Capturing Value from Innovation in Knowledge‐Intensive Business Service Firms: The Role of Competitive Strategy
Year: 2018
Type: article
Abstract: Building on a problem‐solving perspective to value creation and capture, and on the business strategy literature, we argue that the actions that knowledge‐intensive business service (KIBS) firms take to identify, select and solve client problems will affect their approach to capturing value from innovation. We apply regression analysis to data from an original survey involving a sample of 230 innovations introduced by 150 publicly traded UK and US KIBS firms. Distinguishing between cost‐ and differentiation‐oriented KIBS firms, we find that cost‐oriented firms tend to place more importance on all appropriability mechanisms than do differentiation‐oriented firms. Furthermore, the perceived importance of formal appropriability mechanisms, relative to that of all appropriability mechanisms, tends to be higher for cost‐oriented than for differentiation‐oriented firms. This association is stronger for the case of the introduction of process (rather than product) innovation. These findings contribute to the strategy and service innovation literatures, by showing that KIBS firms’ competitive strategies influence value capture, over and above the role of the innovation‐, industry‐ and institutional‐level factors examined in earlier studies.
Source: British Journal of Management
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $1,845
Funders: Middlesex University, British Academy of Management, King's College London, National Research University Higher School of Economics, Research and Development Management Association, Engineering and Physical Sciences Research Council, Economic and Social Research Council, Alliance Manchester Business School, University of Manchester
OpenAlex ID: W2767339704