Ambidexterity, external knowledge and performance in knowledge-intensive firms
TL;DR: In this paper, the authors investigated the relationship between organizational ambidexterity and firm performance in knowledge-intensive firms, using a quantitative methodology involving a structural equation model to investigate whether external knowledge sourcing enhances the impact of ambideXterity on firm performance.
Abstract: The paper investigates the relationship between organizational ambidexterity and firm performance in knowledge-intensive firms. In particular, using a quantitative methodology involving a structural equation model, the research investigates whether external knowledge sourcing enhances the impact of ambidexterity on firm performance. The results show that organizational ambidexterity in knowledge-intensive firms does not, in fact, have a significant impact on firm performance, but it does have a positive and significant mediating effect considering external knowledge sourcing. The findings are presented along with interesting and significant implications for both theory and practice, largely stemming from the still much neglected relationship between organizational ambidexterity and external knowledge sourcing in the open innovation context.
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TL;DR: In this article, the authors investigate the relationship among knowledge management system, open innovation, knowledge management capacity and innovation capacity in the context of the Internet of Things (IoT).
422 citations
TL;DR: Using structural equations modeling with data collected from 43 IoT smart city project alliances in Italy, evidence is found that MNEs need to develop knowledge management capabilities combined with ICT capabilities if they want to obtain greater ambidexterity performance at the project portfolio level.
271 citations
TL;DR: In this paper, the role of ICTs and big data in intra-and interorganizational ties and the consequent effects on enterprises' innovation performance is investigated via structural equation modeling (SEM).
Abstract: The literature suggests that increasing investments in information and communication technologies (ICTs), knowledge exchange and sharing help SMEs tackle the current global and dynamic environment. Given that much of the useful knowledge resides outside the enterprises’ boundaries, these technological tools foster the gathering of big data and information. Despite these premises, few studies have considered the role of ICTs and big data in intra- and inter-organizational ties and the consequent effects on enterprises’ innovation performance. The paper investigates whether ICTs oriented to intra-organizational (in-house research and development [R&D]) and inter-organizational (open innovation) processes improve SMEs’ innovation performance. Therefore, via structural equation modelling (SEM), the study analyses a sample of 239 knowledge-intensive SMEs located in Italy. The noteworthy results are that ICTs oriented to intra- and inter-organizational innovation processes improve both these processes in generating new products and/or services. On this basis, managerial and academic implications are provided, along with avenues for further research.
269 citations
TL;DR: It is argued that the firms which develop and possess superior KM capabilities have the ability to better manage external knowledge and combine it with the internal one, which means that subsidiaries with superior KM capability are more effective in using external R&D, augmenting the magnitude of their external sources of knowledge and, consequently, improving their innovative performance.
Abstract: Purpose
This paper aims at exploring the effect of knowledge management (KM) practices on the relationship between external research and development (R&D) and innovative performance. The authors argue that the firms which develop and possess superior KM capabilities have the ability to better manage external knowledge and combine it with the internal one.
Design/methodology/approach
The authors used a sample of 117 European MNC subsidiaries. An OLS regression analysis was carried out to evaluate the moderator effect of KM on the relationship between external R&D and innovative performance.
Findings
The authors found positive evidences in favor of a moderator effect of KM. This means that subsidiaries with superior KM capabilities are more effective in using external R&D, augmenting the magnitude of their external sources of knowledge and, consequently, improving their innovative performance.
Practical implications
Managerially speaking, both corporate and subsidiaries’ managers need to understand the relevance of managing knowledge effectively and efficiently at the subsidiary level. Corporate managers need to allocate more resources (both financial and managerial) to the subsidiaries that are active in knowledge transfer and sharing, while subsidiaries managers need to implement practically the KM tools and processes at the subsidiary organizational level to improve subsidiary’s innovative performance.
Originality/value
This paper contributes mainly to the KM field, highlighting the importance of KM at the subsidiary level, whereas most of previous studies focus on different units of analysis.
261 citations
TL;DR: The empirical research was conducted on 175 small to medium enterprises in the United Kingdom, suggesting that the knowledge-driven approach is the strongest determinant, leading to a preference for informal inbound OI modes.
Abstract: Purpose
This paper aims to investigate three key factors (i.e. cognitive dimensions, the knowledge-driven approach and absorptive capacity) that are likely to determine the preference for informal inbound open innovation (OI) modes, through the lens of the OI model and knowledge-based view (KBV). The innovation literature has differentiated these collaborations into informal inbound OI entry modes and formal inbound OI modes, offering an advocative and conceptual view. However, empirical studies on these collaborations are still limited.
Design/methodology/approach
Building on the above-mentioned theoretical framework, the empirical research was performed in two stages. First, data were collected via a closed-ended questionnaire distributed to all the participants from the sample by e-mail. Second, to assess the hypotheses, structural equation modelling (SEM) via IBM® SPSS® Amos 20 was applied.
