IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v9y2018i1d10.1007_s13132-015-0330-z.html
   My bibliography  Save this article

Multi-Business Firms, Knowledge Flows and Intra-Network Open Innovations

Author

Listed:
  • Manuel Villasalero

    (University of Castilla-La Mancha)

Abstract

The increasing competition in the marketplace has led firms to change their innovation patterns to a more open system according to which they rely on networks to manage knowledge resources and innovate. The so-called open innovation paradigm has been developed by taking single-business firms and external networks as cornerstones of the standard model. However, in the case of multi-business firms, the role of internal networks has been neglected. Business units within multi-business corporations have the potential advantage of relying on both external partners and internal peers in order to support their product innovation process. The corporate network thus enables business units to provide knowledge (source knowledge from) to peers in their quest to bring new products onto the market. This study analyses the impact of four types of open innovation activities on business units’ product innovation performance, which are classified according to the directionality (outside-in and inside-out) and locus (cross-business and across-boundaries) of the innovation flows. The results from a sample of 227 business units show that business units should look outside firm boundaries for inbound innovation and throughout business units for outbound innovation if they are to improve their innovation performance.

Suggested Citation

  • Manuel Villasalero, 2018. "Multi-Business Firms, Knowledge Flows and Intra-Network Open Innovations," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(1), pages 162-179, March.
    • Handle: RePEc:spr:jknowl:v:9:y:2018:i:1:d:10.1007_s13132-015-0330-z
    DOI: 10.1007/s13132-015-0330-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-015-0330-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-015-0330-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Breschi, Stefano & Lissoni, Francesco & Malerba, Franco, 2003. "Knowledge-relatedness in firm technological diversification," Research Policy, Elsevier, vol. 32(1), pages 69-87, January.
    2. Hüseyin Tanriverdi & N. Venkatraman, 2005. "Knowledge relatedness and the performance of multibusiness firms," Strategic Management Journal, Wiley Blackwell, vol. 26(2), pages 97-119, February.
    3. Vojislav Maksimovic & Gordon Phillips, 2002. "Do Conglomerate Firms Allocate Resources Inefficiently Across Industries? Theory and Evidence," Journal of Finance, American Finance Association, vol. 57(2), pages 721-767, April.
    4. Dahlander, Linus & Gann, David M., 2010. "How open is innovation?," Research Policy, Elsevier, vol. 39(6), pages 699-709, July.
    5. Oliver E. Williamson, 1991. "Strategizing, economizing, and economic organization," Strategic Management Journal, Wiley Blackwell, vol. 12(S2), pages 75-94, December.
    6. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    7. Tarun Khanna & Yishay Yafeh, 2007. "Business Groups in Emerging Markets: Paragons or Parasites?," Journal of Economic Literature, American Economic Association, vol. 45(2), pages 331-372, June.
    8. Joshua D. Shackman, 2007. "Corporate diversification, vertical integration, and internal capital markets: A cross-country study," Management International Review, Springer, vol. 47(4), pages 479-504, October.
    9. Cesaroni, Fabrizio, 2004. "Technological outsourcing and product diversification: do markets for technology affect firms' strategies?," Research Policy, Elsevier, vol. 33(10), pages 1547-1564, December.
    10. Lichtenthaler, Ulrich, 2010. "Organizing for external technology exploitation in diversified firms," Journal of Business Research, Elsevier, vol. 63(11), pages 1245-1253, November.
    11. Laura Rondi & Davide Vannoni, 2005. "Are EU Leading Firms Returning to Core Business? Evidence on Refocusing and Relatedness in a Period of Market Integration," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(2), pages 125-145, September.
    12. repec:bla:jfinan:v:59:y:2004:i:2:p:479-506 is not listed on IDEAS
    13. Grimpe, Christoph & Sofka, Wolfgang, 2009. "Search patterns and absorptive capacity: Low- and high-technology sectors in European countries," Research Policy, Elsevier, vol. 38(3), pages 495-506, April.
    14. Lichtenthaler, Ulrich & Ernst, Holger, 2007. "Developing reputation to overcome the imperfections in the markets for knowledge," Research Policy, Elsevier, vol. 36(1), pages 37-55, February.
    15. Anil K. Gupta & Vijay Govindarajan, 2000. "Knowledge flows within multinational corporations," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 473-496, April.
