[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v42y2021i11p2104-2136.html
   My bibliography  Save this article

Knowledge sources, innovation objectives, and their impact on innovation performance: Quasi‐replication of Leiponen and Helfat (2010)

Author

Listed:
  • Ravi Srinivasan
  • Adrian Choo
  • Sriram Narayanan
  • Soumodip Sarkar
  • Antti Tenhiälä
Abstract
Research Summary The well‐known study by Leiponen and Helfat (2010) examined how firms increased their odds of innovation success by pursuing multiple parallel innovation objectives and knowledge sources. We replicate their study across geographic and temporal contexts using three sets of data: from Finland (N = 884) in 2006–2008 and from other European countries in two different time periods (N = 36,480 in 2006–2008 and 24,326 in 2008–2010). Our results largely corroborate their core findings of the direct effects. We also find no evidence of diminishing returns to the breadth of innovation objectives, and we find at best slight evidence of diminishing returns to the breadth of knowledge sources. However, we find evidence of a significant negative interaction between knowledge sources and innovation objectives, contrary to Leiponen and Helfat's (2010) finding of a lack of evidence in a positive interaction. The new evidence of a negative interaction effect suggests that the positive effect of breadth in knowledge sources can also diminish contingent upon the breadth of innovation objectives. Managerial Summary Companies are increasingly searching for new sources of knowledge while simultaneously pursuing multiple strategic innovation objectives. The results of our analysis from two multicountry datasets show that increased number of knowledge sources and strategic objectives are likely to result in higher innovation performance, that is, increased revenue from new products or increased likelihood of new product introduction. However, simultaneously pursuing greater number of strategic objectives while seeking knowledge from a greater number of sources may not result in greater innovation success. Consequently, managers should either focus on a narrow set of objectives while increasing their search breadth or pursue a broader set of objectives while focusing on fewer sources of knowledge. There is evidence of slight reduction in the ability to introduce new products when firms pursue more than eight knowledge sources. Otherwise, there is no evidence of diminishing returns of knowledge sources on revenue from new products or diminishing returns of objectives on innovation performance.

Suggested Citation

  • Ravi Srinivasan & Adrian Choo & Sriram Narayanan & Soumodip Sarkar & Antti Tenhiälä, 2021. "Knowledge sources, innovation objectives, and their impact on innovation performance: Quasi‐replication of Leiponen and Helfat (2010)," Strategic Management Journal, Wiley Blackwell, vol. 42(11), pages 2104-2136, November.
    • Handle: RePEc:bla:stratm:v:42:y:2021:i:11:p:2104-2136
    DOI: 10.1002/smj.3287
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/smj.3287
    Download Restriction: no
    File URL: https://libkey.io/10.1002/smj.3287?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
    ---><---

