Role Of Knowledge-intensive Business Services Research Articles

Knowledge-intensive business services and new venture growth: A sub-national analysis based on complexity theory

The significance of economic complexity in fostering extensive entrepreneurship is increasingly recognized. However, previous research has largely overlooked how economic complexity impacts intensive entrepreneurship, particularly the role of knowledge-intensive business services (KIBS) in this process. This study addresses this gap by analyzing over 12,000 observations from all 47 regions of Japan between 2006 and 2017. Our findings reveal that KIBS complexity significantly promotes new venture growth through three key mechanisms: improved financial access, enhanced professional services, and increased innovation opportunities. Furthermore, we find that the positive effects of KIBS complexity are especially strong in industries with high complexity and in urbanized regions. This study makes several contributions: it refines the analysis of economic complexity to the sub-national level, introduces a micro-level perspective to the literature on economic complexity, and connects KIBS with the intensive margin of entrepreneurship through the complexity lens.

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.

Технологическое предпринимательство как фактор развития России

Technological entrepreneurship is a potential driver of Russia’s socio-economic development. But an optimal combination of environment and business networks (entrepreneurial ecosystem) to be formed is very rare and depends on many factors. The article discusses the potential role of technology start-ups in diversification, economic and employment growth, and adaptation to technological changes. The number of start-ups in Russia had decreased since 2015, and there is a low entrepreneurial activity in comparison with other countries. In general, the change in the industry structure of startups in Russia is consistent with the global trends; the role of knowledge-intensive business services and ICT is high and growing, the share of manufacturing is declining. We revealed the determining role of socio-cultural factors, human capital and universities, business climate and access to foreign markets in the creation and success of technology companies, as well as the contradictory impact of state support. Significant and increasing role of immigrants and diaspora abroad is underestimated for Russia. We noted the inability of the widespread development of successful technology companies (“gazelles”, “unicorns”); identified regional and sectoral priorities for public policy. We examined the main elements and models of national entrepreneurial ecosystems, limitations and prospects for their application in Russia.

The role of KIBS and consultancy in the emergence of Circular Oriented Innovation

This paper analyses the role of consultancy services in the transition towards a Circular Economy (CE). To this aim, the paper brings together two different strands, the emergence of a new Circular Economy paradigm as a complex innovation process which faces many barriers and the innovative role of Knowledge Intensive Business Services (KIBS). Among KIBS, consultancy services are widely recognized in the field of innovation systems as a necessary agent for the adoption and diffusion of innovation by other agents. Circular-Oriented Innovation (COI) involves major changes, sometimes including new technologies and in most cases requiring the reorganization of value chains and the collaboration of different actors. This paper conducts a qualitative research focused on CE-related consultancy services provided by four pioneering companies in Spain. The paper sheds light on the functions developed by consultancy firms and discusses the main drivers and barriers towards COI. The findings suggest that KIBS may play an important role in the dissemination of the CE paradigm. Firstly, providing and managing knowledge to promote COI in their client’s companies; secondly, through the strategic formation of networks and alliances with other key stakeholders, which are key for the practical implementation of CE; and finally, by disseminating the ideas and principles of the CE in the system and across the society. By means of their functions, we conclude that consultancy services may help to lower some of the barriers that are usually addressed by companies, and that revolve around the lack of knowledge and the associated uncertainty.

From invention to innovation: the role of knowledge-intensive business services in technology commercialisation

ABSTRACT Firms often fail to shift from laboratory research to product development, and this failure is known as the Valley of Death. Although previous research has found solutions to the problem, the critical role of knowledge-intensive business services (KIBS) in the technology commercialisation and new product development (NPD) of manufacturing firms is often neglected. On the basis of the role theory of product innovation, this study aims to establish a new and comprehensive framework to investigate the role of KIBS in NPD in manufacturing. We identify the critical roles of KIBS as mentor and director, coordinator, strategic leader and gatekeeper, sponsor, and product champion in crossing the fuzzy front end of NPD. We find that manufacturers are likely prone to transform their inventions to innovations and finally benefit from their invented products through KIBS innovative capacity and availability.

