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The role of market competition for knowledge competencies,R&Dand innovation : an empirical analysis for German firms
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Orientador(es)
Resumo(s)
Purpose – Knowledge competencies and (R&D) activities are one of the most important sources of innovation
and have been widely discussed in the literature. In comparison, the role of the competitive environment for the
innovation activities of firms is still open to debate and has not been fully understood yet. Therefore, this paper
intends to provide new evidence on the interaction between knowledge competencies and R&D activities of
firms on the one side and their competitiveness in the market environment on the other. In particular, the
moderating function of market competition is explored. In this respect, the analysis covers the main innovation
types as well as both sectors, manufacturing and services.
Design/methodology/approach – The empirical analysis is based on a three years panel dataset of German
manufacturing and service firms obtained from Mannheim Innovation Panel (MIP) and Community Innovation
Surveys (CISs: 2011, 2013 and 2015). For the estimation, a binary instrumental variable treatment model with
Heckman selection method is used. Also, it provides a suitable approach to estimating the binary variables in
order to cope with endogeneity concerns.
Findings – The estimation results show thatR&D activities and knowledge competencies are positively related
to innovation activities of different types conditioned on firms’ specific perception of their competitive
environment, in terms of outdated products/services as well as strong competition from abroad. Most
importantly, the results from the moderation estimation reveal that there is a significant difference between the
manufacturing and service sector. Service firms engage more in internal R&D activities on generating product
innovations while the manufacturing firms conduct more external R&D on specific types of innovation. Further,
the authors find that strong competition from abroad positively and significantly reinforces the effect of
knowledge competencies on innovation activities for more types in services than in manufacturing. In contrast,
outdated products and services tend to decline the effect of knowledge competencies for some innovation types in
both sectors.The authors also observe a positive and significant reinforcement effect on knowledge competencies.
However, it is found more beneficial for service firms since they can employ more innovation strategies.
Originality/value – The focus of the study is mainly on the impact of firms’ competitive environment on
innovation activities in various types through its interaction with knowledge competencies andR&D activities,
across manufacturing and service firms.
Descrição
Palavras-chave
Knowledge competencies Market competitiveness Internal and external R&D activities Innovation
Contexto Educativo
Citação
Basit, Shoaib Abdul, Thomas Kuhn e Uwe Cantner (2022). "The role of market competition for knowledge competencies,R&Dand innovation : an empirical analysis for German firms". European Journal of Management Studies, 27(2):229-253
Editora
Emerald Publishing Services