Internal Capabilities and External Knowledge Sourcing for Product Innovation in LMT SMEs

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Harold Alvarez
Paul Iske

Abstract

Low- and medium-tech small and medium-sized enterprises (LMT SMEs) constitute a large and important segment in European economies. Because of increasingly international competition, LMT SMEs must rely on innovation to strengthen their competitive position over time. In this study, we empirically analyze possible complementarity or substitutability between internal capabilities and external knowledge sourcing. Using a short panel of 142 Dutch LMT SMEs, we find empirical evidence that suggests a negative interplay between internal capabilities and external knowledge sourcing.

Article Details

Author Biography

Harold Alvarez, Maastricht University

PhD candidate

Department of Organization & Strategy

School of Business and Economics

Maastricht University