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How Do Firms Source External Knowledge for Innovation? Analyzing Effects of Different Knowledge Sourcing Methods

Author

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  • Ki H. Kang

    ()

  • Jina Kang

    (Technology Management, Economics, and Policy Program (TEMEP); Seoul National University)

Abstract

In the era of open innovation, external knowledge is a very important source for technology innovation. In this paper, we investigate the relationship between external knowledge and performance of technology innovation. The effect of external knowledge on the performance of technology innovation can vary with different external knowledge sourcing methods. We identify three ways of external knowledge sourcing: information transfer from informal network, R&D collaboration, and technology acquisition. We propose three hypotheses to examine relationship between the three methods of external knowledge sourcing and the technology innovation performance. Our results show that information transfer from informal network and technology acquisition have positive relationships with the technology innovation performance. R&D collaboration, however, has an inverted-U shape relationship with technology innovation performance. This implies that the effect of external knowledge on technology innovation varies depending on the particular external knowledge sourcing method. This research has important implication for firms in selecting appropriate strategy for accessing external knowledge.

Suggested Citation

  • Ki H. Kang & Jina Kang, 2009. "How Do Firms Source External Knowledge for Innovation? Analyzing Effects of Different Knowledge Sourcing Methods," TEMEP Discussion Papers 200907, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2009.
  • Handle: RePEc:snv:dp2009:200907
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    References listed on IDEAS

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    1. Narula, Rajneesh, 2001. "R&D Collaboration by SMEs: new opportunities and limitations in the face of globalisation," Research Memorandum 011, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    2. Rothwell, R. & Freeman, C. & Horsley, A. & Jervis, V. T. P. & Robertson, A. B. & Townsend, J., 1993. "SAPPHO updated -- project SAPPHO phase II," Research Policy, Elsevier, vol. 22(2), pages 110-110, April.
    3. Andreas Pyka & Uwe Cantner, 1999. "Informal Networking and Industrial Life Cycles," Discussion Paper Series 181, Universitaet Augsburg, Institute for Economics.
    4. Rothwell, R. & Freeman, C. & Horlsey, A. & Jervis, V. T. P. & Robertson, A. B. & Townsend, J., 1974. "SAPPHO updated - project SAPPHO phase II," Research Policy, Elsevier, vol. 3(3), pages 258-291, November.
    5. Granstrand, Ove & Sjolander, Soren, 1990. "The acquisition of technology and small firms by large firms," Journal of Economic Behavior & Organization, Elsevier, vol. 13(3), pages 367-386, June.
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    Citations

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    Cited by:

    1. Romaric Servajean-Hilst & Richard Calvi, 2018. "Shades of the Innovation-Purchasing function – the missing link of Open Innovation," Post-Print hal-01700648, HAL.
    2. KWON Seokbeom & MOTOHASHI Kazuyuki, 2015. "How Institutional Arrangements in the National Innovation System Affect Industrial Competitiveness: A study of Japan and the United States with multiagent simulation," Discussion papers 15065, Research Institute of Economy, Trade and Industry (RIETI).
    3. Tsai-Ju Liao & Chwo-Ming Yu, 2013. "The impact of local linkages, international linkages, and absorptive capacity on innovation for foreign firms operating in an emerging economy," The Journal of Technology Transfer, Springer, vol. 38(6), pages 809-827, December.
    4. Narasimhaiah Gorla & Ananth Chiravuri & Ravi Chinta, 0. "Business-to-business e-commerce adoption: An empirical investigation of business factors," Information Systems Frontiers, Springer, vol. 0, pages 1-23.
    5. Graciela Corral De Zubielqui & Janice Jones & Laurence Lester, 2016. "KNOWLEDGE INFLOWS FROM MARKET- AND SCIENCE-BASED ACTORS, ABSORPTIVE CAPACITY, INNOVATION AND PERFORMANCE — A STUDY OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-31, August.
    6. n.d., 2015. "The effect of openness to external knowledge sources for innovation on smes’ financial performance," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 2015(4), pages 65-86.
    7. Ki H. Kang & Jina Kang, 2009. "Do External Knowledge Sourcing Methods Matter in Service Innovation? Analysis of South Korean Service Firms," TEMEP Discussion Papers 200908, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2009.
    8. Thomas Wolfgang Thurner & Stanislav Zaichenko, 2016. "Sectoral Differences In Technology Transfer," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-24, February.
    9. repec:spr:infosf:v:19:y:2017:i:3:d:10.1007_s10796-015-9616-8 is not listed on IDEAS
    10. Greco, Marco & Grimaldi, Michele & Cricelli, Livio, 2017. "Hitting the nail on the head: Exploring the relationship between public subsidies and open innovation efficiency," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 213-225.
    11. repec:krk:eberjl:v:4:y:2016:i:2:p:117-138 is not listed on IDEAS

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    Keywords

    External knowledge; open innovation; knowledge sourcing method; technology innovation.;

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