Knowledge-intensive Services Research Articles

Fostering open innovation in SMEs: the crucial role of high-performance working systems and the mediating influence of innovative work behaviour

Purpose Owing to the growing importance of human resource practices (HRM) and open innovation (OI) in small and medium enterprises (SMEs) context, the purpose of this paper is to investigate the effect of high-performance working systems (HPWS) on inbound and outbound open innovation in SMEs through the mediating role of innovative work behaviour (IWB). Using ability-enhancing, motivation-enhancing and opportunity-enhancing (AMO) framework, this study investigates the direct and i.ndirect effects of HPWS AMO practices and SMEs open innovation through the mediation effects of IWB. Design/methodology/approach This study employed a random sampling method to collect data by surveying 208 participants from SMEs in high-tech manufacturing and knowledge-intensive service sectors. Partial least squares-structural equation modelling is employed to analyse the interrelationships between constructs. Findings The results show that ability-enhancing practices are critical HRM practices that directly influence SMEs inbound and outbound; IWB is positively and significantly related to OI approaches; IWB partially mediates the relations between AMO HPWS and inbound and outbound open innovation. Practical implications The effects of HPWS practices are important in fostering OI in SMEs operating in Czech Republic. In addition, IWB is a partial intermediation that strengthens the relation between AMO HPWS and inbound and outbound OI. Originality/value This study adds to our understanding of the direct and indirect interactions between HPWS practices, IWB and inbound and outbound open innovation in high-tech manufacturing and knowledge-intensive service SMEs in Czech Republic.

Analysing the interplay of regional economic structures and COVID-19's impact on Irish regions

ABSTRACT This paper analyses the regional economic impacts of COVID-19 in Ireland. The results show regional labour market impacts were related to pre-existing economic structures rather than infection rates. Drivers of the employment shock were found to be regional specialisms in tourism focused sectors. Cushions were provided by regional specialisms in agriculture, healthcare and the knowledge intensive service sectors. For more rural regions that appeared more resilient to the labour market shock, cushions were likely provided by employment in slower growth potential sectors. During the recovery phase, these cushions can become anchors contributing to regional divergence. Consequently, some regions less severely impacted by the pandemic shock may, in fact, face more difficult structural challenges in the longer term. The pandemic has thus exacerbated pre-existing structural issues that are likely related to the observed regional economic divergence and findings of regional development traps since the recovery from the previous recessionary period of the 2010s. The broad implication is that that the regional recovery from the pandemic will not be based purely on short term COVID-19 exposure. In general terms, regional policy should look beyond the initial pandemic shocks to the key underlying development issues. A central point here is that there are no quick transformational fixes rather long-term structural imbalances need to be met. The key policy challenge, in the Irish case, is to avoid the trend from the previous economic crisis of regional divergence during the recovery phase.

Knowledge-oriented leadership and business performance: the mediating role of intellectual capital and sustainable competitive advantage in the knowledge-intensive service industry

Purpose The purpose of this study is to examine the relationship between knowledge-oriented leadership (KOL) and business performance (BP) in a knowledge-intensive industry and further investigate, heretofore neglected, a mediating effect of intellectual capital and sustainable competitive advantage in the relationship between KOL and BP.Design/methodology/approach A quantitative approach was adopted to conduct the present study. Data were collected from the full-service branches of private banks in Tehran, Iran. A confirmatory factor analysis was conducted to ascertain the validity and reliability of the observed items, and a structural equation model was employed for testing the proposed hypotheses.Findings The findings revealed that both intellectual capital and sustainable competitive advantage fully mediate the influence of KOL on branch performance.Research limitations/implications The study was conducted in the banking sector in Iran. Therefore, our conclusions may not be applicable to other countries. Future studies should be carried out with samples from other contexts. Moreover, as the study was cross-sectional, the causal relationships could not be inferred directly.Practical implications In this study, we found that knowledge-oriented leaders should increase their investment in intellectual capital to gain competitive advantage and improve branch performance.Originality/value This study contributes to advanced research on KOL by trying to explain how intellectual capital and sustainable competitive advantage can influence the relationship between KOL and BP in a knowledge-intensive service industry.

