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

Author

Listed:
  • 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.

Suggested Citation

  • Anja Cotic Svetina & Igor Prodan, 2008. "How Internal and External Sources of Knowledge Contribute to Firms’ Innovation Performance," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 6(3), pages 277-299.
  • Handle: RePEc:mgt:youmgt:v:6:y:2008:i:3:p:277-299
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    File URL: http://www.fm-kp.si/zalozba/ISSN/1581-6311/6_277-299.pdf
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    References listed on IDEAS

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    8. Bj–rn Johnson & Edward Lorenz & Bengt-Åke 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. Henry Wai-Chung Yeung, 2005. "The Firm as Social Networks: An Organisational Perspective," Growth and Change, Wiley Blackwell, vol. 36(3), pages 307-328.
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    Citations

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    Cited by:

    1. World Bank Group, 2016. "Unlocking Firm Level Productivity and Promoting More Inclusive Growth," World Bank Other Operational Studies 23792, The World Bank.
    2. repec:etr:series:v:9:y:2018:i:1:p:022-029 is not listed on IDEAS
    3. repec:wsi:ijimxx:v:21:y:2017:i:02:n:s1363919617500177 is not listed on IDEAS
    4. Kang, Byeongwoo, 2014. "The innovation process of a privately-owned enterprise and a state-owned enterprise in China," IDE Discussion Papers 470, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. repec:gam:jsusta:v:9:y:2017:i:7:p:1193-:d:103851 is not listed on IDEAS
    6. repec:hur:ijarbs:v:7:y:2017:i:5:p:284-305 is not listed on IDEAS
    7. repec:eee:tefoso:v:120:y:2017:i:c:p:252-260 is not listed on IDEAS
    8. Valle, Sandra & García, Francisco & Avella, Lucía, 2015. "Offshoring Intermediate Manufacturing: Boost or Hindrance to Firm Innovation?," Journal of International Management, Elsevier, vol. 21(2), pages 117-134.
    9. Wu He & Feng-Kwei Wang, 2016. "A process-based framework of using social media to support innovation process," Information Technology and Management, Springer, vol. 17(3), pages 263-277, September.

    More about this item

    Keywords

    knowledge; innovation; structural equation modeling;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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