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How do collaboration and investments in knowledge management affect process innovation in services?

Author

Listed:
  • Ashok, Mona

    (Henley Business School)

  • Narula, Rajneesh

    (Henley Business School)

  • Martinez-Noya, Andrea

    (Spanish Ministry of Economy and Competitiveness)

Abstract

Purpose: Despite the keen interest in radical and incremental innovation, few studies have tested the varying impact of firm-level factors in service sectors. This paper analyses how collaboration with existing and prospective users, and investments in knowledge management (KM) practices can be adapted to maximise the outputs of radical and incremental process innovation in a Knowledge-Intensive Business Service (KIBS) industry. Methodology: Original survey data from 166 Information Technology Service (ITS) firms and interviews with 13 executives provide the empirical evidence. PLS-SEM is used to analyse the data. Findings: Collaboration with different types of users, and investments in KM practices affect radical versus incremental process innovation differently. Collaboration with existing users influences incremental process innovation directly, but not radical innovation; and prospective user collaboration matters for radical, but not incremental innovation. Furthermore, for radical innovation, investments in KM practices mediate the impact of prospective user collaboration on innovation. Implications: While collaboration with existing users for incremental process innovations does not appear to generate significant managerial challenges, to pursue radical innovations firms must engage in intensive collaboration with prospective users. Higher involvement with prospective users requires higher investment in KM practices to promote efficient intra- and inter-firm knowledge flows. Originality: This study is based on a large-scale survey, together with management interviews. Radical and incremental innovations require engagements with different kinds of users in the service industry, and knowledge management tools.

Suggested Citation

  • Ashok, Mona & Narula, Rajneesh & Martinez-Noya, Andrea, 2016. "How do collaboration and investments in knowledge management affect process innovation in services?," MERIT Working Papers 039, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2016039
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    File URL: https://www.merit.unu.edu/publications/wppdf/2016/wp2016-039.pdf
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    References listed on IDEAS

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    7. Ghasemzadeh, Khatereh & Bortoluzzi, Guido & Yordanova, Zornitsa, 2022. "Collaborating with users to innovate: A systematic literature review," Technovation, Elsevier, vol. 116(C).
    8. Youngcheoul Kang & Nakbum Choi & Seoyong Kim, 2021. "Searching for New Model of Digital Informatics for Human–Computer Interaction: Testing the Institution-Based Technology Acceptance Model (ITAM)," IJERPH, MDPI, vol. 18(11), pages 1-36, May.
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    11. Rafał Drewniak & Robert Karaszewski, 2020. "Diffusion of knowledge in strategic alliance: empirical evidence," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 387-416, June.
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    14. Martinez-Noya, Andrea & Narula, Rajneesh, 2018. "What more can we learn from R&D alliances? : A review and research agenda," MERIT Working Papers 2018-022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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    More about this item

    Keywords

    user collaboration; existing and prospective users; incremental innovation; radical process innovation; KIBS firms; knowledge management; PLS-SEM;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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