Creating and Capturing Value from External Knowledge: The Moderating Role of Knowledge Intensity

17 Pages Posted: 21 May 2014

See all articles by Stefano Denicolai

Stefano Denicolai

University of Pavia

Matias Ramirez

University of Sussex - Science and Technology Policy Research Unit (SPRU)

Joe Tidd

Imperial College London - Imperial College of Science, Technology and Medicine; University of Sussex - Science and Technology Policy Research Unit (SPRU)

Date Written: June 2014

Abstract

Business model innovation (BMI) often involves the acquisition of external resources, their integration with and adaptation to internal capabilities and the exploitation of these novel combinations to create and capture value in new ways. However, studies focusing on the relationships among capabilities, BMI and firm performance are rare. In this paper, we adopt broader measures of internal and external knowledge, which include codified intangibles such as patents and copyrights, and examine the effects the combinations and interactions have on sales growth based on a dataset of 310 firms from four European countries. Using the broader measure of knowledge, we find support for the curvilinear relationship reported in studies using research and development‐intensity as a proxy. However, we also find that firms with low levels of internal knowledge benefit most from an ‘optimal’ investment in externally generated knowledge, but the influence on sales growth is very sensitive to the degree of external knowledge acquired. By contrast, knowledge‐intensive firms are relatively freer in defining their knowledge sourcing strategy. We discuss the implications for exploiting knowledge and complementary assets in BMI.

Suggested Citation

Denicolai, Stefano and Ramirez, Matias and Tidd, Joe, Creating and Capturing Value from External Knowledge: The Moderating Role of Knowledge Intensity (June 2014). R&D Management, Vol. 44, Issue 3, pp. 248-264, 2014, Available at SSRN: https://ssrn.com/abstract=2439680 or http://dx.doi.org/10.1111/radm.12065

Stefano Denicolai (Contact Author)

University of Pavia ( email )

Corso Strada Nuova, 65
27100 Pavia, 27100
Italy

Matias Ramirez

University of Sussex - Science and Technology Policy Research Unit (SPRU) ( email )

Mantell Building
Falmer
Brighton BN1 9RH UK, Sussex
United Kingdom

Joe Tidd

Imperial College London - Imperial College of Science, Technology and Medicine ( email )

53 Prince's Gate
London, SW7 PG
United Kingdom
+44 171 594 9115 (Phone)
+44 171 823 7685 (Fax)

University of Sussex - Science and Technology Policy Research Unit (SPRU) ( email )

Mantell Building
Falmer
Brighton BN1 9RH UK, Sussex
United Kingdom
01273 877160 (Phone)

HOME PAGE: http://www.sussex.ac.uk/spru/people/jtidd.html

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
545
PlumX Metrics