The Relationship between Knowledge Structuration and Technology Diversity: A New Solution for an Old Problem

Knowledge, as a constituent of a firm's intellectual capital and the outcome as well as a major driving force of its R&D process, is essentially different from technology. However, the literature on knowledge and technology management often treats the two terms as equal, particularly when it comes to empirical measurement. The present research contributes to the literature by providing distinct empirical approaches to knowledge and technology, among other contributions. More precisely, we find a research gap on the link between a firm's structuration of technical knowledge (across dimensions of depth and breadth) on the one hand, and its technology diversity on the other. To address this issue, we offer a novel approach based on the machine learning method to identify a firm's technological capabilities. The applicability of the proposed method is then illustrated by analyzing technological capabilities in 204 biopharmaceutical firms during the period 2006-2018 and comparing these capabilities with the firm's patents. The results show that there is a positive relationship between the breadth of knowledge and technology diversity in a firm, while the relationship between depth of knowledge and technology diversity is negative. Furthermore, the firm product/market diversification strategy moderates the relationship between the breadth of knowledge and technology diversity. The findings also indicate that knowledge and technological capabilities must be analyzed differently. Implications for research and practice are discussed.