerde uzmanlaştığını göstermektedir. BYİH'nin bölgesel uzmanlaşma örüntüsünü ortaya koymak, bölgesel planlara ve politika yapıcılara yol göstermesi açısından önem taşımaktadır.