The effects of COVID-19 on the agglomeration of high-tech knowledge-intensive business services in Ankara, Istanbul, and Izmir

This study investigates the effect of COVID-19 on the concentration and agglomeration of jobs related to high-tech knowledge-intensive services (HKIS). The main objective of the study is to determine how COVID-19 measures have changed the HKIS agglomeration in three major metropolitan cities of Türkiye—Ankara, Istanbul, and Izmir. Data from 2019 were used as the pre-COVID-19 period, from 2020 as the COVID-19 period, and from 2021 as the post-COVID-19 period, and the agglomeration was calculated using the location quotient. Of the number of HKIS employees in Türkiye, 71.65% worked in Ankara, Istanbul, and Izmir in 2019, but during the COVID-19 period (2020) when the pandemic measures were implemented, the proportion increased to 79%. During the post-COVID-19 period (2021), the percentage of HKIS workers in Türkiye was 78.68%. The observations suggest that the agglomeration of HKIS activities in these three cities continued to increase after the COVID-19 pandemic measures were implemented and removed.

Strategy-as-practice in Irish construction professional service firms (PSFs)

Much has been said around the dynamics/process of competition and gaining business advantage within the construction sector, however, much less investigation has gone into the practice-based elements of firms in the construction sector, particularly high knowledge intensive professional service firms(PSFs). The strategy-as-practice viewpoint is one of the most recent approaches to strategic management, which focuses on the people, practices and praxis elements of organisations. There is a lack of research on people within the construction industry who are the link between strategy practice (social, symbolic, and material tools and processes) and praxis (how strategic activity is accomplished). These people form the critical link between organizational and extra-organizational levels, making them a critical element in strategic analysis. The realization of strategic goals depends on these people, and for the strategy to be effective within construction organizations, it needs to be properly interpreted in the organizational context by these people. This study presents a unique strategy-as-practice lens of construction professional service firms (architectural, engineering, and surveying consultancies) using a sample of 27 Irish firms. The findings advance knowledge on the who (people) is involved in strategy within PSFs, what they engage in for strategizing (practices) and how they achieve the same (praxis).

Digital servitization strategies and business model innovation: The role of knowledge-intensive business services

Several studies on digital servitization strategies highlight that their implementation is closely associated with some form of business model innovation. In order to engage in these innovation projects, firms need to expand their internal knowledge and skills while leveraging external organizations that support them in their servitization journey. To date, little is known about the intra-organizational factors accounting for the activation of new relationships with such knowledge-intensive service providers. This paper adopts a configurational approach for investigating the role of knowledge-intensive relationships in digital servitization strategies. Findings are founded on a multi-method investigation based on a structured survey and semi-structured interviews to Italian B2B manufacturers. The study contributes to the digital servitization literature showing the conditions that lead firms to develop relationships with different types of external providers of knowledge-intensive services, highlighting the role of firm’s size, digital readiness, internal commitment, and specific hiring programs in digital servitization paths.

Design Principles for Virtual Reality Applications Used in Collaborative Service Encounters

Immersive technologies like virtual reality (VR) provide new opportunities to augment service encounters by supporting customer–service agent collaboration and problem-solving. Guided by the value cocreation and service technology infusion literature, a design science research (DSR) study is carried out with three iteratively developed versions of a VR application used to make decisions about forest management services. The aim is to develop design principles (DPs) for physical VR technology-infused service encounters. DSR produces unique knowledge on how a VR solution affects customer–service agent collaboration. In each development cycle, the problem–solution fit is evaluated, and emerging problems are addressed in the following DSR cycles. Based on interviews ( N = 127) with customers and service agents of a forest management service company conducted during the DSR cycles, we show that VR technology solutions support collaboration and problem-solving in knowledge-intensive service encounters by invoking dialogue difficult to generate otherwise—especially when decision-makers are novices and service outcomes are physical and irreversible. We present three new DPs that help conceptualize how collaborative service encounters can be improved by using a developing VR technology: (1) the principle of empowerment, (2) the principle of focus, and (3) the principle of guided decision-making.

Macroeconomic determinants of enterprise births in European countries: The moderating role of human capital in the unemployment structure