Findings
The empirical research was conducted on 175 small to medium enterprises in the United Kingdom, suggesting that the knowledge-driven approach is the strongest determinant, leading to a preference for informal inbound OI modes. The findings were obtained using SEM and are discussed in line with the theoretical framework.
Research limitations/implications
Owing to the chosen context and sector of the empirical analysis, the research results may lack generalisability. Hence, new studies are proposed.
Practical implications
The paper includes implications for the development of informal inbound OI led by knowledge-driven approach.
Originality/value
This paper offers an empirical research to investigate knowledge-driven preferences in informal inbound OI modes.
260 citations
References
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TL;DR: In this paper, a general formula (α) of which a special case is the Kuder-Richardson coefficient of equivalence is shown to be the mean of all split-half coefficients resulting from different splittings of a test, therefore an estimate of the correlation between two random samples of items from a universe of items like those in the test.
Abstract: A general formula (α) of which a special case is the Kuder-Richardson coefficient of equivalence is shown to be the mean of all split-half coefficients resulting from different splittings of a test. α is therefore an estimate of the correlation between two random samples of items from a universe of items like those in the test. α is found to be an appropriate index of equivalence and, except for very short tests, of the first-factor concentration in the test. Tests divisible into distinct subtests should be so divided before using the formula. The index
$$\bar r_{ij} $$
, derived from α, is shown to be an index of inter-item homogeneity. Comparison is made to the Guttman and Loevinger approaches. Parallel split coefficients are shown to be unnecessary for tests of common types. In designing tests, maximum interpretability of scores is obtained by increasing the first-factor concentration in any separately-scored subtest and avoiding substantial group-factor clusters within a subtest. Scalability is not a requisite.
37,235 citations
TL;DR: In this paper, the authors argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities.
Abstract: In this paper, we argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities. We label this capability a firm's absorptive capacity and suggest that it is largely a function of the firm's level of prior related knowledge. The discussion focuses first on the cognitive basis for an individual's absorptive capacity including, in particular, prior related knowledge and diversity of background. We then characterize the factors that influence absorptive capacity at the organizational level, how an organization's absorptive capacity differs from that of its individual members, and the role of diversity of expertise within an organization. We argue that the development of absorptive capacity, and, in turn, innovative performance are history- or path-dependent and argue how lack of investment in an area of expertise early on may foreclose the future development of a technical capability in that area. We formulate a model of firm investment in research and development (R&D), in which R&D contributes to a firm's absorptive capacity, and test predictions relating a firm's investment in R&D to the knowledge underlying technical change within an industry. Discussion focuses on the implications of absorptive capacity for the analysis of other related innovative activities, including basic research, the adoption and diffusion of innovations, and decisions to participate in cooperative R&D ventures. **
31,623 citations
TL;DR: In this paper, the authors propose a paradigm for managing the dynamic aspects of organizational knowledge creating processes, arguing that organizational knowledge is created through a continuous dialogue between tacit and explicit knowledge.
Abstract: This paper proposes a paradigm for managing the dynamic aspects of organizational knowledge creating processes. Its central theme is that organizational knowledge is created through a continuous dialogue between tacit and explicit knowledge. The nature of this dialogue is examined and four patterns of interaction involving tacit and explicit knowledge are identified. It is argued that while new knowledge is developed by individuals, organizations play a critical role in articulating and amplifying that knowledge. A theoretical framework is developed which provides an analytical perspective on the constituent dimensions of knowledge creation. This framework is then applied in two operational models for facilitating the dynamic creation of appropriate organizational knowledge.
17,196 citations
TL;DR: In this paper, the authors consider the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning and examine some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space.
Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.
16,377 citations
TL;DR: In this paper, the authors draw on the social and behavioral sciences in an endeavor to specify the nature and microfoundations of the capabilities necessary to sustain superior enterprise performance in an open economy with rapid innovation and globally dispersed sources of invention, innovation, and manufacturing capability.
Abstract: This paper draws on the social and behavioral sciences in an endeavor to specify the nature and microfoundations of the capabilities necessary to sustain superior enterprise performance in an open economy with rapid innovation and globally dispersed sources of invention, innovation, and manufacturing capability. Dynamic capabilities enable business enterprises to create, deploy, and protect the intangible assets that support superior long- run business performance. The microfoundations of dynamic capabilities—the distinct skills, processes, procedures, organizational structures, decision rules, and disciplines—which undergird enterprise-level sensing, seizing, and reconfiguring capacities are difficult to develop and deploy. Enterprises with strong dynamic capabilities are intensely entrepreneurial. They not only adapt to business ecosystems, but also shape them through innovation and through collaboration with other enterprises, entities, and institutions. The framework advanced can help scholars understand the foundations of long-run enterprise success while helping managers delineate relevant strategic considerations and the priorities they must adopt to enhance enterprise performance and escape the zero profit tendency associated with operating in markets open to global competition. Copyright 2007 John Wiley & Sons, Ltd.
9,400 citations