The importance of internal knowledge generation and external knowledge sourcing for SME innovation and performance: Evidence from Ireland

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dc.contributor.authorDoran, Justin
dc.contributor.authorMcCarthy, Nóirín
dc.contributor.authorO'Connor, Marie
dc.date.accessioned2022-09-07T09:33:31Z
dc.date.available2022-09-07T09:33:31Z
dc.date.issued2019-01-14
dc.date.updated2022-09-07T09:22:40Z
dc.description.abstractThis paper analyses the knowledge sourcing, transformation, and exploitation stages of the innovation value chain for a sample of Irish small to medium sized enterprises (SMEs) using Community Innovation Survey data. It explores the role of internal research and development (R&D) and external knowledge on SMEs’ innovation and performance. The open innovation paradigm, which stresses the importance of external linkages, is used to examine the impact of different external knowledge sources on SMEs’ innovation. The consideration of external linkages in the innovation performance of SMEs is crucial as these firms may be constrained in their ability to perform R&D due to their size. The analysis expands the traditional CDM methodology beyond the consideration of research and development as the sole source of knowledge for innovation by also considering a range of potential external knowledge sources. The findings indicate that SMEs generate knowledge internally through the performance of R&D, while also exploiting linkages to external agents. However, the impact of external sources of knowledge is not uniform. The results suggest that backward linkages have a positive impact on SME product innovation, but negatively affect SME process innovation, while public knowledge sources are positively related to the probability of product innovation occurring. This may have important policy implications. Finally, process innovation is also found to be a key determinant of SME productivity, while product innovation has no impact on SME performance.en
dc.description.statusPeer revieweden
dc.description.versionAccepted Versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.articleid1950069en
dc.identifier.citationDoran, J., McCarthy, N. and O'Connor, M. (2019) 'The importance of internal knowledge generation and external knowledge sourcing for SME innovation and performance: Evidence from Ireland', International Journal of Innovation Management, 23(7), 1950069. doi: 10.1142/S1363919619500695en
dc.identifier.doi10.1142/S1363919619500695en
dc.identifier.eissn1757-5877
dc.identifier.issn1363-9196
dc.identifier.issued7en
dc.identifier.journaltitleInternational Journal of Innovation Managementen
dc.identifier.urihttps://hdl.handle.net/10468/13545
dc.identifier.volume23en
dc.language.isoenen
dc.publisherWorld Scientific Publishingen
dc.rights© 2019, World Scientific Publishing Company. Electronic version of an article published as: Doran, J., McCarthy, N. and O'Connor, M. (2019) 'The importance of internal knowledge generation and external knowledge sourcing for SME innovation and performance: Evidence from Ireland', International Journal of Innovation Management, 23(7), 1950069. doi: 10.1142/S1363919619500695en
dc.subjectInnovation value chainen
dc.subjectExternal interactionen
dc.subjectR&Den
dc.subjectSME innovationen
dc.titleThe importance of internal knowledge generation and external knowledge sourcing for SME innovation and performance: Evidence from Irelanden
dc.typeArticle (peer-reviewed)en
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