Current Issue

korean management review - Vol. 53 , No. 1

[Paper List]


[ Article ]
korean management review - Vol. 50, No. 4, pp. 929-957
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 31 Aug 2021
Received 15 Oct 2020 Revised 27 Mar 2021 Accepted 29 Mar 2021
DOI: https://doi.org/10.17287/kmr.2021.50.4.929
External Knowledge and Product Innovation in Korean Firms: Interaction Between Learning and Searching Modes
Jaegun Lee ; Moon-Goo Huh
(First Author) Ph.D. student, School of Business Administration, Kyungpook National University (hl5ylz@naver.com)
(Corresponding Author) Professor, School of Business Administration, Kyungpook National University (moongoo@knu.ac.kr)
외부지식이 제품혁신에 미치는 영향: 지식학습과 탐색방법의 상호작용을 중심으로

Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This study examines how the external knowledge affects innovation. We categorize firms’ external knowledge sources into two modes: STI(science-technology-innovation) and DUI(doing-using-interacting). At the same time, we distinguish between the breadth and depth of firms’ external knowledge acquisition strategies, while considering the interaction between the knowledge source and the acquisition strategy. Previous studies have considered the source and the acquisition strategy of external knowledge independently. Thus, in order to fill this gap in the literature, we identify two types of external knowledge, each with its own searching mode, suggesting a 2 × 2 acquisition strategy model of external knowledge.


Keywords: External knowledge source, Searching modes, Knowledge depth, Knowledge breadth, External knowledge acquisition strategy

