Multicultural skills in open innovation: relational leadership enabling knowledge sourcing and sharing

PurposeIn this paper, the authors argue that multicultural skills and relational leadership act as enablers for open innovation, and thereby examine the process through which teams can utilize multicultural skills to support the development of relational leadership and knowledge sourcing and sharing (KSS) through individual interaction and relationship building. The authors address the following research question: How does relational leadership enable open innovation (OI) among employees with multicultural skills?Design/methodology/approachThis paper applies a multi-level approach (team and individual level) and builds on interviews with 20 employees, middle and senior managers with multicultural experiences, working in open innovation environments.FindingsThe authors’ findings shed light on the process through which social exchange relationships among team members (e.g. R&D teams) and knowledge exchange partners are enhanced by the use of multicultural skills and support the development of relational leadership to facilitate KSS and ultimately OI. The decision for participants to collaborate and source and share knowledge is motivated by individual reward (such as establishing network or long-lasting contacts), skill acquisition (such as learning or personal growth in decision-making) and a sense of reciprocity and drive for group gain. The authors encourage greater human resource (HR) manager support for relational leadership and the development and use of multicultural skills to promote KSS.Research limitations/implicationsDespite the value of our findings, this paper is not without limitations. The authors explained that the focus of this study design was on the work activities of the participants and their skill development and not specific projects or organizations. It was outside the scope of this study to examine variations across organizations and individuals as the authors wanted to focus on multicultural skills and relational leadership as enablers for OI. The authors recommend that future studies extend our research by unpacking how various boundary conditions including relational leadership and multicultural skills impact KSS and OI over the life cycle of innovation teams within large multinational organizations, across countries and ethnicities.Practical implicationsThe study’s findings provide managers with improved understandings of how to enable an individual's willingness and readiness to source and share knowledge through multicultural skills and relational leadership. Managers need to ensure that human resource management (HRM) practices celebrate multicultural skills and support relational leadership in innovation teams. The authors suggest managers engaged in OI consider the components of social exchange as described by Meeker (1971) and utilize reciprocity, group gain, rationality and status consistency to support the emergence relational leadership and KSS in innovation teams.Originality/valueIn this paper, the authors contribute to the dearth of literature on the boundary conditions for OI by examining the role of relational leadership and characteristics/skills of the workforce, namely multicultural skills and contribute to the scarce research on the role of employees with multicultural skills and their impact on OI and present multicultural skills/experiences and relational leadership as enablers for OI.

Effect of market versus nonmarket environmental policy stringency on knowledge sourcing behavior for green technology: evidence from OECD countries

Purpose The purpose of this paper is to examine firms’ knowledge-sourcing behavior in green technology development with respect to the home country’s market- vs nonmarket environmental policy stringency. Design/methodology/approach This paper empirically analyzes the effects of market and nonmarket environmental policy stringency on firms’ knowledge sourcing activity with patent data from OECD countries during 1991–2010, across five categories of green technologies. Findings When a nation establishes more stringent market environmental policies, firms likely source more international knowledge rather than domestic knowledge about green technology, up to a point. After that level, this balance shifts (inverted U-shaped curve) due to the risks associated with greater investment costs and commerciality. Nonmarket environmental policies instead should exhibit a positive, linear relationship with international relative to domestic knowledge sourcing. This study also reveals the dynamic roles of a firm’s green technological capability with market-based environmental policy stringency and a substitutive role of the capability with nonmarket-based environmental policy stringency. Research limitations/implications This study shows the effect of market and nonmarket environmental policy stringency on firms’ knowledge sourcing. The findings provide meaningful implications for policymakers regarding the optimal levels of market and nonmarket environmental policy stringency that will enhance their countries’ green technology development. Originality/value This paper enriches the literature of environmental policy and knowledge sourcing and offers the direction of future research of how environmental policy stringency influences a firm’s knowledge sourcing for green technology development.

From knowledge sourcing to firms’ productivity: investigating innovation value chain of Indonesian manufacturing firms

Purpose The purpose of this paper is to investigate the innovation value chain (IVC) that encompasses knowledge sourcing, transformation and exploitation activities among Indonesian manufacturing firms by using data from the Indonesia Innovation Survey. Design/methodology/approach A simple approach of single equation Probit model, Logit regression and Tobit regression are used in the first, second and third stages of IVC consecutively. Findings This study finds the existence of a synergistic relationship between internal and external sources of knowledge as well as among external sources of knowledge. In terms of the second link of the IVC, internal R&D plays an important role that positively influences knowledge transformation into all types of innovation and innovation success. External knowledge that has a similar pattern in shaping innovation mainly comes from market and open sources. Scientific institutions tend to contribute to innovation negatively, and few positive impacts on process innovation are observed from government R&D and non-profit R&D institutions. Informal knowledge is more likely to influence technological than non-technological innovation. Research limitations/implications Finally, the limitations of this study need to be acknowledged. Issues related to firms’ sectors have not been discussed in this study, and as a result, sectors’ effects on the three links of IVC cannot be detected. This study is a cross-sectional in nature, as a result, the dynamic of Indonesian manufacturing firms’ IVC is missing. Hence, future studies may address this limitation by conducting a longitudinal study. Originality/value This study is different from the previous IVC studies owing to the following reasons. Firstly, in this study, a broader source of knowledge is tested. Secondly, the wider innovation (technological and non-technological innovation) is also assessed.

Exploring redundancies in multichannel knowledge sourcing in high-technology industries

Purpose Scientific collaborations represent informal external ties that together with formal R&D alliances constitute a multichannel knowledge sourcing network in science-based industries. Although such multichannel knowledge sourcing benefits firms by providing more thorough access to external sources, it also entails potentially significant redundancies worthy of consideration. This paper aims to take a step by first verifying their existence, followed by an examination of key contingencies determining the extent of these redundancies, i.e. firm absorptive capacity, balanced utilization of ties and firm size. Design methodology approach This is an empirical study that uses scientific collaborations and R&D alliances of US pharmaceutical companies to test the proposed hypotheses. Findings This paper verifies the existence of multichannel knowledge sourcing redundancies, followed by an examination of key contingencies determining the extent of these redundancies, i.e. firm absorptive capacity, balanced utilization of ties and firm size. Originality value To the knowledge, this is a first attempt at clarifying redundancies in innovative knowledge sourcing and their implications for firm innovation performance.