Managing cross-border knowledge transfer for innovation: An introduction to the special issue

This introduction to the special issue maps the extant research on managing crossborder knowledge for innovation and classifies it into four clusters: knowledge spillovers and location, international alliances and R&D networks, knowledge transfer and absorptive capacity, and learning organization and capabilities. The eleven articles that compose the special issue are introduced, and a future agenda for international business research is proposed.     

Managing global knowledge transfer: Inpatriate manager embeddedness and firm innovation

The purpose of this study is to explore the role of tacit knowledge transfer in a particular type of global manager - the inpatriate manager who is typically relocated from the MNC’s subsidiary to headquarter. To do so, we draw on social embeddedness theory. Our paper suggests that if an inpatriate manager becomes embedded within the MNCs headquarter, tacit knowledge transfer will occur resulting in innovative practices and a global mindset within the MNCs headquarters. This study takes the unique approach of studying the barriers that inpatriate managers face in the transfer of tacit knowledge and highlights the role of human resources in facilitating the transfer of knowledge across the MNC. The paper articulates the implications for policy and practice and a future research agenda.     

R&D policies, trade and process innovation

We set up a simple trade model with two countries hosting one firm each. The firms invest in cost-reducing R&D, and each government may grant R&D subsidies to the domestic firm. We show that it is optimal for a government to provide higher R&D subsidies the lower the level of trade costs, even if the firms are independent monopolies. If firms produce imperfect substitutes, policy competition may become so fierce that only one of the firms survives. International policy harmonization eliminates policy competition and ensures a symmetric outcome. However, it is shown that harmonization is not necessarily welfare maximizing. The optimal coordinated policies may imply an asymmetric outcome with R&D subsidies to only one of the firms.     

Technology,innovation and knowledge: The importance of ideas and international connectivity

The relevance of ideas is at the core of the IB field and has been captured in concepts like technology, innovation and knowledge. While these concepts have evolved over the last decades, the point that the ideas and the international connectivity are central for IB remains genuine. This paper is an attempt to take stock of the evolution of the concepts technology, innovation and knowledge in IB literature along the past five decades with a particular focus on the role of the Columbia Journal of World Business (CJWB) and the Journal of World Business (JWB) in this evolution. Likewise, our objective is to offer a research agenda for the coming decade. We proceed in two steps. First, we scrutinize how the IB literature has progressed and expanded over the last five decades, illustrating this on the basis of articles published in CJWB and JWB. Second, we take a helicopter view on this literature and reflect on the insights we have gained and the challenges the IB field has ahead that can constitute the basis for a future research agenda. We highlight the importance of creating a micro-foundation of knowledge processes where mechanisms on the interaction between the higher levels (nation, firm, teams) and the individual level are clarified.     

The impact of knowledge management on innovation and entrepreneurship in the biotechnology and telecommunications industries

In the resource-based view approach, the knowledge frontier rests on the understanding of the process of creating and recreating distinctive competences. Moreover, in spite of the importance of knowledge assets, how innovation distinctive competences are generated in organizations is still an unknown factor. This research studies the effect of introducing knowledge management programs in the development of innovation distinctive competences, using two knowledge intensive industries. We establish a conceptual delimitation of knowledge management as a directive system through a set of principles and practices. The theoretical relationships we propose are tested in an empirical study carried out in 222 firms from the Spanish biotechnology and telecommunications industries.      

Innovation success of non-R&;D-performers: substituting technology by management in SMEs

This paper investigates the impact of in-house R&D and innovation management practices on innovation success in small and medium-sized firms (SMEs). While there is little doubt about the significance of technology competence for generating successful innovations, in-house R&D activities may be a particular challenge for SMEs due to high risk exposure, high fixed costs, high minimum investment and severe financial constraints. SMEs may thus opt for refraining from R&D and relying more on innovation management tools in order to achieve innovation success. We analyse whether such a strategy can pay off. Based on data from the German CIS, we find that R&D activities are a main driver for innovation success if combined with external R&D, using external innovation sources or by entering into co-operation agreements. SMEs without in-house R&D can yield a similar innovation success if they effectively apply human resource management tools or team work to facilitate innovation processes.

