Innovating in knowledge-intensive entrepreneurial firms: exploring the effects of a variety of internal and external knowledge sources on goods and service innovations

Advancing knowledge-intensive entrepreneurship and innovation for economic growth and social well-being in Europe

Ethan Gifford, Daniel Ljungberg and Maureen McKelvey

Industrial and Corporate Change, 2022, vol. 31, issue 5, 1259-1284

Abstract: Although knowledge-intensive entrepreneurial firms experiencing high growth and generating innovations are widely acknowledged as important for economic growth, surprisingly little is known about how such firms achieve and maintain a high level of knowledge intensity through which to innovate. Our article further develops the concept of knowledge intensity by proposing that it is augmented by external and internal search activities carried out by the entrepreneurial firm and analyzes how these activities affect innovation performance. We use principal component analysis to derive formal and informal search channels from summated rating scales—measuring reliance on internal and external sources of knowledge—and then use fractional logit regression to explore how these channels relate to a firm’s innovative performance, i.e., the share of innovative goods and services sold. We find that searching via informal channels, and formal channels toward scientific and technological knowledge, improves innovation performance of both goods and services, while searching via formal channels toward market knowledge positively affects only innovative goods. Overall, informal channels matter more than formal channels. Lastly, we find substitution rather than complementarity effects between external and internal search channels in their effect on innovation performance in both goods and services. Thus, we interpret that building up knowledge intensity per se through search matters more for innovation performance than whether search is internally or externally focused. Our work contributes to the growing literature on knowledge-intensive entrepreneurship, to the related literature on new technology-based firms and young innovative firms, and to the general understanding of knowledge intensity at the firm level.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/icc/dtac026 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:indcch:v:31:y:2022:i:5:p:1259-1284.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by Josef Chytry

More articles in Industrial and Corporate Change from Oxford University Press and the Associazione ICC Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().