Asian varieties of service capitalism?

There is currently only limited empirical research and theoretical conceptualisation of the role of knowledge-intensive business services (KIBS) in the economies of Asia within economic geography or elsewhere in the wider social scientific literature. This paper argues that existing theoretical understandings of KIBS are inadequate to conceptualise the nature of ongoing KIBS development in Asian economies – both emerging and mature – and seeks to address this absence by developing a theoretical framework that draws on a range of existing theoretical approaches within and beyond economic geography. To do this, it proposes the concept of ‘service capitalism’, developed from work concerned with varieties of capitalism (VoC), variegated capitalism and advanced service industries. The paper elaborates its theoretical argument by presenting research into two forms of Asian service capitalism through two case studies examining respectively the specific nature of Japanese KIBS and the development of KIBS in China. Using the case studies, it demonstrates how service industry development in both these Asian economies exhibits distinctive characteristics that are a consequence of both local institutional, corporate, and socio-cultural contexts but are also interconnected the wider global economy in complex ways. The paper thus presents a significant and disruptive challenge to existing theories of KIBS development as based on the western experience, and contemporary deployments of the varieties of capitalism and variegated capitalism approaches.

Knowledge-Intensive Business Services as Knowledge Intermediaries in Industrial Regions: A Comparison of the Hsinchu and Tainan Metropolitan Areas

The literature repeatedly stresses the role of knowledge-intensive business services (KIBS) as a provider of knowledge and information to other businesses and organizations. KIBS simultaneously promotes, mediates and enables client innovation. This investigation mainly seeks to link KIBS to the analytical structure of concepts, including regional innovation systems, knowledge exchanges and innovation patterns. This investigation interprets the role of KIBS as that of a knowledge intermediary that mediates and transmits knowledge among actors. This study also clarifies the mechanism of knowledge exchanges in different geographic innovation systems. The analytical results obtained by this investigation are applied to analyse the intermediary functions of KIBS in various metropolitan areas in southern and northern Taiwan. This investigation demonstrates variations in how KIBS act as knowledge intermediaries, and that these variations depend mostly on industrial cluster patterns, the dominant innovation patterns at their locations and the birth of sustainable KIBS. KIBS in large/core metropolitan regions, thus, are initially based on science, technology and innovation industrial activities, and further closely resemble doing, using and interaction industrial activities. Consequently, more informal learning processes, such as local buzz and discussion/competition relations, tend to develop in such regions.

The Role of Knowledge-Intensive Business Services in Spanish Local Tourist Production Systems

This paper analyses the evolution of the knowledge base in local tourist production systems (LTPS) in Spain and of knowledge-intensive business services (KIBS) and the effects on labour productivity in tourist services. Innovation depends on an enterprise's ability to generate new knowledge and absorb external knowledge, and KIBS are external providers of knowledge. The process ends when the acquired knowledge has an effect on innovation and the impact is reflected in increased productivity. This approach assesses learning through interaction and space. It applies multidimensional scaling to detect associations between variables and LTPS. The results indicate that most changes in productivity are caused by a combination of tacit and codified knowledge, but this differs depending on the LTPS. Labour productivity also increases in the LTPS, which further increases the supply of KIBS.

Innovation modes and strategies in knowledge intensive business services

This study identifies differences in research and development and innovation activities, expenditures, modes and strategies in knowledge intensive business services (KIBS), finance, and manufacturing. By applying descriptive and exploratory statistical methods on firm-level data, it succeeds in constructing distinctive innovation profiles for the sectors. The results indicate differences in the role of international markets for innovation production and in the existence of innovator vs. modifier by sectors. Moreover, the role of KIBS is central in emerging research and innovation systems as they act as knowledge transmitters between markets and science.

