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Organization of Knowledge and Innovation: The Case of Finnish Business Services

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  • Aija Leiponen
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    Abstract

    This empirical study examines knowledge creation activities in business service firms. Using survey data of 167 Finnish knowledge-intensive business service firms, I explore hypotheses about the organization of learning and innovation. Results from an exploratory factor analysis combined with regression analyses suggest that, first, collective application of knowledge is more likely to lead to significant improvements in services than individual application of knowledge. Second, external sourcing of knowledge, particularly from customers and competitors, is more conducive to new service introductions than local and incremental learning on the job. Broad information sourcing and internal cooperation to mobilize knowledge thus support the renewal of knowledge-intensive business services. More significant service innovations are also supported by highly educated employees, but the role of R&D investments is not significant.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Industry and Innovation.

    Volume (Year): 12 (2005)
    Issue (Month): 2 ()
    Pages: 185-203

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    Handle: RePEc:taf:indinn:v:12:y:2005:i:2:p:185-203

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    Related research

    Keywords: Knowledge; innovation; business service firms; Finland;

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    Cited by:
    1. Mina, Andrea & Bascavusoglu-Moreau, Elif & Hughes, Alan, 2014. "Open service innovation and the firm's search for external knowledge," Research Policy, Elsevier, vol. 43(5), pages 853-866.
    2. Love, James H. & Ganotakis, Panagiotis, 2013. "Learning by exporting: Lessons from high-technology SMEs," International Business Review, Elsevier, vol. 22(1), pages 1-17.
    3. Forsman, Helena, 2011. "Innovation capacity and innovation development in small enterprises. A comparison between the manufacturing and service sectors," Research Policy, Elsevier, vol. 40(5), pages 739-750, June.
    4. Jenny Meyer, 2010. "Does Social Software Support Service Innovation?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 17(3), pages 289-311.
    5. Joerg Thomae & Volker Zimmermann, 2013. "Knowledge Protection Practices in Innovating SMEs," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 233(5-6), pages 691-717, October.
    6. Leiponen, Aija & Byma, Justin, 2009. "If you cannot block, you better run: Small firms, cooperative innovation, and appropriation strategies," Research Policy, Elsevier, vol. 38(9), pages 1478-1488, November.
    7. Trigo, Alexandre & Vence, Xavier, 2012. "Scope and patterns of innovation cooperation in Spanish service enterprises," Research Policy, Elsevier, vol. 41(3), pages 602-613.
    8. A. Lasagni, 2011. "European SMEs, external relationships and innovation: some empirical evidence," Economics Department Working Papers 2011-EP04, Department of Economics, Parma University (Italy).

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