References


1.	Ahuja, G., and Morris Lampert, C. (2001). Entrepreneurship in the large corporation: A longitudinal study of how established firms create breakthrough inventions. Strategic Management Journal, 22(6-7), pp.521-543.
2.	Ahuja, G., and Katila, R. (2001). Technological acquisitions and the innovation performance of acquiring firms: A longitudinal study. Strategic Management Journal, 22(3), pp. 197-220.
3.	Almirall, E., and Casadesus-Masanell, R. (2010). Open versus closed innovation: A model of discovery and divergence. Academy of Management Review, 35(1), pp.27-47.
4.	Apanasovich, N. (2014). Modes of innovation: a grounded meta-analysis. Journal of the Knowledge Economy, pp.1-18.
5.	Aslesen, H. W., Isaksen, A., and Karlsen, J. (2012). Modes of innovation and differentiated responses to globalisation―a case study of innovation modes in the Agder region, Norway. Journal of the Knowledge Economy, 3(4), pp.389-405.
6.	Baldwin and Clark (2000), Managing in the modular age: Architectures, Networks, and Organizations Chapter 5, The MIT Press: Cambidge, London.
7.	Baldwin, C. Y., and Clark, K. B. (2006). The architecture of participation: Does code architecture mitigate free riding in the open source development model?. Management Science, 52(7), pp.1116-1127.
8.	Bstieler, L., and Hemmert, M. (2015). The effectiveness of relational and contractual governance in new product development collaborations: Evidence from Korea. Technovation, 45, pp.29-39.
9.	Bierly, P. E., Damanpour, F., and Santoro, M. D. (2009). The application of external knowledge: organizational conditions for exploration and exploitation. Journal of Management Studies, 46(3), pp.481-509.
*10.*	Çetindamar, D., Wasti, S. N., Ansal, H., and Beyhan, B. (2009). Does technology management research diverge or converge in developing and developed countries?. Technovation, 29(1), pp.45-58.
*11.*	Cetindamar, D., Phaal, R., and Probert, D. (2009). Understanding technology management as a dynamic capability: A framework for technology management activities. Technovation, 29(4), pp.237-246.
*12.*	Chandler Jr, A. D. (1997). The Coming of Big Business. The Comparative Approach to American History, 106.
*13.*	Chen, J., Chen, Y., and Vanhaverbeke, W. (2011). The influence of scope, depth, and orientation of external technology sources on the innovative performance of Chinese firms. Technovation, 31(8), pp.362-373.
*14.*	Chesbrough, H., and Crowther, A. K. (2006). Beyond high tech: early adopters of open innovation in other industries. R&D Management, 36(3), pp.229-236.
*15.*	Chesbrough, H. W., and Appleyard, M. M. (2007). Open innovation and strategy. California Management Review, 50(1),pp. 57-76.
*16.*	Clausen, T. H., Korneliussen, T., and Madsen, E. L. (2013). Modes of innovation, resources and their influence on product innovation: Empirical evidence from R&D active firms in Norway. Technovation, 33(6), pp.225-233.
*17.*	Cockburn, I. M., and Henderson, R. M. (1998). Absorptive capacity, coauthoring behavior, and the organization of research in drug discovery. The Journal of Industrial Economics, 46(2), 157-182.
*18.*	Cohen, W. M., and Levinthal, D. A. (1989). Innovation and learning: the two faces of R&D. The Economic Journal, 99(397), pp.569-596.
*19.*	Cohen, W. M., and Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, pp.128-152.
*20.*	Collins, C. J., and Smith, K. G. (2006). Knowledge exchange and combination: The role of human resource practices in the performance of high-technology firms. Academy of Management Journal, 49(3), pp.544-560.
*21.*	Eckhardt, J. T., and Shane, S. A. (2003). Opportunities and entrepreneurship. Journal of Management, 29(3), pp.333-349.
*22.*	Fitjar, R. D., and Rodríguez-Pose, A. (2013). Firm collaboration and modes of innovation in Norway. Research Policy, 42(1), pp.128-138.
*23.*	Fleming, L., and Sorenson, O. (2001). Technology as a complex adaptive system: evidence from patent data. Research Policy, 30(7), pp.1019-1039.
*24.*	González-Pernía, J. L., Parrilli, M. D., and Peña-Legazkue, I. (2015). STI–DUI learning modes, firm–university collaboration and innovation. The Journal of Technology Transfer, 40(3), pp.475-492.
*25.*	Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109-122.
*26.*	Grant, R. M., and Baden-Fuller, C. (2004). A knowledge accessing theory of strategic alliances. Journal of Management Studies, 41(1), pp.61-84.
*27.*	Guan, J. C., Richard, C. M., Tang, E. P., and Lau, A. K. (2009). Innovation strategy and performance during economic transition: Evidences in Beijing, China. Research Policy, 38(5), 802-812.
*28.*	He, Z. L., and Wong, P. K. (2004). Exploration vs. exploitation: An empirical test of the ambidexterity hypothesis. Organization Science, 15(4), pp.481-494.
*29.*	Hernández-Espallardo, M., Sánchez-Pérez, M., and Segovia-López, C. (2011). Exploitation-and exploration-based innovations: the role of knowledge in inter-firm relationships with distributors. Technovation, 31(5), pp.203-215.
*30.*	HS Chae, Y Choi and E Heo (2014). Open innovation in venture firms: The impact of external search strategy on innovation performance of Korean manufacturing firms, Asia-Pacific Journal of Business Venturing and Entrepreneurship, 9(1), pp.1-13
*31.*	Huh, M. G. (2011). Knowledge Search and Innovation. Journal of Business Research, 40(5), pp.1247-1271.
*32.*	Hull, C. E., and Covin, J. G. (2010). Learning Capability, Technological Parity, and Innovation Mode Use. Journal of Product Innovation Management*, 27(1), pp.97-114.
*33.*	Isaksen, A., and Karlsen, J. (2010). Different modes of innovation and the challenge of connecting universities and industry: case studies of two regional industries in Norway. European Planning Studies, 18(12), pp. 1993-2008.
*34.*	Jensen, M. B., Johnson, B., Lorenz, E., and Lundvall, B. Å. (2007). Forms of knowledge and modes of innovation. Research Policy, 36(5), pp. 680-693.
*35.*	Lee, J., and Huh, M. G. (2016). How Does External Knowledge Source Influence Product Innovation In Korean Firms?. Journal of Applied Business Research, 32(2), 449.
*36.*	Lee, J.S., Park, J.H., and Bae, J.T. (2016). The Effects of Open Innovation on Innovation Productivity: Focusing on External Knowledge Search. Knowledge Management Research, 17(1), pp.49-72.
*37.*	Kale, P., Singh, H., and Perlmutter, H. (2000). Learning and protection of proprietary assets in strategic alliances: Building relational capital. Strategic Management Journal, 21(3), pp.217-237.
