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How Internal and External Sources of Knowledge Contribute to Firms’ Innovation Performance

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Author Info

  • Anja Cotic Svetina

    (University of Ljubljana, Slovenia)

  • Igor Prodan

    (University of Ljubljana, Slovenia)

Abstract

This paper investigates the extent to which different knowledge sources contribute to firms’ innovation performance. The empirical analysis estimates the relationships in the structural model of the influence of knowledge sources on innovative performance using data collected through personal interviews at 303 firms. The results reveal that internal sources have the most important influence on firms’ innovative performance and confirm that, in their innovation process, firms mostly rely on knowledge developed through in-house R&D efforts, continuous improvement, and internal education and training programs. The data show that in-house learning is not sufficient for generating innovation and that firms need to supplement internal knowledge with knowledge acquired outside the firm. They mainly need to secure links with firms and institutions in the global environment if they want to secure the inflow of new ideas and approaches that will eventually lead to innovations.

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Bibliographic Info

Article provided by University of Primorska, Faculty of Management Koper in its journal Managing Global Transitions.

Volume (Year): 6 (2008)
Issue (Month): 3 ()
Pages: 277-299

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Handle: RePEc:mgt:youmgt:v:6:y:2008:i:3:p:277-299

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Related research

Keywords: knowledge; innovation; structural equation modeling;

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References

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  1. Anders Malmberg & Peter Maskell, 2006. "Localized Learning Revisited," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 37(1), pages 1-18.
  2. Roberta Capello & Alessandra Faggian, 2005. "Collective Learning and Relational Capital in Local Innovation Processes," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 75-87.
  3. Bengt-Âke Lundvall & Peter Nielsen, 1999. "Competition and transformation in the learning economy - Illustrated by the Danish case," Revue d'Économie Industrielle, Programme National Persée, vol. 88(1), pages 67-89.
  4. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer, vol. 16(3), pages 297-334, September.
  5. Henry Wai-Chung Yeung, 2005. "The Firm as Social Networks: An Organisational Perspective," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 36(3), pages 307-328.
  6. Roberta Capello, 1999. "Spatial Transfer of Knowledge in High Technology Milieux: Learning Versus Collective Learning Processes," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 353-365.
  7. Harald Bathelt & Andersand Malmberg & Peter Maskell, 2002. "Clusters and Knowledge Local Buzz, Global Pipelines and the Process of Knowledge Creation," DRUID Working Papers 02-12, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  8. Bj–rn Johnson & Edward Lorenz & Bengt-�ke Lundvall, 2002. "Why all this fuss about codified and tacit knowledge?," Industrial and Corporate Change, Oxford University Press, vol. 11(2), pages 245-262.
  9. Franz Tödtling & Patrick Lehner & Michaela Trippl, 2004. "Knowledge intensive industries, networks, and collective learning," ERSA conference papers ersa04p167, European Regional Science Association.
  10. Arne Isaksen & Bjørn T. Asheim, . "Location, agglomeration and innovation: Towards regional innovation systems in Norway?," STEP Report series 199613, The STEP Group, Studies in technology, innovation and economic policy.
  11. Lundvall, Bengt-Ake & Johnson, Bjorn & Andersen, Esben Sloth & Dalum, Bent, 2002. "National systems of production, innovation and competence building," Research Policy, Elsevier, vol. 31(2), pages 213-231, February.
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