The effects of industry cluster knowledge management on innovation performance

Research on industrial clusters mostly focuses on the effects of the competitive advantage they generate. This study takes a different approach, conducting empirical research on three types of Taiwanese parks (export processing zones, industrial zones, and science parks), in which economic development is particularly prominent, and which have industry cluster characteristics. The study explores the effects of special resources and relationships among cluster firms on innovation performance, and focuses on knowledge management as the mediator for investigation. A survey, regression analysis, and correlation analysis probe into the effects of the special resources and relationships among industrial clusters on corporate knowledge management and innovation performance. Knowledge management emerges as the mediator of industry clusters in terms of corporate innovation performance, thus providing support for the research hypotheses. The findings of this study are valuable for further research and strategic thinking on the sustainability of corporate operations.     

Innovation, R&D cooperation and labor recruitment: evidence from Finland

This article investigates the role played by one type of firm interaction, namely R&D cooperation, and also the acquisition of labor, in the promotion of industrial innovations. We employ a unique innovation dataset from Finland which combines firm specific information about the innovation performance of the firms along with their individual characteristics, as well as firm specific information regarding the origins of their recent labor acquisitions. Analyzing this data allows us to identify the different roles which the knowledge spillovers and labor markets play in the innovation process. Our results suggest that small firms are generally more innovative than large firms; R&D cooperation is an essential feature of innovation, but the variety of cooperation is of little importance; and labor acquisition appears to be only of limited importance for innovation.

The Internetalisation of information,knowledge, and interaction components of the firm's internationalisation process

Abstract

Transcending traditional national borders, the Internet is an evolving technology that has opened up many new international market opportunities. However, ambiguity remains, with limited research and understanding of how the Internet influences the firm's internationalisation-process components. As a consequence, there has been a call for further investigation of the phenomenon. Thus the purpose of this study was to investigate the Internet's impact on internationalisation-process components, specifically, information availability, information usage, and interactive communication, with international market growth. Analysis was undertaken using structural equation modelling. Findings highlight the positive mediating impact of the Internet on information availability and usage, with the international market growth of the firm.     

Strategic human resource practices and innovation performance — The mediating role of knowledge management capacity

This study examines the role of knowledge management capacity in the relationship between strategic human resource practices and innovation performance from the knowledge-based view. This study uses regression analysis to test the hypotheses in a sample of 146 firms. The results indicate that strategic human resource practices are positively related to knowledge management capacity which, in turn, has a positive effect on innovation performance. The findings provide evidence that knowledge management capacity plays a mediating role between strategic human resource practices and innovation performance. Finally, this study discusses managerial implications and highlights future research directions.     

Services and innovation systems: European models of Technology Centres

In regional contexts with a dense fabric of small- and medium-sized companies, the promotion of knowledge-intensive services through Technology Centres is a key innovation policy. This paper examines four models of Technology Centres in Europe: Baden-Württemberg (Germany), Denmark, Emilia-Romagna (Italy) and the Valencian Community (Spain). Aspects such as the participation of private agents, the financing of the Centres, and the diversity and heterogeneity of the models are discussed. Both the economic-productive base (company structure, sector specialization, location patterns, etc.) and the political–institutional features (distribution of competences, available budget, etc.) are major points for establishing the definition of each model.

There will be exports and licensing: The effects of patent rights and innovation on firm sales

Previous work has focused on how intellectual property rights affect inward technology transfer. This paper is among the first to study whether patent rights contribute to outward technology transfers. Patent protection can affect the ability of firms to be sources of technology through its effects on innovation and commercialization. Using micro data, this paper finds that patent rights and innovation are positively associated with the exporting and licensing of firms, controlling for other determinants of technological capacity, although the effect is not symmetric across firms in all countries. Patent rights have a strong impact on the export and licensing activities of firms in developed countries, and only on the licensing activities of firms in developing countries. Moreover, transfers of technology develop sequentially – namely, exporting before licensing – due to the differing sunk costs of each type of entry. The results have implications for how innovation policies and activities contribute to the outward orientation of firms.     

Dynamic analysis of innovation and international transfer of technology through licensing

This paper develops a quality-ladder type dynamic general equilibrium model with endogenous innovation and technology licensing as a major source of international technology transfer in developing countries. Examining the dynamic characteristics of the model fully, we explore the short- and long-run effects of both an improvement in the probability of reaching a licensing agreement with a given effort and an increase in the license fee rate. The model shows that the former promotes innovation and technology transfers in both the long and short run, while the latter discourages them.     