    References listed on IDEAS

    as
    1. Richard A. Bettis & Constance E. Helfat & J. Myles Shaver & Richard A. Bettis & Constance E. Helfat & J. Myles Shaver, 2016. "The necessity, logic, and forms of replication," Strategic Management Journal, Wiley Blackwell, vol. 37(11), pages 2193-2203, November.
    2. Lori Rosenkopf & Atul Nerkar, 2001. "Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 287-306, April.
    3. Lee, Jeho & Harrison, J Richard, 2001. "Innovation and Industry Bifurcation: The Evolution of R&D Strategy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(1), pages 115-149, March.
    4. Christoph Grimpe & Ulrich Kaiser, 2010. "Balancing Internal and External Knowledge Acquisition: The Gains and Pains from R&D Outsourcing," Journal of Management Studies, Wiley Blackwell, vol. 47(8), pages 1483-1509, December.
    5. Corey Billington & Rhoda Davidson, 2013. "Leveraging Open Innovation Using Intermediary Networks," Production and Operations Management, Production and Operations Management Society, vol. 22(6), pages 1464-1477, November.
    6. Atul Nerkar & Srikanth Paruchuri, 2005. "Evolution of R&D Capabilities: The Role of Knowledge Networks Within a Firm," Management Science, INFORMS, vol. 51(5), pages 771-785, May.
    7. Margarethe F. Wiersema & Harry P. Bowen, 2009. "The use of limited dependent variable techniques in strategy research: issues and methods," Strategic Management Journal, Wiley Blackwell, vol. 30(6), pages 679-692, June.
    8. Gautam Ahuja & Riitta Katila, 2001. "Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 197-220, March.
    9. Shige Makino & Takehiko Isobe & Christine M. Chan, 2004. "Does country matter?," Strategic Management Journal, Wiley Blackwell, vol. 25(10), pages 1027-1043, October.
    10. repec:bla:jomstd:v:47:y:2010:i:s2:p:1483-1509 is not listed on IDEAS
    11. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    12. Richard A. Bettis & C. K. Prahalad, 1995. "The dominant logic: Retrospective and extension," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 5-14.
    13. Cohen, Wesley M & Malerba, Franco, 2001. "Is the Tendency to Variation a Chief Cause of Progress?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(3), pages 587-608, September.
    14. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    15. Kenneth W. Koput, 1997. "A Chaotic Model of Innovative Search: Some Answers, Many Questions," Organization Science, INFORMS, vol. 8(5), pages 528-542, October.
    16. Aija Leiponen & Constance E. Helfat, 2010. "Innovation objectives, knowledge sources, and the benefits of breadth," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 224-236, February.
    17. Corey Billington & Rhoda Davidson, 2013. "Leveraging Open Innovation Using Intermediary Networks," Post-Print hal-02312028, HAL.
    18. William Ocasio, 2011. "Attention to Attention," Organization Science, INFORMS, vol. 22(5), pages 1286-1296, October.
    19. Sharon F. Matusik & Markus A. Fitza, 2012. "Diversification in the venture capital industry: leveraging knowledge under uncertainty," Strategic Management Journal, Wiley Blackwell, vol. 33(4), pages 407-426, April.
    20. Bruce Kogut, 1991. "Country capabilities and the permeability of borders," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 33-47, June.
    21. Nelson, Richard R & Winter, Sidney G, 1982. "The Schumpeterian Tradeoff Revisited," American Economic Review, American Economic Association, vol. 72(1), pages 114-132, March.
    22. Aija Leiponen, 2012. "The benefits of R&D and breadth in innovation strategies: a comparison of Finnish service and manufacturing firms," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 21(5), pages 1255-1281, October.
    23. Richard A. Bettis & Constance E. Helfat & J. Myles Shaver & Sendil K. Ethiraj & Alfonso Gambardella & Constance E. Helfat, 2016. "Replication in strategic management," Strategic Management Journal, Wiley Blackwell, vol. 37(11), pages 2191-2192, November.
    24. Eric von Hippel, 2006. "Democratizing Innovation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720477, April.
    25. Love, James H. & Roper, Stephen, 2001. "Location and network effects on innovation success: evidence for UK, German and Irish manufacturing plants," Research Policy, Elsevier, vol. 30(4), pages 643-661, April.
    26. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    27. Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, vol. 4(2), pages 154-167, June.
    28. Richard A. Bettis & Constance E. Helfat & J. Myles Shaver & Michael D. Howard & Michael C. Withers & Christina Matz Carnes & Amy J. Hillman, 2016. "Friends or strangers? It all depends on context: A replication and extension of Beckman, Haunschild, and Phillips (2004)," Strategic Management Journal, Wiley Blackwell, vol. 37(11), pages 2222-2234, November.
    29. Evenson, Robert E & Kislev, Yoav, 1976. "A Stochastic Model of Applied Research," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 265-281, April.
    30. Thomas Johnsen, 2009. "Supplier involvement in new product development and innovation: Taking stock and looking to the future," Post-Print hal-00771091, HAL.
    31. Weijian Shan & William Hamilton, 1991. "Country—specific advantage and international cooperation," Strategic Management Journal, Wiley Blackwell, vol. 12(6), pages 419-432, September.
    32. Kevin Zheng Zhou & Caroline Bingxin Li, 2012. "How knowledge affects radical innovation: Knowledge base, market knowledge acquisition, and internal knowledge sharing," Strategic Management Journal, Wiley Blackwell, vol. 33(9), pages 1090-1102, September.
    33. Frenz, Marion & Ietto-Gillies, Grazia, 2009. "The impact on innovation performance of different sources of knowledge: Evidence from the UK Community Innovation Survey," Research Policy, Elsevier, vol. 38(7), pages 1125-1135, September.
    34. Fleming, Lee & Sorenson, Olav, 2001. "Technology as a complex adaptive system: evidence from patent data," Research Policy, Elsevier, vol. 30(7), pages 1019-1039, August.
    35. James H. Love & Stephen Roper & Priit Vahter, 2014. "Learning from openness: The dynamics of breadth in external innovation linkages," Strategic Management Journal, Wiley Blackwell, vol. 35(11), pages 1703-1716, November.
    36. Raul O. Chao & Stylianos Kavadias, 2008. "A Theoretical Framework for Managing the New Product Development Portfolio: When and How to Use Strategic Buckets," Management Science, INFORMS, vol. 54(5), pages 907-921, May.
    37. William Ocasio, 1997. "Towards An Attention‐Based View Of The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 187-206, July.
    38. Bennet A. Zelner, 2009. "Using simulation to interpret results from logit, probit, and other nonlinear models," Strategic Management Journal, Wiley Blackwell, vol. 30(12), pages 1335-1348, December.
    39. Christine M. Chan & Takehiko Isobe & Shige Makino, 2008. "Which country matters? Institutional development and foreign affiliate performance," Strategic Management Journal, Wiley Blackwell, vol. 29(11), pages 1179-1205, November.
    40. C. K. Prahalad & Richard A. Bettis, 1986. "The dominant logic: A new linkage between diversity and performance," Strategic Management Journal, Wiley Blackwell, vol. 7(6), pages 485-501, November.
    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. Wyrwich, Michael & Steinberg, Philip J. & Noseleit, Florian & de Faria, Pedro, 2022. "Is open innovation imprinted on new ventures? The cooperation-inhibiting legacy of authoritarian regimes," Research Policy, Elsevier, vol. 51(1).
    2. Zhang, Dan & Pan, Xiaofei & Ma, Shiguang, 2023. "The effects of institutional investors and their contestability on firm innovation: Evidence from Chinese listed firms," Research Policy, Elsevier, vol. 52(10).
    3. Piperopoulos, Panagiotis & Jimenez-Moro, Eduardo & Yeung, Matthew & Christopoulou, Danai & Ming, Alan Au Kai, 2023. "The impact of exogenous shocks on the innovation performance of firms in the Caribbean small island economies: Quasi-replication of Paunov (2012)," Technological Forecasting and Social Change, Elsevier, vol. 196(C).

