Knowledge-intensive Firms Research Articles

Organizational learning: a road map to evaluate learning outcomes in knowledge intensive firms

Purpose – The purpose of this paper is to identify and measure the organizational learning outcomes in a sample of knowledge-intensive firms like software companies. Design/methodology/approach – The sample chosen for this study comprised software professionals; the software companies were chosen based on the listing in the National Association of Software and Services Companies annual report with financial turnover as a base for classification. The learning outcomes discussed in this study are grounded on the dimensions of the building blocks of learning organization, which are classified as learning dynamics, organization transformation, knowledge management, people empowerment and technology application. Findings – Statistical analysis revealed significant differences in learning outcomes based on the organization’s age. The organizational learning orientation for medium- and very large-scale companies are on the higher side with reduced organization hierarchy; better technology-based learning; structured knowledge management practices; learning-centric talent acquisition, talent management and total rewards. Small-scale companies fared well in organization transformation dimension and large-scale companies constantly nurture the congenial learning environment. Practical implications – The tool can help knowledge-intensive firms to analyze the extent to which organizational practices aligned with learning initiatives are visibly seen in terms of learning outcomes. Thus, the learning culture can be articulated and associated with the growing needs of an organization. Originality/value – Organizational learning initiatives can be enhanced and reinforced through customized organization practices by observing the measures of learning dimensions.

Special issue of International Journal of Human Resource Management: Leadership in global knowledge-intensive firms

Special issue of International Journal of Human Resource Management: Leadership in global knowledge-intensive firms

The interplay between formal project memberships and informal advice seeking in knowledge-intensive firms: A multilevel network approach

In this study we investigate the interplay between knowledge workers’ formal project team memberships and their informal interactions from a multilevel network perspective. Conceptualizing knowledge workers’ affiliation with project teams as a membership network and their interactions as an advice network, we discuss how shared project team memberships as well as multiple memberships influence patterns of informal exchange in knowledge-intensive organizations. To empirically determine the impact of formal organization on informal exchange we apply exponential random graph models for multilevel networks to relational data collected on 434 R&D employees working on 218 project teams in a high-tech firm in Germany. Our results show that employees sharing project memberships create advice ties to each other but do not exchange advice reciprocally. In addition, we find a negative relationship between having a high number of project memberships and informally seeking or providing advice.

Measuring the Impact of Learning Organization on Job Satisfaction and Individual Performance in Greek Advertising Sector

Abstract Fierce competition, rapid evolution of information technology, economic uncertainty and ceaselessly shifting consumer trends, have brought about for contemporary business world a new era where the major source of competitiveness lies in a company's ability to transform into a learning organization, an organization which constantly generates, diffuses and integrates new knowledge. This assertion is even more critical for advertising companies, typical examples of Knowledge Intensive Firms (KIFs), for which ideas and knowledge constitute the key production resources. Due to dramatic decline in Greek firms’ profitability in the last seven years, these companies are required to enhance both individual and organizational performance by promoting knowledge-based work and highly focusing on their workforce constant learning advancement. This paper explores the pattern of learning organization in association with two principal work outcomes, job satisfaction and job performance. A questionnaire survey has been conducted, based on a sample of 251 staff members who are employed by 49 advertising agencies. Findings have brought to light that learning-oriented operation is a crucial predictor of both employee job satisfaction and individual performance, while job satisfaction proved to be a mediator of the relationship between learning organization and job performance. Conclusions have been drawn and practical implications have been suggested.

Broadband Provision and Knowledge-Intensive Firms: A Causal Relationship?

Tranos E. and Mack E. A. Broadband provision and knowledge-intensive firms: a causal relationship?, Regional Studies. Despite the discussions about the importance of the digital economy, we are still far from understanding how information and communication technologies (ICTs) affect economic activity in space. Recent studies have started untangling the spatial economic impact of ICTs, highlighting the potential use of ICTs as a local development tool. This paper contributes to this domain by exploring whether broadband Internet provision can act as an attractor for knowledge-intensive business services in the United States. Using Granger causality tests, this paper addresses the simultaneity issue between broadband Internet demand and supply at the very detailed spatial level of US counties.

