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Participation in Group Companies as a Source of External Knowledge in Obtaining and Making Profitable Radical Innovations

Author

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  • Sara Alonso-Muñoz

    (Department of Business Administration (ADO), Applied Economics II and Fundaments of Economic Analysis, Rey−Juan−Carlos University, 28032 Madrid, Spain)

  • Eva Pelechano-Barahona

    (Department of Business Administration (ADO), Applied Economics II and Fundaments of Economic Analysis, Rey−Juan−Carlos University, 28032 Madrid, Spain)

  • Rocío González-Sánchez

    (Department of Business Administration (ADO), Applied Economics II and Fundaments of Economic Analysis, Rey−Juan−Carlos University, 28032 Madrid, Spain)

Abstract

In the context of potential absorptive capacity, the present work analyzes sources of knowledge through the adjustment between the typology of sources and innovative results. Different external sources can condition the later phases of knowledge absorption. In relation to external sources of knowledge, we enrich their treatment by considering other companies in the same group as deeper relationships. In addition, we analyzed the results regarding the generation of radical innovations with impact on income. The results show that company groups can reduce costs in the exchange of technological knowledge, not only to develop radical innovations but also to improve their economic performance. Furthermore, membership in a group allows a company to obtain a greater economic return when combined with assimilation resources.

Suggested Citation

  • Sara Alonso-Muñoz & Eva Pelechano-Barahona & Rocío González-Sánchez, 2020. "Participation in Group Companies as a Source of External Knowledge in Obtaining and Making Profitable Radical Innovations," Sustainability, MDPI, vol. 12(18), pages 1-19, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:18:p:7701-:d:415158
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