A knowledge-based theory of the firm: managing innovation in biotechnology

Abstract

Purpose Based on the knowledge-based view (KBV), the purpose of this study is to explore the impact of scientific knowledge resources on innovative performance, as well as the mechanisms, in the science-based innovation practice of biotechnological industry. How scientific knowledge influences the firms’ innovative performance and how external scientific knowledge flows into the firms efficiently are important issues every high-tech firms must consider. Design/methodology/approach The authors chose biopharmaceutical firms in China as the sample of this study to empirically test the hypotheses. Findings The study introduces a framework combining scientific knowledge resources, technological capabilities and innovative performance and, then, follows with an empirical investigation on firms in Chinese biotechnological industry. Survey data from biopharmaceutical firms in China prove the significantly positive impact of both stocks and flows of scientific knowledge on firms’ innovative performance, as well as the significant mediation effect, of technological capability. Practical implications From the results of this study, the authors derive the important managerial implications that talent exchange, purchasing external knowledge directly and establishing R&D alliances are three effective ways leading external scientific knowledge to flow into the firms. Originality/value The study finds that technological capability plays an intermediary role between scientific knowledge resource and innovative performance; tacit scientific knowledge stock and R&D alliance influence innovative performance through technological capability totally among them.

Impact of Ambidexterity and Environmental Dynamism on Dynamic Capability Development Trade-Offs

“…Most related studies [8,38] have agreed that the development of capabilities can establish or strengthen an enterprise's competitive advantage in a turbulent environment. According to the knowledge-based view, knowledge, which is abstract, can only be transferred via the active involvement of knowledge disseminators; in the process of learning, capability, far from being improved in the form of non-standardized specific knowledge in any subject, provides an integration mechanism [21,[41][42][43]. Zollo and Winter [5] stated that the organizational capability should be emphasized when the integration of external knowledge and information is discussed.…”

“…Following the cooperative approach, the two views with their different orientations have a competitive relationship, but can produce mutual support and help each other leverage the use of resources, which may be called combined ambidexterity [18,26]. Via repeated usage of existing knowledge and resources, managers can detect these within the firm more easily, and understand them more thoroughly, thereby reconfiguring existing knowledge and resources (exploitation), and promoting the capability to develop new products and markets (exploration) [41]. There are several studies dealing with capabilities in the knowledge-based development, and especially in the complementarity of various knowledge [41][42][43].…”

“…Via repeated usage of existing knowledge and resources, managers can detect these within the firm more easily, and understand them more thoroughly, thereby reconfiguring existing knowledge and resources (exploitation), and promoting the capability to develop new products and markets (exploration) [41]. There are several studies dealing with capabilities in the knowledge-based development, and especially in the complementarity of various knowledge [41][42][43]. They reveal the dynamic nature of capabilities in knowledge-based development, and emphasize that the combination of knowledge and capabilities generate competitive advantages [43].…”

R&D Internationalization and Green Innovation? Evidence from Chinese Resource Enterprises and Environmental Enterprises

“…In addition, the effect of R&D internationalization may be contingent upon an enterprise's knowledge stock as well as its capacity to absorb and integrate other knowledge [25]. An enterprise's practices in this regard should be focused upon knowledge management in order to achieve superior green innovation performance [26][27][28] and should be aligned with its existing knowledge stock and knowledge integration capacity [26,29,30]. However, to the best of our knowledge, no research has investigated the contingency factors reflecting firm's knowledge heterogeneity, which may contribute to explain differences across green innovations [21].…”

Employing the quality function deployment (QFD) method to support knowledge management in innovation process planning

“…What it means is the ability to transform individual knowledge into knowledge embedded in an organization through specific mechanisms. Literature in the field of Knowledge-Based View (KBV) perceives knowledge as the most important strategic asset and the basis for the innovation potential in both large (Chen, Jiao, & Zhao, 2016) and small enterprises (Hutchinson & Quintas, 2008). This theory emphasizes the relationship between knowledge and competitiveness.…”