The influence of KIBS-client interactions on absorptive capacity-building for environmental innovation

Abstract

Purpose Firms need to develop absorptive capacities to effectively source and exploit knowledge relevant to environmental behaviour for their own innovation activity. Business-to-business interactions can represent a significant route through which knowledge and resources about environmental innovations are transferred along the supply chain. The purpose of this paper is to explore how firms exploit business partnerships in order to build capacity for environmental innovation. In order to do so, it investigates two elements of B2B interactions – partner alignment and compatibility – and their influence on absorptive capacity-building. Design/methodology/approach This paper is based on a qualitative interview study of knowledge intensive business services (KIBS) operating in the environmental goods and services sector and their clients involved in adopting environmental innovations. Matched pairs of engineering consulting firms and their clients – tourism accommodation establishments – were selected as a sampling frame in order to study the influence of partner alignment and compatibility on the exchange of environmentally relevant knowledge and competencies. Findings The findings show that the synergistic attributes of business partners influence absorptive capacity-building and give rise to different patterns of interaction of KIBS with their client. The B2B interactions investigated are characterised by alignment along multiple objectives about the relevance of environmental behaviour. Furthermore, the compatibility of the partners’ competences is a key determinant of environmental innovation outcome. Practical implications The study highlights the role of managers in identifying and selecting those business partnerships that accrue greater potential benefit for accessing resources and competencies for eco-innovation. Originality/value The study contributes to the literature on absorptive capacity and innovation by demonstrating how B2B interactions – in this study, the interaction of KIBS with their clients – influence the capacity of firms to adopt environmental innovations which is an area of study that deserves further attention.

Influence of learning and service innovation on performance

“…Innovation requires the acquisition and use of knowledge about customers, competitors as well as internal knowledge of resources and organizational capacities (Jimenez-Jimenez et al, 2008). The degree of interaction between KIBS and their clients has been shown to indicate the impact of the type of knowledge exchanged, as well as the level of customization services developed (Pace and Miles, 2019). Therefore, companies seeking to innovate must understand that they are part of a network where they can interact and share resources, knowledge and ideas (Verma & Jayasimha, 2014).…”

The role of client knowledge absorptive capacity for innovation in KIBS

“…Application of client knowledge allows KIBS firms to determine whether there will be liable demand for innovative solutions: low or uncertain demand is one of the biggest challenges hindering innovation activities (Pellegrino and Savona, 2017). KIBS often use assimilated or de-contextualized knowledge acquired during previously executed projects, to develop new products and services with new clients and/or during new projects (Pace and Miles, 2019). The results also support suggestions that client knowledge may be used in the implementation of business process innovation, as made by, for instance, Jaakkola and Aarikka-Stenroos (2019).…”

“…KIBS–client interactions could be presented as a helix of bilateral knowledge flows (Miles, 2012). KIBS not only transfer knowledge to the clients but also acquire a lot of information about their business needs, emerging technologies or recent market trends that cause these needs, expectations regarding the required solution (Pace and Miles, 2019). KIBS may also acquire or develop some knowledge about clients in general, i.e.…”

Eco-innovación y Turismo. Una Revisión Sistemática de Literatura

“…La innovación ambiental se integra en estudios de gestión empresarial turística, representando un desafío; debido entre otros aspectos a la adquisición de tecnologías, desarrollo de competencias y prácticas ambientales (Díaz et al, 2013;Pace & Miles, 2019). También se relaciona con las políticas públicas, por generar una presión que motiva su implementación, formando a los individuos en el manejo de recursos y servicios ambientales, minimizando las prácticas contaminantes, y fomentando el mejoramiento organizacional en un contexto sustentable (Del Río et al, 2010;Hanai, 2011;Gossling, 2016;Hojnik, 2016).…”