*38.*	Katila, R., and Ahuja, G. (2002). Something old, something new: A longitudinal study of search behavior and new product introduction. Academy of Management Journal, 45(6), pp.1183-1194.
*39.*	Katila, R. (2002). New product search over time: past ideas in their prime?. Academy of Management Journal, 45(5), pp.995-1010.
*40.*	Kirner, E., Kinkel, S., and Jaeger, A. (2009). Innovation paths and the innovation performance of low-technology firms―An empirical analysis of German industry. Research Policy, 38(3), pp.447-458.
*41.*	Klevorick, A. K., Levin, R. C., Nelson, R. R., and Winter, S. G. (1995). On the sources and significance of interindustry differences in technological opportunities. Research Policy, 24(2), pp.185-205.
*42.*	Kogut, B., and Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3(3), pp.383-397.
*43.*	Koput, K. W. (1997). A chaotic model of innovative search: some answers, many questions. Organization Science, 8(5), 528-542.
*44.*	Laursen, K., and Salter, A. (2006). Open for innovation: the role of openness in explaining innovation performance among UK manufacturing firms. Strategic Management Journal, 27(2), pp. 131-150.
*45.*	Leiponen, A., and Helfat, C. E. (2010). Innovation objectives, knowledge sources, and the benefits of breadth. Strategic Management Journal, 31(2), pp.224-236.
*46.*	Levitt, B., and March, J. G. (1988). Organizational learning. Annual Review of Sociology, pp. 319-340.
*47.*	Levinthal, D., and March, J. G. (1981). A model of adaptive organizational search. Journal of Economic Behavior & Organization, 2(4), pp.307-333.
*48.*	Levinthal, D. A., and March, J. G. (1993). The myopia of learning. Strategic Management Journal, 14(S2), pp.95-112.
*49.*	Lichtenthaler, U., and Lichtenthaler, E. (2009). A capability-based framework for open innovation: Complementing absorptive capacity. Journal of Management Studies, 46(8), pp.1315-1338.
*50.*	Lin, J. L., Fang, S. C., Fang, S. R., and Tsai, F. S. (2009). Network embeddedness and technology transfer performance in R&D consortia in Taiwan. Technovation, 29(11), pp.763-774.
*51.*	Lorenz, E. (2012). Labor market institutions, skills, and innovation style: a critique of the ‘Varieties of Capitalism’perspective. In Interactive Learning for Innovation (pp. 72-89). Palgrave Macmillan UK.
*52.*	Lundvall, B. Å., and Lorenz, E. (2007, October). Modes of Innovation and Knowledge Taxonomies in the Learning economy. In CAS workshop on Innovation in Firms.
*53.*	March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), pp.71-87.
*54.*	Mowery, D. C., and Oxley, J. E. (1995). Inward technology transfer and competitiveness: the role of national innovation systems. Cambridge Journal of Economics, 19(1), pp.67-93.
*55.*	Nelson, R. R. (2005). Technology, institutions, and economic growth. Harvard University Press.
*56.*	Nonaka, I. (1994). A dynamic theory of organizational knowledge creation. Organization Science, 5(1), pp.14-37.
*57.*	Nonaka, I., and Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamics of innovation. Oxford university press.
*58.*	Ocasio, W. (1997). Towards an attention-based view of the firm. Strategic Management Journal, pp.187-206.
*59.*	OECD. Publishing. (2015). OECD Science, Technology and Industry Scoreboard 2011. Organisation for Economic Co-operation and Development.
*60.*	Park, S. M., and Lee, B. H. (2008). The Impact of Exploration, Exploitation, and R&D Organization on Innovations in the Korean SMEs. Korea Technology Innovation Society, 11(1), 118-143.
*61.*	Park, W. W., Kim, M. S., Jeong, S. M., and Huh, K. M. (2007). Causes and remedies of common method bias. Korean Academy of Management, 15(1), pp.89-133.
*62.*	Parrilli, M. D., and Elola, A. (2012). The strength of science and technology drivers for SME innovation. Small Business Economics, 39(4), pp.897-907.
*63.*	Reichstein, T., and Salter, A. (2006). Investigating the sources of process innovation among UK manufacturing firms. Industrial and Corporate Change, 15(4), pp.653-682.
*64.*	Robertson, P. L., and Patel, P. R. (2007). New wine in old bottles: Technological diffusion in developed economies. Research Policy, 36(5), 708-721.
*65.*	Roh, D.H., Hwang, K.H., and Park H.Y. (2017). The impact of open innovation activities on performance of Korean IT SMEsVenture : Technology Transfer Experiences and Technological Collaborations. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 12(1), pp.33-46.
*66.*	Rosenkopf, L., and Nerkar, A. (2001). Beyond local search: boundary-spanning, exploration, and impact in the optical disk industry. Strategic Management Journal, 22(4), pp. 287-306.
*67.*	Rosenberg, N. (1982). Inside the black box: technology and economics. Cambridge University Press.
*68.*	SH Lee, Y Chae and Y Seo (2003), Using of external knowledge based on knowledge classification, The e-Business Studies. 4(2), pp.55-76.
*69.*	S Yi (2009), Utilization of knowledge base and its requisites for the performance of innovation using external knowledge, Knowledge Management Research. 10(4), pp.75-91.
*70.*	Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), pp.1319-1350.
*71.*	Terjesen, S., and Patel, P. C. (2015). In Search of Process Innovations The Role of Search Depth, Search Breadth, and the Industry Environment. Journal of Management, 0149206315575710.
*72.*	Urban, G. L., and Von Hippel, E. (1988). Lead user analyses for the development of new industrial products. Management Science, 34(5), pp.569-582.
*73.*	Von Hippel, E. (1998). Economics of product development by users: The impact of “sticky” local information. Management Science, 44(5), pp.629-644.
*74.*	Wuyts, S., Dutta, S., and Stremersch, S. (2004). Portfolios of interfirm agreements in technology-intensive markets: Consequences for innovation and profitability. Journal of Marketing, 68(2), pp.88-100.

∙ The author Jaegun Lee is an Ph.D. student at the School of Business Administration, Kyungpook National University, Korea. He earned his MA in strategy and organization from the School of Business Administration, Kyungpook National University, Korea. His research interests include failure experience, and R&D cooperation.

∙ The author Moon-Goo Huh, (Ph.D. Korea University) is a professor of strategy and organization at the School of Business Administration, Kyungpook National University, Korea. His current research interests include dynamic capability, competitive strategy, ambidextrous organization, knowledge and innovation, and social capital.