Research background: While micro-level studies evidence that unemployment increases the probability of being self-employed, the findings at the macro-scale are ambiguous. At the macroscale, the unemployment push mechanism is further conditioned by cyclical fluctuations and industry-specific characteristics. Most studies, however, have neglected the heterogeneity of the group of unemployed, which could also be behind the disparate results. Purpose of the article: In filling this gap, the study aims to examine the links between the unemployment rate and enterprise births, while considering the unemployment structure in terms of the human capital of the unemployed and the unemployment duration. Methods: The issue is examined using the example of 20 European countries in the period 2004–2020. The fixed- and random-effects panel models were applied. The sectoral diversity of entrepreneurial activity (manufacturing, wholesaling and retailing, professional and scientific activities, ICT), and the size class of the newly established enterprises (with/without employees) are also considered. Findings & value added: The study reveals that the share of long-term unemployment and the skill structure of the unemployed have an impact on new firm formation, which varies with the knowledge intensity of the start-ups and their size. A higher share of highly qualified unemployed increases the start-up rates, particularly in knowledge-intensive services and manufacturing. A higher share of long-term unemployed has a negative impact on enterprise births, specifically in new businesses with employees. The findings are important for designing effective instruments to address unemployment by entrepreneurship within active labour market policy.

An intersectional perspective on the impacts and responses of entrepreneurs during the COVID-19 pandemic in Germany

In the wake of the COVID-19 pandemic, research is swiftly progressing to comprehend the impact on solo self-employed individuals and microenterprises. Although there is unanimous agreement within the literature that this unprecedented event has profoundly affected businesses globally, evidence regarding these impacts’ precise direction and extent remains inconclusive. A limited understanding exists concerning the various intersecting factors influencing entrepreneurs’ affectedness and coping strategies. This article employs qualitative interview data to examine how entrepreneurs from knowledge-intensive services and retail and hospitality sectors in Germany experienced, navigated and responded to the multifaceted challenges posed by the COVID-19 pandemic. Results reveal that factors at the intersection of sector affiliation, gender, migrant background and care/parental responsibilities determine entrepreneurs’ affectedness and shape their coping strategies, including using state aid programmes. Highlighting distinct combinations of intersecting factors, we contribute to advancing the ongoing scholarly discourse on crisis dynamics and intersectionality in entrepreneurship and policymaking.

Servant leadership and employee innovative behaviour: Unpacking the role of support for innovation and creative self-efficacy in knowledge intensive service context

Employee innovative behaviour is widely emphasized as a critical driver of organizational innovation. Drawing on social information processing theory, this research proposes that by exhibiting servant leadership style, organizational managers can stimulate employee innovative behaviour directly and through the mechanism of support for innovation. This study also anticipates that the role of of employees’ creative self-efficacy in strengthening the influence of support for innovation on innovative behaviour. To test the proposed relationships, data is collected from 338 IT professionals working in twelve large-sized IT-based service organizations of Pakistan. The results surfaced from PLS-SEM analysis indicate strong support for direct and positive linkage between servant leadership and innovative behaviour and significant role of support for innovation in mediating this relationship. However, the accentuating role of creative self-effecacy is not supported. This study extends existing knowledge concerning the nexus between servant leadership and innovation by examining the mechanism of support for innivation by which servant leadership can augment employee innovative behaviour. Findings of this research entails vital implications for service organizations striving for superior innovation performance. Furthermore, some contradictory findings of this research call for further empirical investigation for more finegrained managerial implications.

FUNCTIONING OF BUSINESS ENTITIES IN UKRAINE IN THE CONTEXT OF PERFORMING SCIENTIFIC ACTIVITIES AND PROVIDING SCIENTIFIC SERVICES

The article analyzes the peculiarities of the functioning of economic entities in Ukraine in the context of the implementation of knowledge-intensive activities and the provision of knowledge-intensive services, which allows to substantiate the essence of the innovation process as the main factor in the development of modern production. The domestic statistical materials were used, in particular the Classification of types of economic activity from 2010, as well as indicators of business entities, grouped according to special aggregations provided for in Regulation (of the European Union - hereinafter EU) № 2020 / 1197 of 30.07.2020 regarding structural statistics of enterprises in 2010-2022 with the aim of forming approaches to the use of the concepts «science-intensive activity» and «science-intensive services». The expediency of dividing knowledge-intensive services into such types as knowledge-intensive high-tech services, knowledge-intensive market services, knowledge-intensive financial services and other knowledge-intensive services is substantiated, which made it possible to reveal the relationship between knowledge-intensive services and knowledge-intensive scientific activities in general, as well as in the business industry in particular. A correlation-regression analysis of the influence of knowledge-intensive services on knowledge-intensive activities in Ukraine, including knowledge-intensive activities in the business industry, was carried out, which allowed to reveal a high density of communication, and the growing straight-line function indicates the need to increase the provision of knowledge-intensive services for the growth of knowledge-intensive activities. Based on the analysis of the normative legal acts, the given laws of Ukraine regulating the use of knowledge-intensive services determine the directions of their implementation in the context of compliance with existing processes and connection with the types of knowledge-intensive activities. The method of analyzing the operating environment was used in order to identify the efficiency between types of knowledge-intensive services and knowledge-intensive activities, which made it possible to justify the need to increase the volume of knowledge-intensive market services, other knowledge-intensive services, knowledge-intensive activities and business industry.