    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. Ardito, Lorenzo & Messeni Petruzzelli, Antonio, 2017. "Breadth of external knowledge sourcing and product innovation: The moderating role of strategic human resource practices," European Management Journal, Elsevier, vol. 35(2), pages 261-272.
    2. Hoppmann, Joern & Wu, Geng & Johnson, Jillian, 2021. "The impact of demand-pull and technology-push policies on firms’ knowledge search," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    3. Shinjinee Chattopadhyay & Janet Bercovitz, 2020. "When one door closes, another door opens … for some: Evidence from the post‐TRIPS Indian pharmaceutical industry," Strategic Management Journal, Wiley Blackwell, vol. 41(6), pages 988-1022, June.
    4. Xiao, Fenglong & Shen, Yinjie, 2024. "Wolves at the door to the unknown: Innovation search and hedge fund activism," Research Policy, Elsevier, vol. 53(2).
    5. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    6. Andreea N. Kiss & Dirk Libaers & Pamela S. Barr & Tang Wang & Miles A. Zachary, 2020. "CEO cognitive flexibility, information search, and organizational ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2200-2233, December.
    7. Hewitt-Dundas, Nola & Gkypali, Areti & Roper, Stephen, 2019. "Does learning from prior collaboration help firms to overcome the ‘two-worlds’ paradox in university-business collaboration?," Research Policy, Elsevier, vol. 48(5), pages 1310-1322.
    8. Ter Wal, Anne L.J. & Criscuolo, Paola & Salter, Ammon, 2017. "Making a marriage of materials: The role of gatekeepers and shepherds in the absorption of external knowledge and innovation performance," Research Policy, Elsevier, vol. 46(5), pages 1039-1054.
    9. Kim, Bongsun & Kim, Eonsoo & Foss, Nicolai J., 2016. "Balancing absorptive capacity and inbound open innovation for sustained innovative performance: An attention-based view," European Management Journal, Elsevier, vol. 34(1), pages 80-90.
    10. Shafique, Muhammad & Hagedoorn, John, 2022. "Look at U: Technological scope of the acquirer, technological complementarity with the target, and post-acquisition R&D output," Technovation, Elsevier, vol. 115(C).
    11. Grimpe, Christoph & Sofka, Wolfgang, 2016. "Complementarities in the search for innovation—Managing markets and relationships," Research Policy, Elsevier, vol. 45(10), pages 2036-2053.
    12. Kim, Youngok & Lui, Steven S., 2015. "The impacts of external network and business group on innovation: Do the types of innovation matter?," Journal of Business Research, Elsevier, vol. 68(9), pages 1964-1973.
    13. Mário A.P.M. Silva, 2024. "Substitutability in R&D and Open Innovation: Why Competing Firms Face a Paradox of Openness?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 5204-5229, June.
    14. Zakaryan, Arusyak, 2023. "Organizational knowledge networks, search and exploratory invention," Technovation, Elsevier, vol. 122(C).
    15. Turanay Caner & Susan K. Cohen & Frits Pil, 2017. "Firm heterogeneity in complex problem solving: A knowledge-based look at invention," Strategic Management Journal, Wiley Blackwell, vol. 38(9), pages 1791-1811, September.
    16. Enrique Acebo & José‐Ángel Miguel‐Dávila & Mariano Nieto, 2021. "External stakeholder engagement: Complementary and substitutive effects on firms' eco‐innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2671-2687, July.
    17. Jiao, Hao & Wang, Tang & Yang, Jifeng, 2022. "Team structure and invention impact under high knowledge diversity: An empirical examination of computer workstation industry," Technovation, Elsevier, vol. 114(C).
    18. Markku Maula & Wouter Stam, 2020. "Enhancing Rigor in Quantitative Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 44(6), pages 1059-1090, November.
    19. van den Oever, Koen, 2017. "Uncharted waters : A behavioral approach to when, why and which organizational changes are adopted," Other publications TiSEM 0136c8c2-ecdd-4f82-8ca7-d, Tilburg University, School of Economics and Management.
    20. Haji Ali Beigi, Maryam, 2021. "Is more diverse always the better? External knowledge source clusters and innovation performance in Germany," Ilmenau Economics Discussion Papers 156, Ilmenau University of Technology, Institute of Economics.

    More about this item

    Statistics

    Access and download statistics

    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:bla:stratm:v:42:y:2021:i:11:p:2104-2136. 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    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.