Markets for Technology and the Importance of Firm-Specific Search for Innovation Performance

Wolfgang Sofka, Christoph Grimpe

    Research output: Contribution to conference › Paper › Research › peer-review

    Abstract

    Firms rely increasingly on external knowledge, e.g. from universities, to improve their innovation performance. Existing research models the acquisition of knowledge either as a firm-specific search or a purchase on markets for technology. The former implies that a firm chooses and develops relationships with knowledge sources while the latter suggests a transaction governed by markets. We argue that both mechanisms increase a firm’s innovation performance but that they are interrelated. While on the firm level firm-specific search and acquisitions on markets for technology complement each other, the costs of firm-specific search are only justified in underdeveloped markets. Otherwise, market transactions provide higher efficiency and flexibility. This negative cross-level interaction effect is stronger the more knowledge in an industry is covered by markets for technology. We test and support these hypotheses for a sample of 2131 German firms.
    Original languageEnglish
    Publication date2014
    Number of pages40
    Publication statusPublished - 2014
    EventThe Academy of Management Annual Meeting 2014: The Power of Words - Philadelphia, United States
    Duration: 1 Aug 2014 → 5 Aug 2014
    Conference number: 74
    http://aom.org/annualmeeting/

    Conference

    ConferenceThe Academy of Management Annual Meeting 2014
    Number74
    CountryUnited States
    CityPhiladelphia
    Period01/08/2014 → 05/08/2014
    Internet address

    Bibliographical note

    CBS Library does not have access to the material

    Cite this

    Sofka, W., & Grimpe, C. (2014). Markets for Technology and the Importance of Firm-Specific Search for Innovation Performance. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.
    Sofka, Wolfgang ; Grimpe, Christoph. / Markets for Technology and the Importance of Firm-Specific Search for Innovation Performance. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.40 p.
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    Sofka, W & Grimpe, C 2014, 'Markets for Technology and the Importance of Firm-Specific Search for Innovation Performance' Paper presented at, Philadelphia, United States, 01/08/2014 - 05/08/2014, .

    Markets for Technology and the Importance of Firm-Specific Search for Innovation Performance. / Sofka, Wolfgang; Grimpe, Christoph.

    2014. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.

    Research output: Contribution to conference › Paper › Research › peer-review

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    T1 - Markets for Technology and the Importance of Firm-Specific Search for Innovation Performance

    AU - Sofka, Wolfgang

    AU - Grimpe, Christoph

    N1 - CBS Library does not have access to the material

    PY - 2014

    Y1 - 2014

    N2 - Firms rely increasingly on external knowledge, e.g. from universities, to improve their innovation performance. Existing research models the acquisition of knowledge either as a firm-specific search or a purchase on markets for technology. The former implies that a firm chooses and develops relationships with knowledge sources while the latter suggests a transaction governed by markets. We argue that both mechanisms increase a firm’s innovation performance but that they are interrelated. While on the firm level firm-specific search and acquisitions on markets for technology complement each other, the costs of firm-specific search are only justified in underdeveloped markets. Otherwise, market transactions provide higher efficiency and flexibility. This negative cross-level interaction effect is stronger the more knowledge in an industry is covered by markets for technology. We test and support these hypotheses for a sample of 2131 German firms.

    AB - Firms rely increasingly on external knowledge, e.g. from universities, to improve their innovation performance. Existing research models the acquisition of knowledge either as a firm-specific search or a purchase on markets for technology. The former implies that a firm chooses and develops relationships with knowledge sources while the latter suggests a transaction governed by markets. We argue that both mechanisms increase a firm’s innovation performance but that they are interrelated. While on the firm level firm-specific search and acquisitions on markets for technology complement each other, the costs of firm-specific search are only justified in underdeveloped markets. Otherwise, market transactions provide higher efficiency and flexibility. This negative cross-level interaction effect is stronger the more knowledge in an industry is covered by markets for technology. We test and support these hypotheses for a sample of 2131 German firms.

    KW - Knowledge search

    KW - Market for technology

    KW - Innovation

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    Sofka W, Grimpe C. Markets for Technology and the Importance of Firm-Specific Search for Innovation Performance. 2014. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.