Did the global financial crisis impact firms' innovation performance? The role of internal and external knowledge capabilities in high and low tech industries

This paper examines the role exerted by internal innovation efforts and external knowledge assets as dynamic capabilities to overcome adverse economic conditions. Additionally, we examine the differential impacts of the financial crisis in high and low-tech industries. Using panel data of manufactur...

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Bibliographic Details
Published in:Technological forecasting & social change 2018-07, Vol.132, p.92-104
Main Authors: Zouaghi, Ferdaous, Sánchez, Mercedes, Martínez, Marian García
Format: Article
Language:English
Subjects:
Companies
Economic conditions
Economic crisis
External knowledge resources
Financial crisis
Human capital
Innovation performance
Innovations
Internal capabilities
International finance
Knowledge
Knowledge bases (artificial intelligence)
Knowledge management
Manufacturing
Organizational effectiveness
Panel data
R&D human capital
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Summary:This paper examines the role exerted by internal innovation efforts and external knowledge assets as dynamic capabilities to overcome adverse economic conditions. Additionally, we examine the differential impacts of the financial crisis in high and low-tech industries. Using panel data of manufacturing firms in Spain for the period 2006–2013, our results show that maintaining strong internal and external knowledge capabilities enables firms to mitigate the effects of the financial crisis. Findings emphasize the value of human capital, by enabling internal capabilities, as a coping mechanisms in low-tech sectors during the financial downturn. Similarly, open innovation allows firms to minimise the resources limitations and risk surrounding innovation, particularly during the financial crisis. This study provides valuable insights to managers aiming to develop strong internal knowledge bases to remain competitive under uncertain financial conditions. •Firms with stronger internal resources are more resilient in financial crisis.•High- and low-tech industries require different types of innovation resources.•Human capital is crucial in decreasing the effects of the crisis in low-T firms.•R&D and dynamic capability can help high-T firms to improve performance.
ISSN:0040-1625
1873-5509
DOI:10.1016/j.techfore.2018.01.011