Service Activity and Patented Innovation in Manufacturing Firms

Noting the significant shift in the manufacturing sector towards services in recent decades, this study examines the potential of service operations as a source of customer insight. We study whether regular customer exposure during service operations can drive commercially significant and patentable innovation. Furthermore, we highlight the underexplored heterogeneity in the knowledge-generating potential of service activities. Using the media richness theory, we argue that more contact-intensive, knowledge-intensive, or focused services can provide richer customer information. By analyzing data from 8,087 unique manufacturing firms and 1,546,216 patents over a 30-year timeframe, we find that a higher level of service activity results in a higher level of patented innovation, which is stronger for contact-intensive and knowledge-intensive services. Post hoc analyses reveal that such innovations tend to be more radical in nature and depart from the firm's historical innovation patterns. Our study offers a critical managerial insight that, to maximize their innovation potential, manufacturers should expand into high-contact, knowledge-intensive services and treat their service operations as strategic market intelligence media.

Embodied emissions policies—design options and political mobilization potential

Abstract The topic of greenhouse gas emissions embodied in products is gaining in prominence and the possibilities for measuring and verifying them are improving. This provides fertile ground for those who demand that climate policy should address such embodied emissions. There are different design options for policies targeting embodied emissions. Such differences affect which groups can be mobilized in their favour. This paper shows that procurement standards which target intermediate products can mobilize the support of relatively low carbon producers of high carbon materials, while product standards which target final products can mobilize the support of producers of relatively low carbon materials and knowledge-intensive service providers.

Service sector firm death and productivity in urban and rural locations

While the positive impact of firm productivity on survival is well documented, limited evidence exists on geographic variations of this relationship and on services industries. We show that in knowledge intensive services, this relationship is more strongly moderated in core urban areas compared to suburban and rural areas.

The influence of knowledge-intensive service industry agglomeration in the Yangtze River Delta urban agglomeration on regional economy

Knowledge-intensive service industry has become an important part of social economy, which not only promotes the innovation of modern service industry, but also promotes the upgrading and transformation of manufacturing industry. The agglomeration of knowledge-intensive service industry is not only the inevitable result of economic growth, but also the premise of sustained economic growth. Moreover, China's national economy is transforming from an industrialized economy to a service-oriented and knowledge-based economy, and the importance of knowledge-intensive service industry is increasing day by day. This paper constructs a theoretical framework of the influence of population agglomeration on the economic development of urban agglomerations. The article holds that population agglomeration promotes the economic development of urban agglomerations through the upgrading of industrial structure and the promotion of human capital. In the future, we need to focus on the similarities and differences between population agglomeration and economic development of urban agglomerations in central China, explore the factors of economic development of urban agglomerations, and provide reasonable suggestions for the government to formulate relevant economic policies. This paper, from an innovative research perspective, based on the perspective of population agglomeration, studies the path of its role in regional economic development, which can make up for this defect to some extent. Moreover, the research object has been innovated and the research method has been improved. On the basis of the above, the panel data of the Yangtze River Delta from 2012 to 2021 is selected as the research sample, the location entropy index is taken as the explanatory variable, the regional gross domestic product (GDP) is taken as the explanatory variable, and the rationality of economic theory and the significance of econometric test are considered. Finally, the data are analyzed and tested by regression. The empirical analysis of the Yangtze River Delta urban agglomeration proves the importance of knowledge-intensive service industry agglomeration to regional economic development. Finally, based on the contribution of knowledge-intensive service industry agglomeration to regional economy, the development of knowledge-intensive service industry and the promotion of industrial agglomeration are studied.