Entrepreneurial skills or reward for success? Does entrepreneurship pay in future paid employment?

In this paper we look at individuals who exit entrepreneurship for paid employment. We ask whether they experience mean (median) positive differentials in remuneration in paid employment compared to individuals who did not experience entrepreneurship. We find positive mean (median) differentials. These are smaller (and more variable) for former entrepreneurs in knowledge intensive firms. We also find that, while employees in knowledge intensive firms earn significantly higher remunerations in general, former entrepreneurs in knowledge intensive firms will experience reduced remunerations differentials with respect to former entrepreneurs in less knowledge intensive firms. Finally, we find that firm performance of the former entrepreneur is a strong predictor of remuneration in subsequent paid employment.

Power and Control in Knowledge-Intensive Firms: Post-Bureaucratic Firms and Enterprise Culture

This paper discusses the notions of “entrepreneurialism” and enterprising culture. In particular, it examines the significance of such discourses on the contemporary workplace and consequent impact on the individual worker’s identity and behaviour. Previous studies on Knowledge-Intensive Firms suggest that organisations are not entirely synonymous with post bureaucratic organisations, but mainly overlap it. It is revealed that majority of firms rely on “cultural or professional forms of control”. These forms of control are regarded to have dependence on an ideology of entrepreneurialism and enterprising culture. Thus, the issues of power relations and discourses in Knowledge-Intensive firms are primarily investigated in this study to expose and understand how the drive by organisations for the “enterprising” individual produces a worker who is self-regulating and self-disciplined. The paper includes an assessment of discourses from various organisational actors to shed light on the roles played by “an enterprise” as a principle of control or government in creating autonomous and productive subjects in the workplace and wider society.

AMO framework and psychological empowerment: Conceptual model decoding the black box between HRM and innovative work behavior

Firms operate in an environment which is influenced by external forces like, government, professional associations, the competitors and other similar organizations operating in the organizational field (Dimaggio & Powell, 1983); knowledge intensive firms, are no exceptions. Purpose of this article is to devise comprehensive conceptual and statistical models for opening the black-box between high-involvement HR practices and innovative work behavior of employees working in knowledge intensive companies. The article explains the Ability-Motivation-Opportunity framework as the generating mechanism through which HR practices affect innovative work behavior through psychological empowerment and supportive work environment. Propositions are developed for future research endeavors, in order to substantiate and validate the proposed models.

Knowledge-Intensive Firms Performance: A Multilevel Analysis of the Functional Domain of Experience

Knowledge intensive firms have long relied on their employees work experience as a driver of their competitiveness. Research shows that individual’s work experience is critical for the development ...

A Qualitative Study of Fulfilled Psychological Contracts in Two Small Knowledge Intensive Firms

This article aims to study situations of psychological contract fulfilment in which breach is conspicuous by its absence. By exploring fulfilled psychological contracts, we attempt to illuminate th...

When the Oryx takes off: Doha a new rising knowledge hub in the Gulf region?

With accelerating pace in the past years, Qatar has strategically pushed forward its economic diversification. According to Qatar's long-term development vision, the knowledge-economy is taking a key role within this economic diversification process and the transformation of its capital into a regional as well as global service-hub. This paper aims at identifying emerging knowledge-based patterns that drive the Qatari space economy. We apply a research concept that brings together two different scientific angles: relational economic geography and physical urban development aspects. The results indicate first a subsidiary role for the Qatari knowledge intensive firms within the Gulf region; second their predominant connectivity patterns to Europe and South-East Asia; third as a distinct lack of urban amenities and qualities for knowledge workers.

The re-regulation of control in the context of project-based work

In recent years project-based work appeared the key for the management of knowledge-intensive firms. Project-based work entails that traditional control systems be transformed in order to unleash the autonomy of qualified and capable workers. Thus the way in which control systems are being re-regulated requires critical research. Based on a case study involving a development team working within a firm in the video game industry we focus on control practices and draw the outline of a framework for the analysis of control.

R&D and Licensing Strategies: Do They Influence US Start-Upss Growth?