    16. Antoinette Schoar, 2002. "Effects of Corporate Diversification on Productivity," Journal of Finance, American Finance Association, vol. 57(6), pages 2379-2403, December.
    17. Abhirup Chakrabarti & Kulwant Singh & Ishtiaq Mahmood, 2007. "Diversification and performance: evidence from East Asian firms," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 101-120, February.
    18. Juan Santalo & Manuel Becerra, 2008. "Competition from Specialized Firms and the Diversification–Performance Linkage," Journal of Finance, American Finance Association, vol. 63(2), pages 851-883, April.
    19. Kenneth R. Ahern & Jarrad Harford, 2014. "The Importance of Industry Links in Merger Waves," Journal of Finance, American Finance Association, vol. 69(2), pages 527-576, April.
    20. Santalo, Juan & Becerra, Manuel, 2006. "The dominance of diversified versus specialized firms across industries," Journal of Business Research, Elsevier, vol. 59(3), pages 335-340, March.
    21. Ran Duchin & Denis Sosyura, 2013. "Divisional Managers and Internal Capital Markets," Journal of Finance, American Finance Association, vol. 68(2), pages 387-429, April.
    22. Francesco Schiavone & Manuel Villasalero, 2013. "Creativity, Organizational Knowledge, and the Power of Dreams," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 4(3), pages 279-292, September.
    23. Lee G. Branstetter & Raymond Fisman & C. Fritz Foley, 2006. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U. S. Firm-Level Panel Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 321-349.
    24. Daniel Fasnacht, 2018. "Open Innovation in the Financial Services," Management for Professionals, in: Open Innovation Ecosystems, edition 2, chapter 4, pages 97-130, Springer.
    25. André Spithoven & Wim Vanhaverbeke & Nadine Roijakkers, 2013. "Open innovation practices in SMEs and large enterprises," Small Business Economics, Springer, vol. 41(3), pages 537-562, October.
    26. Sayan Chatterjee & Birger Wernerfelt, 1991. "The link between resources and type of diversification: Theory and evidence," Strategic Management Journal, Wiley Blackwell, vol. 12(1), pages 33-48, January.
    27. Montgomery, Cynthia A. & Hariharan, S., 1991. "Diversified expansion by large established firms," Journal of Economic Behavior & Organization, Elsevier, vol. 15(1), pages 71-89, January.
    28. Julia Porter Liebeskind, 2000. "Internal Capital Markets: Benefits, Costs, and Organizational Arrangements," Organization Science, INFORMS, vol. 11(1), pages 58-76, February.
    29. Fan, Joseph P H & Lang, Larry H P, 2000. "The Measurement of Relatedness: An Application to Corporate Diversification," The Journal of Business, University of Chicago Press, vol. 73(4), pages 629-660, October.
    30. Nilanjan Basu, 2010. "Trends in corporate diversification," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 24(1), pages 87-102, March.
    31. Wayne S. DeSarbo & C. Anthony Di Benedetto & Michael Song & Indrajit Sinha, 2005. "Revisiting the Miles and Snow strategic framework: uncovering interrelationships between strategic types, capabilities, environmental uncertainty, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 26(1), pages 47-74, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marius Băban & Călin Florin Băban & Tudor Mitran, 2023. "Universities as an External Knowledge Source for Industry: Investigating the Antecedents’ Impact on the Importance Perception of Their Collaboration in Open Innovation Using an Ordinal Regression-Neur," Mathematics, MDPI, vol. 11(7), pages 1-23, March.
    2. Liu, Weiwei & Tao, Yuan & Bi, Kexin, 2022. "Capturing information on global knowledge flows from patent transfers: An empirical study using USPTO patents," Research Policy, Elsevier, vol. 51(5).
    3. Scott-Kennel, Joanna & Saittakari, Iiris, 2020. "Sourcing or sharing in MNE networks? National headquarters and foreign subsidiaries as knowledge conduits in SMOPECs," International Business Review, Elsevier, vol. 29(1).
    4. Atiyeh Safardoust & Soroush Ghazinoori & Manouchehr Manteghi & Mohammad Naghizadeh & Jahanyar Bamdad Soofi, 2024. "Network Heterogeneity and Firm Performance: the Role of Network Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8020-8052, June.
    5. Aishwarya Narayan & Sumukh Hungund, 2022. "Enhancing Firm Performance Through Adoption of Innovation: an Empirical Evidence from Indian Biotechnological Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2431-2456, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fernando Anjos & Cesare Fracassi, 2015. "Shopping for Information? Diversification and the Network of Industries," Management Science, INFORMS, vol. 61(1), pages 161-183, January.
