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The Impact of External Search Strategy on Radical Innovation Performance  

Ahn, He Soung (Korea University Institute for Business Research and Education)
Kim, Juhee (Korea University Business School)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.13, no.2, 2018 , pp. 101-113 More about this Journal
Abstract
This paper investigates the relationship between external search strategy and radical innovation performance. As the discrepancies that can exist among the varying sources of external knowledge is overlooked, the existing literature on the effect of external search strategy on radical innovation performance remains inconclusive. This study aims to reconcile such mixed findings by recognizing that external knowledge can be distinctive depending on the environment in which its source is embedded in; specifically, this paper examines the relationship between external search strategy and radical innovation performance by distinguishing external search from 'market' and 'non-market' relationships. We test our hypotheses with a sample of 431 firms from the manufacturing industries from the 2010 STEPI survey. Our empirical findings suggest that external search strategy from market relationships positively influences radical innovation performance, while the influence of external search strategy from non-market relationships is found to be not significant. Our research suggests that in order to improve radical innovation performance, firms must be able to maintain a cooperative relationship with other actors connected with market relationships and to effectively exploit the market knowledge obtained from these actors.
Keywords
External search strategy; radical innovation; market relationship; non-market relationship;
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Times Cited By KSCI : 1  (Citation Analysis)
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