The paper analyses the theoretical background regarding R&D and licensing strategies as determinants of firm growth, especially that of start-ups. Summarizing the set of studies relating firms’ R&D intensity to growth, we conclude these studies reveal three approaches that complement each other and are crucial in explaining firms’ performance, namely firms’ investment in R&D activities and in pursuing a corporate R&D strategy, the resource-based view and firms’ innovativeness, either in processes or products, following patenting and exploitation strategies, by using for instance licensing agreements. This paper differs significantly from previous studies in one aspect. It analyses corporate R&D strategy factors (such as R&D intensity, patent portfolio, and licensing strategies, e.g. in-licensing and out-licensing of Intellectual Property (IP) Rights) that are directly connected to start-up growth. The topic of licensing strategies is explored concerning the R&D strategic positioning of start-ups, which is an additional caveat found in the existent literature. Therefore, start-ups should make an economic analysis of licensing strategies and activities, in order to define the best possible IP management. The paper estimates the effects of US start-ups’ R&D and licensing strategies on their growth, based on R&D intensity, start-ups’ patents and in-licensing and out-licensing activities. The sample of the study consists of all firms (818) found in the Kauffman Foundation Survey (KFS) from high-tech and medium high-tech sectors, in the period 2004-2010. In this survey we found three high-tech sectors, 32 (manufacture of radio, television and communication equipment and apparatus) and 33 (manufacture of medical, precision and optical instruments, watches and clocks) for manufacturing firms and 72 (computer and related activities) for knowledge-intensive service firms and 1 medium high-tech sector, namely 31 (manufacture of electric machinery and apparatus).

Surviving downsizing and innovative behaviors: a matter of organizational commitment

Purpose– The purpose of this paper is to analyse the simultaneous effects of perceived job insecurity and organizational commitment on the innovative behavior of workers in an announced downsizing environment.Design/methodology/approach– The authors suggest and empirically test a model using the case of a firm, an innovative high technology firm, in a downsizing process.Findings– The results show an indirect effect of job insecurity on innovative behavior, through organizational commitment.Research limitations/implications– First, the paper only examined one firm. Although the firm is a large multinational firm it may have a specific organizational culture and a track record that generates some idiosyncratic feelings in face of downsizing. Second, the context of knowledge-intensive firms limits the scope of the study, although it is reasonable to suggest that these firms are more dependent on employees’ innovative efforts for competitive advantage.Practical implications– This study is a contribution to the HRM practitioners in a tense and delicate worldwide restructuring situation. The outcomes experienced by those who remain – the survivors – are important for the future competitive capabilities of firms post-downsizing.Social implications– Thus, it seems that organizational commitment directly and positively determines workers’ innovative behavior and that organizational commitment is impacted by job insecurity in an announced downsizing environment. It is, essentially, an affective commitment and job insecurity is more affected by a perceived threat to one’s total job.Originality/value– A downsizing strategy warrants that the full impact on firms’ ability to innovate be assessed.

Learning Organization in Greek Advertising and Media Industry: A Way to Face Crisis and Gain Sustainable Competitive Advantage

Vicious competition and financial instability combined with rapid technological evolution and ceaselessly diversifying consumer trends are increasingly intensifying the need for contemporary organizations to continuously seek new sources of competitive advantage in their volatile operating environment. The fundamental source of sustainable competitiveness for the company of the 21st century, is its ability to constantly generate, diffuse and integrate new knowledge, and thus, to transform into learning organization. This organizational ability appears rather important in case of Knowledge Intensive Firms (KIFs), such as advertising and media companies. Due to dramatic decrease in Greek firms profitability caused by the financial recession in the last five years, these companies are required to improve their performance through more learning- and innovation-oriented initiatives.This paper explores the pattern of learning organization as well as its association with organizational performance. A questionnaire survey has been carried out, based on a sample of 330 upper level staff members who are at the helm of 163 Greek advertising and media companies. Findings have brought to light that learning-oriented operation strengthens a company's capacity for improvement through development and innovation, increases effectiveness of organizational processes, enhances relationships with customers, and finally, elevates financial performance. Conclusions have been drawn; recommendations and directions for further inquiry have been provided.

