Influence of Determinants on Innovations in Small KIBS Firms in the Czech Republic before COVID-19

Abstract

There is still a lack of empirical evidence prevalent about innovation in knowledge-intensive business services (KIBS), and more particular, about determinants of innovations in small firms to sustain their future development. Studies in this area suggest that different determinants will affect different forms of innovation outputs of KIBS. This paper investigates the direction and the significance of these influences on propensity to innovate. The empirical evidence is based on quantitative and firm-level data gathered through an email questionnaire, which yielded 128 qualified responses from small KIBS in the Czech Republic. The analysis is based on binary logistic regression to identify the effects of determinants on the propensity to innovate. In addition to the consistent results produced by studies in this area, we found reverse relationships between innovation and selected determinants. Negatively evolving knowledge (especially lack of qualified employees) and market determinants (lack of information about the market), positively stimulated small KIBS towards the propensity to introduce organizational innovations (structural and human resources practices), followed by increasing intensity of competition positively related to introducing a new service to the firm (especially t-KIBS) and insufficient availability of business partners increasing the marketing efforts. It’s evident that some negatively evolving determinants perform as incentives or driving forces to specific types of innovations. The results of this study could also be useful for owners and managers in KIBS firms engaging in innovation activities and government support, or incentivize the propensity to innovate.

Knowledge management implementation in small and micro KIBS: A categorization

“…Furthermore, research has often examined large or medium companies, while small KIBS (although they represent the predominant part of this sector) have rarely been investigated (Bumberová & Milichovský, 2020). This article contributes to filling this research gap by exploring and categorizing small and micro KIBS firms, based on their attitude towards KM.…”

“…First, they generally assume that this is a homogeneous sector or, at most, divided into generic classes based on their particular kind of economic production (as is done in the NACE‐based classifications), or on general structural features (see, e.g., Ciriaci & Palma, 2016; Huggins, 2011). Furthermore, research has often examined large or medium companies, while small KIBS (although they represent the predominant part of this sector) have rarely been investigated (Bumberová & Milichovský, 2020).…”

Factors Influencing Investments into Human Resources to Support Company Performance

“…They found that human resource development and training increase labor productivity twice as much as they increase wages, while later on, they supported only the effects of company training on labor productivity (indirect effect on investment on company equipment). Returns on investments are determined by a company's ability to combine capabilities such as financing, recruiting and training of highly skilled employees, understanding of market needs, and other factors, such as organizational changes (D'Este et al 2012;Bumberová and Milichovský 2020;Corrocher et al 2009).…”

The influence of management innovation on the organisational performance of KIBS: the mediating role of service innovation and technology

“…However, human resources management practices, such as training and remuneration management processes, adjusted to create new ideas, may encourage workers to innovate (Fu et al, 2015;Mazzei et al, 2016). Specifically, in KIBS, the structural MI increases when perceived adverse conditions regarding the access to skilled employees to develop SI (Bumberov a and Milichovskỳ, 2020). Firms can develop systematic coding and routing systems for the new service ideas by adapting the different organisational SI development structures (Chung and Tseng, 2019).…”

“…In services organisations, in a strategic combinative adoption of innovation types, the technological process innovations are associated with information TEC (Damanpour et al , 2009), which represents strategic leverage for innovating and differentiating from competitors (Chen et al , 2020; Tomo et al , 2020; Ribeiro-Navarrete et al , 2021). In addition, in KIBS, although TEC has been considered a critical factor in innovation efforts (Miles et al , 1995; Ribeiro-Navarrete et al , 2021), a considerable body of research still emphasises process innovation (Amara et al , 2016; Karlsson and Tavassoli, 2016; Bumberová and Milichovskỳ, 2020). This study seeks to expand the previous innovation research by including TEC use.…”