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

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  • 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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    References listed on IDEAS

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    Cited by:

    1. World Bank Group, 2016. "Unlocking Firm Level Productivity and Promoting More Inclusive Growth," World Bank Publications - Reports 23792, The World Bank Group.
    2. Nourhene BLIBECH & Sarra Berraies, 2018. "The impact of CEO' duality and board's size and independence on firms’ innovation and financial performance," E3 Journal of Business Management and Economics., E3 Journals, vol. 9(1), pages 022-029.
    3. Ye Seul Choi & Up Lim, 2017. "Contextual Factors Affecting the Innovation Performance of Manufacturing SMEs in Korea: A Structural Equation Modeling Approach," Sustainability, MDPI, vol. 9(7), pages 1-15, July.
    4. Serhat Burmaoglu & Harun Sesen, 2017. "Determinants of the Firm Innovation: The Turkish Case," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(5), pages 284-305, May.
    5. Hansen, Ulrich Elmer & Lema, Rasmus, 2019. "The co-evolution of learning mechanisms and technological capabilities: Lessons from energy technologies in emerging economies," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 241-257.
    6. Stefan, Ioana & Bengtsson, Lars, 2017. "Unravelling appropriability mechanisms and openness depth effects on firm performance across stages in the innovation process," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 252-260.
    7. 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.
    8. Phung, Thuy M.T. & Vermeulen, P.A.M. & Knoben, Joris & Thọ Đạt, Trần, 2018. "Made in Vietnam : The Effects of Internal, Collaborative, and Regional Knowledge Sources of Product Innovation in Vietnamese Firms," Other publications TiSEM b9296264-405c-4575-8893-b, Tilburg University, School of Economics and Management.
    9. Yuosre F. Badir & Björn Frank & Marcel Bogers, 2020. "Employee-level open innovation in emerging markets: linking internal, external, and managerial resources," Journal of the Academy of Marketing Science, Springer, vol. 48(5), pages 891-913, September.
    10. Thomas Wolfgang Thurner, 2017. "TRANSFER REVENUES OF RESEARCH AND TECHNOLOGY ORGANIZATIONS (RTOs) IN TIMES OF ECONOMIC CRISIS," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-24, February.
    11. 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).
    12. Roszkowska Dorota, 2017. "External Knowledge Sourcing and Innovation Processes in Modern Economic Environment," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 53(2), pages 39-56, June.
    13. Patalas-Maliszewska Justyna & Śliwa Małgorzata, 2017. "The Role of Knowledge Acquisition in a Company – Research Results from German and Polish Manufacturing Companies," Foundations of Management, Sciendo, vol. 9(1), pages 87-98, February.
    14. 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.

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    More about this item

    Keywords

    knowledge; innovation; structural equation modeling;
    All these keywords.

    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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