Networks in knowledge-intensive industry: the case of a regional accountants' network

Purpose – The paper aims to explore the reasons behind the formation of a regional accountants' network located in North Queensland, Australia, and examine in depth how relationships are constituted and maintained between the network members. The study also looks at the benefits arising from the network, structural constraints and the reasons behind its demise. Design/methodology/approach – This study adopts a more contemporary theoretical perspective which draws upon the notion of social capital that facilitates networks' capacity and capabilities for creating, sharing and accessing knowledge. This field study considers the specific case of the Cairns Regional Accountants' Forum (CRAF), a network of small and medium sized public accounting firms located far away from the metropolitan centres in Australia. Apart from the relevant archival data, senior partners/principals of 12 accounting firms were interviewed in a semi-structured manner. Three further interviews were held with the non-active members of the CRAF and telephone calls were made to the Regional Tax Practitioner Forum to discuss their involvement with the local accountants. Findings – Using the framework of social capital within the community of practice, this study has explored the use of informal regional network built by accounting principals for the efficient transfer of and access to knowledge between network members. When the knowledge became freely available, the cost of network building exceeded the benefits of belonging and the network collapsed. Practical implications – The paper has practical implications for accounting practitioners, particularly in regional/rural settings and for the accounting profession as a whole. Originality/value – First, very little is known about informal networks in knowledge-intensive firms stretched out in regional/rural settings. Second, the network in this study is different from many networks identified in the literature that have focused on innovation and competitive advantage. Finally, this study adopts a more integrated framework that explores how social capital is constituted and reconstituted in the network interaction process.

How university and industry knowledge interact to determine local entrepreneurship

This article discusses and empirically investigates whether and how university knowledge and industry knowledge interact to determine the creation of knowledge-intensive firms (KIFs) in a geographic area. In line with the knowledge spillover theory of entrepreneurship (KSTE), we find that both knowledge types matter for stimulating local entrepreneurship. However, our findings document that university knowledge exerts an effect just in areas where industry knowledge is low. In other words, the two types of knowledge do not generate synergetic gains, but are substitutes.

The Role of Partnerships in the Internationalisation Process of Small Knowledge Intensive Firms (SKIFs)

There is important evidence that Small Knowledge Intensive Firms (SKIFs) have demonstrated some unique characteristics in their internationalisation process. The process takes place earlier in the life of the firm and develops due to the role played by partnerships. The paper analyzes three different SKIFs through a cross case study method. We build on different process based models that have studied the internationalisation process of international ventures. The findings show that the SKIFs internationalisation consists of a series of phases characterised by triggering factors. The paper sheds new light into which type of partnerships mostly matter in the growth of SKIFs.

The impact of local and external university knowledge on the creation of knowledge-intensive firms: evidence from the Italian case

This paper investigates how far in space university knowledge goes to breed the creation of knowledge-intensive firms (KIFs), depending on the nature (either codified or tacit) and quality of this knowledge. We consider the impact of knowledge codified in academic patents and scientific publications and tacit knowledge embodied in university graduates on KIF creation in Italian provinces in 2010, while distinguishing between local university knowledge created by universities located in the same province and external university knowledge created by universities located outside the province. Our econometric estimates indicate that the positive effects of scientific publications and university graduates are confined within the boundaries of the province in which universities are located. Conversely, the creation of new KIFs in a focal province is positively affected by both local and external university knowledge codified in academic patents, even though the positive effect of this external knowledge rapidly diminishes with geographic distance. Furthermore, the above effects are confined to high-quality universities; low-quality universities have little effect on KIF creation.

Profiling human resource management practices in innovative firms

It has been argued that different bundles or configurations of human resource practices can improve innovation performance, but there is little empirically-based research that provides details of the practices utilised by different types of innovative firms. This study aimed to identify how different types of firms vary their human resource management (HRM) practices to build organisation-specific innovation capabilities. The paper presents findings from a qualitative study of 26 innovative Danish firms categorised as technology-based, knowledge-intensive, or hybrid in their industry orientation. The findings highlight that knowledge-intensive firms have notably different profiles of HRM practices to technology-based firms, suggesting that firms utilise different practices to build innovation capacity depending on the core capabilities required for success in their respective industries. This paper contributes by demonstrating how HRM practices differ across types of firms rather than relying on a universal perspective or 'one best way' to design and implement HR practices.