Knowledge Combination and Knowledge Creation in a Foreign-Market Network

Abstract

This article rests on the idea that knowledge is dispersed among different individuals and entities. For international entrepreneurial firms to create new knowledge, they need to find ways to combine these dispersed bits of knowledge. Because of the notion that resource constraints make international entrepreneurial firms dependent on external knowledge, it is assumed that a portion of knowledge combination takes place in networks. The purpose of this article was to investigate the prospective impact network knowledge and knowledge combinations have on entrepreneurial firms' knowledge creation. Three hypotheses are developed and tested in a structural equation model, using linear structural relations (LISREL, Scientific Software International, Inc.).

International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis

“…Early empirical work also shows that learning effort in international and domestic markets is positively influenced by the firm's EO and early entry in foreign markets . More recently, knowledge creation is discussed as an ongoing process during entrepreneurial internationalization (Tolstoy, 2009), with Casillas et al (2009) arguing that knowledge creation begins with the availability of prior knowledge and then a search for new knowledge. This is followed by the combination of prior and new knowledge and action.…”

Conceptualizing Innovation in Born-Global Firms

“…The knowledge-based view regards knowledge as the most important resource and firms as superior to individuals in creating knowledge (Tolstoy, 2009). Knowledge creation can be either gradual or radical depending on its degree of impact on a firm's capabilities.…”

“…According to Mort and Weerawardena (2006), the innovativeness of born-global firms is, among other things, expressed in their ability to develop networking capabilities in order to overcome their scarce tangible resources. One could argue, therefore, that the innovative behaviour of international entrepreneurial firms is stimulated by the degree of their engagement in networks (Tolstoy, 2009). There is a dialectical relation between networks and innovation, where network structure is shaped by innovations while the network structure contributes to firms' ability to innovate (Tolstoy, 2010 …”

Knowledge combination in networks: evidence from the international venturing of four small biotech firms

“…The relative freedom that firms may have to pursue their own goals in networks is, according to network theorists, determined by their flexibility and independence toward other network actors (Burt 1983). Hence, for firms to differentiate themselves from competitors, they have to question the status quo by continually recombining knowledge (Eisenhardt and Martin 2000;Teece et al 1997;Tolstoy 2009) Knowledge combination in networks Shane and Venkataraman (2000) suggest that the pursuit of opportunities of firms can be ascribed to two phases: The identification of opportunities and the implementation of opportunities. In this section, we incorporate these two phases into a framework to illuminate the concept of knowledge combination in networks (in the realm of international ventures).…”