    2. Santoro, Gabriele & Bresciani, Stefano & Papa, Armando, 2020. "Collaborative modes with Cultural and Creative Industries and innovation performance: The moderating role of heterogeneous sources of knowledge and absorptive capacity," Technovation, Elsevier, vol. 92.
    3. Pavel Sevcik, 2015. "Financial Frictions, Internal Capital Markets, and the Organization of Production," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(3), pages 505-522, July.
    4. Villasalero, Manuel, 2017. "A resource-based analysis of realized knowledge relatedness in diversified firms," Journal of Business Research, Elsevier, vol. 71(C), pages 114-124.
    5. M. V. Shyam Kumar, 2013. "The Costs of Related Diversification: The Impact of the Core Business on the Productivity of Related Segments," Organization Science, INFORMS, vol. 24(6), pages 1827-1846, December.
    6. Rodriguez-Duarte, Antonio & Sandulli, Francesco D. & Minguela-Rata, Beatriz & Lopez-Sanchez, Jose Ignacio, 2007. "The endogenous relationship between innovation and diversification, and the impact of technological resources on the form of diversification," Research Policy, Elsevier, vol. 36(5), pages 652-664, June.
    7. Delgado-Verde, Miriam & Martín-de Castro, Gregorio & Cruz-González, Jorge & Navas-López, José Emilio, 2021. "Complements or substitutes? The contingent role of corporate reputation on the interplay between internal R&D and external knowledge sourcing," European Management Journal, Elsevier, vol. 39(1), pages 70-83.
    8. Stefan Erdorf & Thomas Hartmann-Wendels & Nicolas Heinrichs & Michael Matz, 2013. "Corporate diversification and firm value: a survey of recent literature," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 27(2), pages 187-215, June.
    9. Nippa, Michael, 2011. "Zur Notwendigkeit des Corporate Portfolio Management: Eine Würdigung der wissenschaftlichen Forschung der letzten vier Jahrzehnte," Freiberg Working Papers 2011/02, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    10. Zhao Rong & Sheng Xiao, 2017. "Innovation†Related Diversification and Firm Value," European Financial Management, European Financial Management Association, vol. 23(3), pages 475-518, June.
    11. Kali, Raja & Sarkar, Jayati, 2011. "Diversification and tunneling: Evidence from Indian business groups," Journal of Comparative Economics, Elsevier, vol. 39(3), pages 349-367, September.
    12. Lorenz, Steffi, 2015. "Diversität und Verbundenheit der unternehmerischen Wissensbasis: Ein neuartiger Messansatz mit Indikatoren aus Innovationsprojekten," Discussion Papers on Strategy and Innovation 15-01, Philipps-University Marburg, Department of Technology and Innovation Management (TIM).
    13. Young-Choon Kim & Taekjin Shin & Sangchan Park, 2021. "Enhancing firm performance through intra-group managerial experience: Evidence from group-affiliated firms in Korea," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 435-465, June.
    14. Michel A. Habib & Ulrich Hege & Pierre Mella-Barral, 2013. "Entrepreneurial Spawning and Firm Characteristics," Management Science, INFORMS, vol. 59(12), pages 2790-2804, December.
    15. Nesta, Lionel, 2008. "Knowledge and productivity in the world's largest manufacturing corporations," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 886-902, September.
    16. Emilie R. Feldman & Claudine Gartenberg & Julie Wulf, 2018. "Pay inequality and corporate divestitures," Strategic Management Journal, Wiley Blackwell, vol. 39(11), pages 2829-2858, November.
    17. Antonia Madrid-Guijarro & Dominique Philippe Martin & Domingo García-Pérez-de-Lema, 2021. "Capacity of open innovation activities in fostering product and process innovation in manufacturing SMEs," Review of Managerial Science, Springer, vol. 15(7), pages 2137-2164, October.
    18. Małgorzata Runiewicz-Wardyn & Joanna Lesniowska, 2023. "Introducing the open innovation model in Polish biopharmaceutical companies: major drivers and barriers," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 51-77.
    19. Marinelli, Federico, 2008. "Persistence of outstanding performance and shareholder value among diversified firms: The impact of past performance, efficient internal capital market, and relatedness of business segments," IESE Research Papers D/758, IESE Business School.
    20. Xue Wang, 2018. "The Effect Of Inbound Open Innovation On Firm Performance In Japanese Manufacturing Firms: Comparative Study Between Research Centre And Business Unit," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-35, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:9:y:2018:i:1:d:10.1007_s13132-015-0330-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.