Determinants of Market Extension in Knowledge-Intensive Business Services: Evidence from a Regional Innovation System

Several studies have emphasized the role of knowledge-intensive business services (KIBS) in fostering innovation in metropolitan areas and regional innovation systems. Such areas are capable of expressing a strong demand for KIBS and consequently stimulate the rise and growth of KIBS. Despite an abundance of literature on KIBS emphasizing the relevance of spatial proximity to customers, many KIBS develop relationships on a broader national or even international scale. No studies have focused explicitly on this apparent discrepancy as yet. The aim of this paper is therefore to fill this theoretical and empirical gap by explaining the firm-level factors relating to the market extension of KIBS within the framework of regional innovation systems. Our analysis is based on a quantitative study on more than 150 KIBS supplying design or communication services located in the Veneto region (north-eastern Italy), an area that can be described as a regional innovation system. Five variables were considered, that is, size, experience, service standardization, investments in network technologies and relational intensity. Our results confirm that three of these variables, but not service standardization and relational intensity, correlate positively with the market extension of KIBS. Policy implications are also discussed.

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

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

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

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

Intermediating between the international and local levels: business consultancy and advertising firms and their clients in Finland

The role of Knowledge-Intensive Business Services (KIBS) as intermediaries and nodes in innovation systems has recently become more acknowledged. The increased need of clients to monitor and understand the international developments in their respective fields of business often calls for access to global business intelligence, in which KIBS can act as pipelines. The main purpose of this article is to study and discuss the role that KIBS play in their clients' innovation activities and, particularly, whether and how KIBS channel knowledge from the international to national and regional levels. Empirically, the focus particularly lies on two Finnish KIBS subsectors: advertising and marketing services and business and management consultancy, including some of the largest firms of these industries.

The role of KIBS in the IC development of regional clusters

PurposeThe paper seeks to introduce the concept of knowledge‐intensive business services (KIBS) in the context of regional networks and to analyze the roles of KIBS in regional development, especially from the viewpoint of regional intellectual capital.Design/methodology/approachRegional networks are presented as the networks of production, development and innovation in the region. Drawing from recent literature, the roles of KIBS in regional networks are discussed.FindingsIt is argued that networks for production emphasize explicit knowledge, networks for development emphasize tacit knowledge, and networks for innovation emphasize emergent, potential knowledge. It is further stated that KIBS provide the timely information needed in production networks, transfer best practices that support learning in development networks, and function as sources of innovation and facilitators of innovation processes in innovation networks.Practical implicationsThe paper provides an approach to reduce the complexity of regional networks into a more manageable level, and highlights the importance of knowledge‐intensive business services in regions.Originality/valueThe approach used in this paper addresses the following gaps in existing research: it argues that KIBS are important actors in the regional IC development, highlights that the roles of KIBS are different in production, development and innovation activities, and argues that a successful region needs all of these activities.

Singapurs Weg in die Wissensökonomie

Singapore’s road to a knowledge-based economy. The role of knowledge-intensive business services in the national system of innovation. In 1998, Singapore’s government announced its vision to transform the city state into a knowledge-based economy (KBE) through a gradual shift from value adding to value creation. As both users and producers of knowledge, knowledge-intensive business services (KIBS) are commonly seen as a cornerstone of the KBE. After assessing the development, size and structure of Singapore’s KIBS sector, we use data from innovation surveys of manufacturing and KIBS firms to assess the latter’s dual role as innovators and bridges for innovation. Our results allow us to point out policy recommendations and sketch possible avenues for further research.

Business services as actors of knowledge transformation: the role of KIBS in regional and national innovation systems

Over the last years, there has been a significant increase in the attention paid to the activities of knowledge-intensive business services (KIBS). KIBS produce and diffuse knowledge, which is crucial for innovation processes. The paper gives an overview of the role and function of KIBS in innovation systems and their knowledge production, transformation and diffusion activities. Focusing on innovation interactions between manufacturing small- and medium-sized enterprises (SMEs) and KIBS, the empirical analyses grasps KIBS position in five regional contexts. The analysis leads to the conclusion that innovation activities link SMEs and KIBS through the process of knowledge generation and diffusion.