Repatriate knowledge transfer: Antecedents and boundary conditions of a dyadic process

In this study, we build on the ability-motivation-opportunity framework to test whether both repatriates’ disseminative capacity and domestic employees’ absorptive capacity as well as their opportunities for interaction affect repatriate knowledge transfer. Further, we examine the moderating effects of two distinctive factors associated with repatriate knowledge transfer: repatriate knowledge characteristics and characteristics of international assignments. Using multi-source time-lagged data from 101 dyads, we find support for most of our hypotheses. Our study contributes to theory and practice by providing an integrated analysis of antecedents and boundary conditions of repatriate knowledge transfer and by highlighting its dyadic nature.     

Towards a model of destination innovation process: an integrative review

The goal of the present paper is to integrate five types of literature related to the innovation process (i.e. cluster theory, innovation systems, network relations, knowledge management, and innovation types) and apply them to the local tourism destination to build a destination innovation process model with macro and micro perspectives. The suggested models intend to broaden the thinking on destination innovation process for tourism-related agents at the local and national level. The paper undertakes a careful review of the relevant literature before creating the conceptual models. The paper’s novelty and uniqueness lies in suggesting a new conceptual model of addressing how innovation competence of tourism destinations can be developed, and offering insight for tourism-related agents at the local and national level into how to effectively create and manage innovations. Future research should undertake empirical studies to test the integrated models presented in this conceptual paper.     

Returns to alliance portfolio diversity: The relative effects of partner diversity on firm's innovative performance and productivity

This study considers the impact of diversification in types of technological alliances, resulting in alliance portfolio diversity, on various dimensions of a firm's performance, as they relate to exploration and exploitation. Using a large panel of innovative firms in the Netherlands, this study shows that partner type diversity in a firm's alliance portfolio has an inverted U-shaped relationship with productivity and radical innovative performance and a positive relationship with incremental innovative performance. Moreover, the results suggest that a lower level of diversity is needed to achieve an optimal level of productivity compared to radical innovative performance, whereas for incremental innovative performance a higher level of portfolio diversity appears to give the best performance.     

Not all international assignments are created equal: HQ-subsidiary knowledge transfer patterns across types of assignments and types of knowledge

Drawing on 50 semi-structured interviews in a case study of a Belgian multinational and its foreign subsidiary in Poland, we develop new insights into how using different types of international assignments (long-term expatriation, short-term expatriation, short-term inpatriation) allows a HQ-subsidiary dyad to transfer different types of knowledge (declarative, procedural, axiomatic, relational), both from and to HQ, during and after the assignment. We show how each type of assignment acts as a unique knowledge transfer channel, and why it is critical that HQ-subsidiary dyads use an appropriate combination and sequence of international assignments reflecting their specific knowledge transfer needs.     

Impact of domestic and foreign knowledge mechanisms on the innovation performance of Indian firms

Research on emerging market firms (EMFs) has acknowledged the role of innovation in catching-up with advanced economies. Although we know that EMFs’ innovation increasingly depends on collaborations and cross-border knowledge flows, less has been said about the effectiveness of foreign and domestic knowledge mechanisms adopted to improve EMFs’ innovation performance. We hypothesize that foreign mechanisms rely on diverse knowledge and foster explorative innovation (i.e. innovation that extends the existing local competencies), while domestic mechanisms are more likely to be associated with the exploitation of the local existing competencies. Additionally, we claim that the breadth of EMFs’ absorptive capacity strengthens the impact of foreign knowledge mechanisms on explorative innovation, while depth increases the impact of domestic knowledge mechanisms on EMFs’ exploitative innovation, thus highlighting that the interplay of knowledge resources internal and external to the firm involve different levels of recombination. Our empirical analyses conducted on a sample of 161 Indian bio-pharmaceutical firms observed from 1997 to 2018 confirm our hypotheses, thus contributing to the literature on EMFs’ catching up via internationalization and innovation.     

Interlocking directorates and the knowledge transfer of supermarket retail techniques from North America to Britain

Abstract

This paper considers the importance of interlocking directorates in knowledge transfer within the retail sector. In doing so it provides a discussion of the types of knowledge and more especially the importance of tacit knowledge. Such ideas are set against a more detailed review of the changing perspectives on the role of interlocking directorships. These discussions serve as a conceptual framework to a major case study of knowledge transfer between North America and British food retailers in terms of the innovation of self-service and the development of supermarkets in post-war Britain.