Dansk Center for Forskningsanalyse

TY - JOUR

T1 - External information sourcing and lead-time advantage in product innovation

AU - Van Criekingen, Kristof

PY - 2020

Y1 - 2020

N2 - Purpose: Having a short throughput time for innovation projects, i.e. lead-time, can put firms in an advantageous position. The time that lapses between a project’s start and its completion, is influenced not only by the firm's internal capabilities but also by how the firm connects to external knowledge. This paper assesses the relation between knowledge sourcing and lead-time advantage. Design/methodology/approach: This paper empirically tests the relation between external knowledge sourcing and lead-time advantage based on firm level Community Innovation Survey (CIS) data. Findings: I find that breadth and depth of the external knowledge sourcing are positively relating to lead-time advantage, albeit with diminishing returns. Investment into absorptive capacity, i.e. internal R&D, mitigates the diminishing of returns. Firms directing their external knowledge sourcing strategy toward consumers, suppliers and science are better able to capitalize on their innovations through lead-time advantages and firms also benefit from the special case of collaboration for product development. Originality/value: The conceptual novelty of this research largely consists in empirically bringing together for the first time conceptualizations of external knowledge sourcing and the strategic use of lead-time. Given the prevalence of both concepts in the modern and fast changing economy, investigating this link is of great importance.

AB - Purpose: Having a short throughput time for innovation projects, i.e. lead-time, can put firms in an advantageous position. The time that lapses between a project’s start and its completion, is influenced not only by the firm's internal capabilities but also by how the firm connects to external knowledge. This paper assesses the relation between knowledge sourcing and lead-time advantage. Design/methodology/approach: This paper empirically tests the relation between external knowledge sourcing and lead-time advantage based on firm level Community Innovation Survey (CIS) data. Findings: I find that breadth and depth of the external knowledge sourcing are positively relating to lead-time advantage, albeit with diminishing returns. Investment into absorptive capacity, i.e. internal R&D, mitigates the diminishing of returns. Firms directing their external knowledge sourcing strategy toward consumers, suppliers and science are better able to capitalize on their innovations through lead-time advantages and firms also benefit from the special case of collaboration for product development. Originality/value: The conceptual novelty of this research largely consists in empirically bringing together for the first time conceptualizations of external knowledge sourcing and the strategic use of lead-time. Given the prevalence of both concepts in the modern and fast changing economy, investigating this link is of great importance.

KW - External knowledge

KW - Imitation

KW - Innovation

KW - Lead-time

KW - CAPACITY

KW - MYTH

KW - SEARCH

KW - PERFORMANCE

KW - FIRMS

KW - MODEL

KW - CAPABILITY

KW - STRATEGIES

KW - IMPACT

KW - DEVELOPMENT SPEED

UR - http://www.scopus.com/inward/record.url?scp=85085880616&partnerID=8YFLogxK

U2 - 10.1108/JIC-07-2019-0187

DO - 10.1108/JIC-07-2019-0187

M3 - Journal article

AN - SCOPUS:85085880616

VL - 21

SP - 709

EP - 726

JO - Journal of Intellectual Capital

JF - Journal of Intellectual Capital

SN - 1469-1930

IS - 5

ER -