External knowledge sourcing, knowledge management capacity and firms' innovation performance: evidence from manufacturing firms in Thailand

Abstract

Purpose This study aims to examine the effects of external knowledge sourcing breadth and depth and explore whether there exists a complementary effect of breadth (or depth) and knowledge management (KM) capacity on firms’ innovation performance. Specifically, this study investigates the direct effects of breadth, depth and KM capacity on product and process innovation outcomes and tests whether complementary effects exist between breadth and KM capacity and between depth and KM capacity. Design/methodology/approach This study uses the survey data of 302 manufacturing firms in Thailand and uses ordinal regression analysis to test the hypotheses empirically. Findings Regression results reveal that breadth and KM capacity are essential for enhancing firms' innovation performance, while depth is not significant. However, the authors do not find a significance of complementary effects between breadth and KM capacity and depth and KM capacity on firms’ innovation performance. Originality/value This study provides additional evidence to contribute to an ongoing debate on what knowledge sourcing strategies (breadth or depth) are significant for enhancing firms’ innovations. Moreover, it explores whether complementary effects between KM capacity and breadth/depth exist in determining firms' innovation performance, which is a neglected issue in the existing literature.

Firm-Level Innovations in an Emerging Economy: Do Perceived Policy Instability and Legal Institutional Conditions Matter?

“…We argue that the weak institutional frameworks in transitional economies such as Thailand largely account for the inability of the courts or legal institutions to effectively promote firm-level innovations. Our result on the weak judicial system's inability to influence innovations is supported by other previous studies in other emerging economies such as [80][81][82]. In line with the existing previous literature, this study finds that policy instability negatively influences non-technological innovation.…”

“…The results show that just 4% of these firms reported engaging in R&D activities. The low level of R&D and its related activities among Thai firms is confirmed by other related studies [80].…”

Analysis of Human Development, Economic Growth and Income Inequality in SAARC Country

“…Inter-organizational learning got importance in the nineteen fifties when there was an on-going discussion between behaviourists and economists (Tippakoon, Sang-Arun, & Vishuphong, 2022). Economic models of the organizations had become dominant during and after the World War II, nevertheless many researchers, mainly those with a behaviourist orientation, were not satisfied with those models (Hardt, 2001;Stella, 2012b).…”

How knowledge-based HRM practices and market turbulence foster organizational innovation capability: a two-path mediating role of knowledge sharing

“…Second, Thailand is considered as an emerging market with the economic growth rate relatively high and stable, Thai firms are still facing many difficulties and are quite sensitive to changes in technology and innovation (Apaitan et al ., 2022; Tippakoon et al ., 2023). The majority of firms in developing countries like Thailand are small and medium-sized and lack the capital, resources and R&D capabilities to innovate (Than et al ., 2023; Tippakoon et al ., 2023). Thus, improving innovation competence for firms through huge investments in technological innovation is not feasible.…”

“…Thus, improving innovation competence for firms through huge investments in technological innovation is not feasible. These conditions pose a greater motivation and challenge to explore less costly factors that can successfully foster innovation by firms in developing countries compared with those in developed nations (Bencsik et al ., 2016; Gui et al ., 2024; Tippakoon et al ., 2023). The findings of this paper have, therefore, implied that focusing on KHRM practices to stimulate the willingness of employees to share tacit and explicit knowledge seems to be one of the most optimal and effective strategies for firms in developing countries to foster innovation competence.…”