The Innovation Impacts of Knowledge Exchanges within and Across Connected Firms

Tomohiro Machikita, Yasushi Ueki

    Research output: Contribution to conferencePaperResearch


    This paper examines whether firms consider adopting cross-functional teams as a device of transforming external information to innovation or upgrading. While addressing the difference between firms with cross-functional teams and
    without teams, we examine the effects of complementarities between internal and external resources on product innovation and product-level creative destruction, using survey data on enterprises' self-reported customers and
    suppliers of manufacturing in Indonesia, the Philippines, Thailand, and Vietnam. The firms with cross-functional teams are more likely to have higher impacts of exchanging engineers on product innovation and destruction. We use the
    interaction terms between teams and exchanging engineers as an instrumental variable for acquiring information on the past failure experience of other firms, explaining the higher level of product innovation and replacement. Product
    innovation and replacement need a wider sharing of outside knowledge within a firm.
    Original languageEnglish
    Publication date2012
    Number of pages31
    Publication statusPublished - 2012
    EventThe DRUID Society Conference 2012 on Innovation and Competitiveness: Dynamics of Organizations, Industries, Systems and Regions - Copenhagen Business School, Frederiksberg, Denmark
    Duration: 19 Jun 201221 Jun 2012


    ConferenceThe DRUID Society Conference 2012 on Innovation and Competitiveness
    LocationCopenhagen Business School
    Internet address

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