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1 External knowledge modes and firm-level innovation performance: Empirical evidence from sub-Saharan Africa
حالت های دانش خارجی و عملکرد نوآوری در سطح شرکت: شواهد تجربی از کشورهای جنوب صحرای آفریقا-2020
This paper examines the significance of external knowledge sources as impacting factors on innova-tion by incorporating a variety of external sourcing strategies, the firm’s internal competencies and theindustry attributes, into a unique analytical framework in predicting the innovative capabilities of firmsin developing countries. The World Bank Enterprise and Innovation follow-up dataset for manufacturing,service and retail firms in 11 countries in sub-Saharan Africa is utilised to assess the degree to which firmsutilize external sources of information (customers, competitors, consultants, new employees and work-shops) in the implementation of product, process, marketing and organizational innovation. Sectoral andcountry-specific estimations are performed with IV binary treatment and Tobit models, respectively. Thefindings demonstrate that, although internal sources are essential, external sources of information arealso necessary to attain the desired level of innovativeness. These findings confirm the open innovationliterature in that firms that open their innovation process and utilise distinct knowledge sources havea superior capability to introduce innovations. The paper provides significant contributions to the lit-erature. The paper uncovers three sources of external knowledge linking indirect players in the marketthat are not common in the literature (consultant, new employees and workshop). The study shows thatthe baggage of knowledge inherent in these three sources is indeed essential to the innovative capabil-ities of the firms. Second, the results also reveal that the essentiality of external sources of knowledgediffers conditional on the type of innovation considered (product, process, marketing or organisational),dependent variable operationalisation, sectoral, methodical configurations, and country specifics. Third,the study contributes to the understanding of how firms in emerging economies develop competenciesfor innovativeness through the interplay of knowledge from both direct and indirect market players. Thefindings offer essential insights on how management could invest in the distinct, useful and preferredexternal sources to best foster a compelling introduction of any innovation. The study further providesrobust and novel evidence of the role of new consultants, employees and workshops on firms’ propensityto innovate.
Keywords: External knowledge modes | Innovation | Firm-Level | Developing countries | Competitors | Consultants | Customers | New employees | Workshops
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