Driving forces behind service innovation in knowledge-intensive services with different knowledge bases

Purpose The purpose of this paper is to identify and describe the influence of the knowledge base (KB) of the company on driving forces of innovation processes in knowledge-intensive services (KIS) and to compare the level of innovativeness of the final services. Design/methodology/approach The paper investigates through qualitative research 11 KIS organisations with different KB. Findings The research results identified and described the influence of the KB on driving forces of innovations processes and its results in companies with four newly identified KBs (analytical, synthetic, symbolic and compliance). Research limitations/implications Further research, based on a larger number of companies, is needed to confirm the results of this research and to complement the effect of the KB on driving forces of innovation. Practical implications This research can help organisations understand how to develop strategic plans and new ideas for innovative services depending on the KB of the organisation. Social implications The description of successful innovation processes and results in several leading companies presented in the study may help other companies in identifying knowledge-integration practices to improve performance and innovation processes that support multiplicity, productivity and creativity. Originality/value The study systemised the sources of new ideas for innovation in companies with different KB, several driving forces of innovation were identified and how these forces are affected by each KB; lastly, innovation results were compared in companies with different KB.

Mega-urbanization, territorial fragmentation and social inequality in the Global South: The case of Mexico city and its city-region

City-regions have become the new dominant form of urbanization in both developed and developing countries, comprising a polycentric network of multiple cities of assorted sizes. However, urbanization does not occur uniformly within the city-region, creating several types of territorial inequalities. This study argues that there is a lack of city-region studies in Latin America for analysing these internal inequalities, expressed, among other aspects, in fragmented land occupation, highly differentiated economic decentralisation, and marked social-urban-rural and urban-urban inequalities. The city-region territory represents a fragmented, divided territory in an urban-rural, social, and economic sense.The main findings of this study of Mexico City's city-region point to the fact that globalization dynamized the economic development of metropolitan zones and second-tier cities, yet that its effect on rural areas was limited. It has created a clear territorial distinction between its main urban and rural territories, with the latter effectively becoming poor regional peripheries. Economic advantages have favoured metropolitan areas through the decentralisation of manufacturing and knowledge-intensive services, excluding small cities and rural areas from this economic model. The last two are the clearest losers in this process since they are associated with places with the most obvious disadvantages and the most marked social inequalities. Rural areas have low productivity and incipient industrialisation, and expel the migrant population, whereas metropolitan peripheries have high levels of social marginalisation.

The B2B relationship in industrial companies from the position of hidden champions: knowledge-intensive services for small business

The B2B relationship in industrial companies from the position of hidden champions: knowledge-intensive services for small business

Предпосылки и последствия территориальной сервисизации в российских регионах

The need to find new sources of economic growth in industrial and old industrial areas determines the importance of research into the relationship between knowledge-intensive business services and industrial development in regions. This paper aims to explore how Russian regions participate in territorial servitisation, focusing on the growth of knowledge-intensive business service activities. The study also seeks to determine whether this participation helps boost productivity in manufacturing companies by implementing a servitisation strategy—specifically, by adding services to their products. The proposed analytical framework addresses the gap between research on the effects of servitisation strategies and the potential for enhancing a region’s industrial capacity through the knowledge-intensive business services sector. This study is the first to use Russian data to explore the concept of territorial servitisation, thereby contributing to the advancement of this topic in economic literature through its novel methodology. The research employs a three-step CDM model with fixed effects for panel data. Based on the econometric analysis of manufacturing companies across 56 Russian regions, the findings indicate that the integration of knowledge-intensive business services into the regional economy is positively influenced by market size and an increase in the number of manufacturing firms. Moreover, the anticipated growth rate of knowledge-intensive services is positively associated with the servitisation of manufacturing firms in the region. In addition, the study shows a positive correlation between the projected share of employment in servitised firms and productivity in manufacturing firms, as measured by output per employee. The results of this study can inform policy-making in regional economic and industrial development. However, the study faces limitations related to the challenges of accurately capturing the actual use of service classifications (OKVEDs) by Russian manufacturing companies.

Konvergencija profitnih stopa u Evropskoj ekonomskoj oblasti - analiza panel podataka

This paper examines profitability disparities across the European economies using the aggregate and sectoral data for the period from 1995 to 2019 and applying a combination of panel unit root tests and the club convergence procedure. For most of the sectors, no convergence was identified at the aggregate level. Convergence within the clubs to multiple equilibrium levels, however, was identified. This convergence pattern was the most typical in the knowledge-intensive service sectors. The exogenous shocks had temporary effects on the economies' profit rates (thus contributing to convergence), whereas the country and sector-specific profitability components were characterized by stochastic behavior (attesting to nonconvergence). Overall, the persistence of profitability disparities was demonstrated. The findings suggest the importance of the firm-specific and local profitability drivers and the limited effects of the macroeconomic and competition policies on profit rates.