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Organization of knowledge exchange: An empirical study of knowledge-intensive business service relationships

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  • Aija Leiponen

Abstract

This article empirically examines, the structure of relationships between business service firms and their clients, in particular, the allocation of control rights to the intellectual assets created in joint projects. Business service firms are a distinctive case because their 'product' is essentially knowledge, and in many cases this knowledge is partly tacit and collectively generated and applied. It is proposed that allocation of the rights to intellectual assets in service relationships has a bearing on the creation and deployment of knowledge. Therefore, from the perspective of a service firm, contractual arrangements need to be aligned with the nature of its knowledge base. Knowledge base is characterized here by the firm's service strategy and by its learning strategy. Estimation results using a survey dataset of 167 business service firms provide support for the conjecture. Service firms that provide expert skills or learn incrementally are less likely to retain control rights to their intellectual output. A possible interpretation is that control rights are less valuable to knowledge service providers, whose activities are based on tacit and non-replicable knowledge resources, than to firms with organizationally controlled and replicable resources.

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  • Aija Leiponen, 2006. "Organization of knowledge exchange: An empirical study of knowledge-intensive business service relationships," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 443-464.
    • Handle: RePEc:taf:ecinnt:v:15:y:2006:i:4-5:p:443-464
    DOI: 10.1080/10438590500512976
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    2. John N. Walsh & Jamie O’Brien, 2017. "A Knowledge-Based Framework for Service Management," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-31, December.
    3. Pantic-Dragisic, Svjetlana & Söderlund, Jonas, 2020. "Swift transition and knowledge cycling: Key capabilities for successful technical and engineering consulting?," Research Policy, Elsevier, vol. 49(1).
    4. George Van Leeuwen & Luuk Klomp, 2006. "On the contribution of innovation to multi-factor productivity growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 367-390.
    5. John N. Walsh & Jamie O’Brien, 2018. "Knowledge Asymmetries and Service Management: Three Case Studies," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 1-26, September.
    6. Amara, Nabil & D'Este, Pablo & Landry, Réjean & Doloreux, David, 2016. "Impacts of obstacles on innovation patterns in KIBS firms," Journal of Business Research, Elsevier, vol. 69(10), pages 4065-4073.
    7. Amara, Nabil & Landry, Réjean & Traoré, Namatié, 2008. "Managing the protection of innovations in knowledge-intensive business services," Research Policy, Elsevier, vol. 37(9), pages 1530-1547, October.

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