nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2016‒09‒18
five papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. How do collaboration and investments in knowledge management affect process innovation in services? By Ashok, Mona; Narula, Rajneesh; Martinez-Noya, Andrea
  3. The effect of entry on R&D networks By Emmanuel Petrakis; Nikolas Tsakas
  4. Solution-oriented versus Novelty-oriented Leadership Instructions: Cognitive Effect on Creative Ideation By Hicham Ezzat; Marine Agogué; Pascal Le Masson; Benoit Weil
  5. Colocation and knowledge diffusion: evidence from million dollar plants By Christian Fons-Rosen; Vincenzo Scrutinio; Katalin Szemeredi

  1. By: Ashok, Mona (Henley Business School); Narula, Rajneesh (Henley Business School); Martinez-Noya, Andrea (Spanish Ministry of Economy and Competitiveness)
    Abstract: Purpose: Despite the keen interest in radical and incremental innovation, few studies have tested the varying impact of firm-level factors in service sectors. This paper analyses how collaboration with existing and prospective users, and investments in knowledge management (KM) practices can be adapted to maximise the outputs of radical and incremental process innovation in a Knowledge-Intensive Business Service (KIBS) industry. Methodology: Original survey data from 166 Information Technology Service (ITS) firms and interviews with 13 executives provide the empirical evidence. PLS-SEM is used to analyse the data. Findings: Collaboration with different types of users, and investments in KM practices affect radical versus incremental process innovation differently. Collaboration with existing users influences incremental process innovation directly, but not radical innovation; and prospective user collaboration matters for radical, but not incremental innovation. Furthermore, for radical innovation, investments in KM practices mediate the impact of prospective user collaboration on innovation. Implications: While collaboration with existing users for incremental process innovations does not appear to generate significant managerial challenges, to pursue radical innovations firms must engage in intensive collaboration with prospective users. Higher involvement with prospective users requires higher investment in KM practices to promote efficient intra- and inter-firm knowledge flows. Originality: This study is based on a large-scale survey, together with management interviews. Radical and incremental innovations require engagements with different kinds of users in the service industry, and knowledge management tools.
    Keywords: user collaboration, existing and prospective users, incremental innovation, radical process innovation, KIBS firms, knowledge management, PLS-SEM
    JEL: O32 M15 F23
    Date: 2016–08–19
  2. By: Anna Gerke (Audencia Recherche - Audencia Business School); Geoff Dickson (AUT - Auckland University of Technology); Michel Desbordes (CIAMS - Complexité, Innovation, Activités Motrices et Sportives - UP11 - Université Paris-Sud - Paris 11, UP11 - Université Paris-Sud - Paris 11); Stephen Gates (Audencia Recherche - Audencia Business School)
    Abstract: This study investigates how interorganizational citizenship behavior influences the innovation process. By investigating interorganizational networks and relationships, we offer new perspectives on how these linkages can serve as sources of innovation that lever competitive advantage. We identified seven dimensions of citizenship, and analyzed them with regards to different phases of the innovation process (i.e., idea, invention, exploitation). We integrated the notions of cooperative and collaborative behavior as conditions for citizenship. Our qualitative investigation of the sailing industry cluster in New Zealand demonstrates the utility of citizenship to understand, access, and use external resources to innovate. We find that two dimensions of citizenship – advancement and altruism – are most prevalent during the entire innovation process. Citizenship tends to be embedded in collaborative linkages during the idea and invention phase, but cooperative linkages are sufficient to develop citizenship during the invention and exploitation phase. Further research is necessary to generalize the role of citizenship for the innovation process.
    Keywords: innovation, citizenship, cluster
    Date: 2016–06–01
  3. By: Emmanuel Petrakis; Nikolas Tsakas
    Abstract: We investigate the effect of potential entry on the formation and stability of R&D networks considering farsighted firms. We show that the presence of a potential entrant often alters the incentives of incumbent firms to establish an R&D link. In particular, incumbent firms may choose to form an otherwise undesirable R&D collaboration in order to deter the entry of a new firm. Moreover, an incumbent firm may refrain from establishing an otherwise desirable R&D collaboration, expecting to form a more profitable R&D link with the entrant. Finally, potential entry may lead an inefficient incumbent to exit the market. We also perform a welfare analysisand show that market and societal incentives are often misaligned.
    Keywords: R&D Networks; Entry; Farsighted stability
    JEL: D85 L24 O33
    Date: 2016–09
  4. By: Hicham Ezzat (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Marine Agogué (HEC Montréal - HEC MONTRÉAL); Pascal Le Masson (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Benoit Weil (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The generation of novel ideas is critical to any innovative endeavor. However, one of the key obstacles to creativity is known as the fixation effect, which is the cognitive effect that constrains the generation of novel ideas due to the spontaneous activation of existing knowledge and solutions in individuals’ mind. Expert leaders have been considered to play an important role in overcoming these biases using diverse tools. One of these principal instruments is task instruction. Our hypothesis is that leaders’ instructions can have significant effects on followers’ ideation capacity. We investigated the effect of an instruction given by a leader to his team to generate as many original ideas to a particular creative task, either using solution or novelty-oriented approaches. Results confirmed that solution-oriented instructions activated knowledge bases in fixation, while solution-oriented instructions inhibited these knowledge bases. These results give us new sights into novel models of “less-expert” creative leadership.
    Keywords: Leadership, Creativity, Innovation, Functional Fixedness, Instructions
    Date: 2016–06–27
  5. By: Christian Fons-Rosen; Vincenzo Scrutinio; Katalin Szemeredi
    Abstract: This paper uses the entry of large corporations into U.S. counties during the 1980s and 1990s to analyse the effect of plant opening on knowledge spillovers to local inventors. We use a difference-in-differences identification strategy exploiting information on the revealed ranking of possible locations for large plants in the US. Under the identifying assumption that locations not chosen (losers) are a counterfactual for the chosen location (winner), we find that patents of these large corporations are 68% more likely to be cited in the winning counties relative to the losing counties after entry. The effect materializes after the opening of the plant, rather than after the entry decision itself. The increase in citations is stronger for more recent patents whereas patent quality does not seem to play an important role. We find that the increase in citations is larger from patents belonging to the same technology class of the cited patent.
    Keywords: productivity; innovation; knowledge diffusion
    JEL: O3 R11 R12
    Date: 2016–08

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