Participation in Group Companies as a Source of External Knowledge in Obtaining and Making Profitable Radical Innovations

Sara Alonso-Muñoz, Eva Pelechano-Barahona and Rocío González-Sánchez
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Sara Alonso-Muñoz: Department of Business Administration (ADO), Applied Economics II and Fundaments of Economic Analysis, Rey−Juan−Carlos University, 28032 Madrid, Spain
Eva Pelechano-Barahona: Department of Business Administration (ADO), Applied Economics II and Fundaments of Economic Analysis, Rey−Juan−Carlos University, 28032 Madrid, Spain
Rocío González-Sánchez: Department of Business Administration (ADO), Applied Economics II and Fundaments of Economic Analysis, Rey−Juan−Carlos University, 28032 Madrid, Spain

Sustainability, 2020, vol. 12, issue 18, 1-19

Abstract: In the context of potential absorptive capacity, the present work analyzes sources of knowledge through the adjustment between the typology of sources and innovative results. Different external sources can condition the later phases of knowledge absorption. In relation to external sources of knowledge, we enrich their treatment by considering other companies in the same group as deeper relationships. In addition, we analyzed the results regarding the generation of radical innovations with impact on income. The results show that company groups can reduce costs in the exchange of technological knowledge, not only to develop radical innovations but also to improve their economic performance. Furthermore, membership in a group allows a company to obtain a greater economic return when combined with assimilation resources.

Keywords: sources of knowledge; participations in firms; potential absorptive capacity; radical innovation; profitability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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