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The influence of functional and geographical diversity in collaboration on product innovation performance in SMEs

Author

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  • Owusu Sarpong

    (KU Leuven)

  • Peter Teirlinck

    (KU Leuven
    Belgian Science Policy Office (Belspo))

Abstract

Collaboration in innovation is considered an effective strategy to overcome barriers to innovate in SMEs. However, resource constraints and risk of knowledge leakage force management in SMEs to be selective with whom and where to collaborate. Still little is known about interactions between types of partners and their geographical location. This paper sheds new light on the relation between functional and geographical diversity in innovation partners and new-to-the-market and new-to-the-firm innovation performance in SMEs. Using data from two waves (2008 and 2010) of the Community Innovation Survey for Belgium, a positive relation is found between market partners and innovation new-to-the-firm, and between science and global partners and innovation new-to-the-market. A larger diversity in type and in geographical spread of partners is found to be positively associated with innovation new-to-the-market. Cooperation with a diverse set of market partners enhances new-to-the-firm innovation. More diversity in science partners enhances the balance between new-to-the-firm and new-to-the-market innovation. Diversity among international partners enhances new-to-the-firm and new-to-the-market innovation, but not the balance between both. A cooperation strategy balancing functional with geographical partner diversity enhances the balance between new-to-the-firm versus new-to-the-market innovation.

Suggested Citation

  • Owusu Sarpong & Peter Teirlinck, 2018. "The influence of functional and geographical diversity in collaboration on product innovation performance in SMEs," The Journal of Technology Transfer, Springer, vol. 43(6), pages 1667-1695, December.
  • Handle: RePEc:kap:jtecht:v:43:y:2018:i:6:d:10.1007_s10961-017-9582-z
    DOI: 10.1007/s10961-017-9582-z
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    4. Zhang, Guiyang & Gao, Yuchen & Qi, Yong, 2022. "National depth and R&D alliance portfolio international expansion: The moderation of technological discontinuity and long-term orientation," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    5. Hohberger, Jan & Wilden, Ralf, 2022. "Geographic diversity of knowledge inputs: The importance of aligning locations of knowledge inputs and inventors," Journal of Business Research, Elsevier, vol. 145(C), pages 705-719.
    6. Zahoor, Nadia & Al-Tabbaa, Omar, 2020. "Inter-organizational collaboration and SMEs’ innovation: A systematic review and future research directions," Scandinavian Journal of Management, Elsevier, vol. 36(2).
    7. Jingbei Wang & Min Guo & Hui Liu & Yafei Nie, 2023. "Partners’ partners matter: the effect of partners’ centrality diversity on the focal organization’s innovation outputs," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(3), pages 1547-1565, March.

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    More about this item

    Keywords

    Collaboration; Functional diversity; Geographical diversity; New-to-the-market innovation; New-to-the-firm innovation; SMEs;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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