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Knowledge Base, Exporting Activities, Innovation Openness and Innovation Performance: A SEM Approach Towards a Unifying Framework

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In this paper we demonstrate the complexity that regulates the innovation-exports nexus. In particular we argue that innovation and exports should be treated as latent variables in order to account for as many facets possible thus, accounting for multifaceted heterogeneity. In this context, the role of innovation openness ought to be highlighted within a unified framework, as it is considered an additional activity of firms’ knowledge creation strategy. In this line, innovation and exporting orientation are ruled by the firms' strategic mix comprised of internal knowledge creation processes and the diversity of innovation openness. Theoretical and empirical links between these major components are identified and measured employing a Structural Equation Modelling (SEM) approach on a sample of Greek R&D-active manufacturing firms. Empirical findings corroborate the complexity of relationships and indicate that the firms’ knowledge base and open innovation strategy regulate via complementary and substitution relationships firms’ innovation and export performance.

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Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 14-361.

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Length: 42 pages
Date of creation: Jul 2014
Date of revision:
Handle: RePEc:kof:wpskof:14-361

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Keywords: SEM; endogeneity; open innovation strategy; knowledge base; innovation performance; export performance;

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