Academic journal article Innovation: Organization & Management

Technological Innovation Capability, Knowledge Sourcing and Collaborative Innovation in Gulf Cooperation Council Countries

Academic journal article Innovation: Organization & Management

Technological Innovation Capability, Knowledge Sourcing and Collaborative Innovation in Gulf Cooperation Council Countries

Article excerpt

(ProQuest: ... denotes formulae omitted.)

Innovation is defined as the creation of new knowledge and ideas to facilitate business outcomes, processes and structures and creates new products and services (Du Plessis, 2007). Technological innovation refers to be a kind of improvements and modifications of existing technologies, and creating of new technologies. It is driven by the creation of knowledge and knowledge creation is perceived as one of major assets (Pei, 2008). Through creating and using knowledge effectively, an organization is able to innovate faster and more successfully (Cavusgil, Calantone, & Zhao, 2003). Innovation management allows organizations to respond to an external or internal opportunity, and use its creative efforts to introduce new ideas, processes or products (Kelly & Kranzburg, 1978). Innovation is not only inertial, but also is influenced by external might be collaborations and knowledge spillover effect, therefore connecting with other countries, different industries or inter-firms is important for a firm to enhance performance (Dodgson, Mathews, & Kastelle, 2006).

Literature of innovation management is also broadly divided by the emphasis on the importance of exploiting internal knowledge which has been existed in the organization and exploring external knowledge which is acquired from outside the organization to precede innovation. Lieh ten thaler (2011) has indicated prior studies have focused on intra-firm innovation, external knowledge acquisition has been neglected. The importance of external sources of knowledge for innovation has been increasingly highlighted in the theories of organizational learning, open innovation and knowledge spillover (Branstetter, 2006; Cefis & Marsili, 2005; Chesbrough, 2006; Leiponen & Helfat, 2011; Ronde & Hussler, 2005). Many scholars have acknowledged the possible important impact of knowledge externalities on the innovation processes (Arrow, 1962; Scherer, 1982). This study focuses on investigating the effect of external knowledge sources on technological innovation capability.

Knowledge associates organizational resources and generates new ones, including new products, services, technologies, or managerial systems (Bell, 1973; Machlup, 1980); this ensures that organizations would have competitive sources for creating wealth and sustaining growth continually (Pei, 2008). Competitive advantage in the knowledge economy is largely dependent on innovation, where external collaboration often leads to innovation. External knowledge sources brought about by collaborative innovation, as complementary resources, have proven to be helpful for enhancing innovation performance in hightechnological industry (Cassiman & Veugelers, 2006; de Man & Duysters, 2005). A review of collaborative innovation literature demonstrates there is a positive and significant relationship between collaborative innovation and innovation performance (Mohamed & Rickards, 1996). In order for the outcome of collaborative innovation to be as expected without being exploited by the collaborative partners, the problem of'collaborating with whom' is a critical issue to investigate (Faria, Lima, & Santos, 2010). Types of collaborative innovation could be distinguished as intra-national collaborative innovation and international collaborative innovation.

To enhance economies of Arab states and promote to unity within Arab states, a political and economic union of the Arab states bordering the Persian Gulf and located on or near the Arabian Peninsula (Gulf Cooperation Council - GCC) has been established. GCC is a newly developed economic region in the world, being established by six countries in 1981, including the United Arab Emirates, Kingdom of Bahrain, Kingdom of Saudi Arabia, Sultanate of Oman, State of Qatar and Kuwait. Oil or gas were not always reliable sources of wealth, especially while energy prices were falling, GCC budgets were in deficit with their debt increasing. …

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