Purpose – We develop an agent-based model to reproduce the processes of link formation and knowledge exchange in a Research and Development (R&D) inter-organizational network. Methodology – In our model, agents form links based on their network features, i.e. their belonging to one of the network’s circles of influence and their previous alliance history, and then exchange knowledge with their partners, thus modifying their positions in a metric knowledge space. Furthermore, we validate the model against real data using a two-step approach. Through the Thomson Reuters SDC alliance dataset, we estimate the model parameters related to the link formation, thus reproducing the topology of the resulting R&D network. Subsequently, using the NBER data on firm patents, we estimate the parameters related to the knowledge exchange process, thus evaluating the rate at which firms exchange knowledge and the duration of the R&D alliances themselves. Originality – The underlying knowledge space that we consider in our real example is defined by IPC patent classes, allowing for a precise quantification of every firm’s knowledge position. Our novel data-driven approach allows us to unveil the complex interdependencies between the firms’ network embeddedness and their technological positions. Through the validation of our model, we find that real R&D alliances have a duration of around two years, and that the subsequent knowledge exchange occurs at a very low rate. Most of the alliances, indeed, have no consequence on the partners’ knowledge positions: this suggests that a firm’s position – evaluated through its patents – is rather a determinant than a consequence of its R&D alliances. Finally, we propose an indicator of collaboration performance for the whole network. We find that the real R&D network does not maximize such an indicator. Practical implications – Our study shows that there exist configurations that can be both realistic and optimized with respect to the collaboration performance. Effective policies to obtain an optimized collaboration network – as suggested by our model – would incentivize shorter R&D alliances and higher knowledge exchange rates, for instance including rewards for quick co-patenting by allied firms.

Purpose – Industrial symbiosis networks (ISNs) are collections of long-term symbiotic relationships among firms, involving physical exchanges of materials and energy as well as the exchange of knowledge, concurrently providing environmental and economic benefits. Our aim is to investigate the complexity of ISNs adopting a similar approach to that developed by Hidalgo and Hausmann (2009) to measure the country economic complexity. In particular, we define a complexity index measuring the economic complexity of the firms involved in an ISN and provide some applications to real case studies. Design/methodology/approach –We define two matrixes, one identifying the waste each firm produces, and the other mapping the wastes each firm uses. Using these matrixes, we compute four indexes: 1) the diversity index of the firm producing wastes exchanged; 2) the diversity index of the firm using the wastes; 3) the ubiquity index of the waste exchanged in terms of number of the firms producing it; and 4) the ubiquity index of the waste exchanged in terms of number of the firms using them. A overall firm complexity measure is defined by using these indices. Originality/value – This paper made a methodological advance in the study of complexity within ISNs by applying an economic complexity approach. Complexity of ISNs is a fundamental property of the system, because it allows adaption and emergence useful to improve performance, which thus should be exploited rather than reduced. The approach proposed here allows the firm complexity to be assessed in a simple manner, without requiring high computational efforts like in other methods developed in the literature, but at the same time in a rigorous way, because the main driver of the economic complexity is taken into account. Practical implications – The study provides a rating of firms in a ISN based on the complexity index, which is useful to identify the most critical firms in terms of impact on the network resilience. The higher the firm complexity, the higher the risk that the firm unavailability due to a disruptive event can cause problem for the survival of the ISN.

This paper empirically investigates the effect of local and global network measures on interest rate spreads in the e-MID interbank market. We hypothesize that not only the bank’s position in the network is important, but also the counterparty’s interconnectedness. The empirical results in this paper show that interbank spreads are significantly affected by the banks positioning in the network, measured by both local and global connectedness measures. Overall, lenders are willing to pay a premium (i.e. obtain lower rates) for better connections in the network, at both local and global measures. This effect is statistically significant for the pooled sample and for post-Lehman’s Brothers collapse sub-period. Borrowers, on the other hand, pay a higher premium (i.e. higher rates) for better local connections, but significantly benefit for better global positioning.

Purpose – This paper aims to provide a qualitative analysis of the end result of the design and implementation process of a vehicle pooling platform. It analyzes Creativity vs Knowledge interaction patterns in the innovation process under the four different perspectives proposed in the theoretical framework of the CKI model (Palmieri and Giglio, 2013; Palmieri and Giglio, 2014). It aims to identify determining factors and impacts of the technology platform at urban, regional or national level. This application of the CKI model is geared to prove how its comprehensive slant supports the design, monitoring and assessment of innovation plans. Design/methodology/approach – This work is based on a case study approach and on a qualitative research involving literature review activities. Its design is compliant with the theoretical framework of the CKI model in order to identify the aforementioned four perspectives and capture the outcomes of the innovation process for all possible stakeholders. It utilizes a mixed methodology consisting of a panel of experts, geared to perform a qualitative assessment of the magnitude of impacts of the entrepreneurial initiative, and the participation observation methodology, for a complementary analysis of interaction patterns throughout the process. Originality/value – The study proposes a very recent theoretical framework to analyze entrepreneurial initiatives with a broader perspective than the prevailing one in literature. Applying the CKI model to the case study at hand proves how deep can be the impacts of a start-up initiative and helps deepening the impacts of Creativity vs Knowledge interaction patterns at the initial stage of the innovation process. Moreover, it provides a hitherto unexplored methodological approach consisting of a complementary analysis of interaction patterns in innovation processes by mixing the participation observation and the panel of experts methodologies. Practical implications – The end result of this study shows the real-world impacts of such a research project focusing on the value creation for different stakeholders and the community as a whole. It deepens also how Creativity vs Knowledge dynamics play as determinants and affect the end result of the innovation process. This work includes also a methodology tool for scholars since it is endowed with two complementary approaches – i. e. participation observation and panel of experts. Finally, this paper provides scholars with the first guide about the application of the CKI in order to conduct similar studies in other contexts.

Purpose – The aim of this paper is to present a research framework to investigate the behaviour of a Special Purpose Entity (SPE), i.e. a temporary project company, in the delivery of a megaproject, and, particularly uncover critical factors affecting the megaproject performance. Design/methodology/approach – The framework adopts a systemic knowledge-based perspective to construct the complex network of variables of the project governing system coordinated by the SPE. Fuzzy Cognitive Maps (FCMs) are used to elicit knowledge from expert and identify concepts and relationships associated to the variables of the SPE project governing system. Several scenarios are generated by performing FCM simulation. Originality/value –The proposed research framework allows dealing with the particular nature of uniqueness and complexity of infrastructure megaprojects by adopting a “case-based systemic” research approach to the study of the SPE and its project governing system that does not simplify, but rather preserves these project characteristics, and, in the same time, takes into account environment and context factors. Practical implications – The simulation output has showed that the contractor(s) technical capability, the SPE project management and planning capability and the SPE technical capability are important variables of the SPE governing system which influence project performance. Because of its flexibility, the framework can be used to model the project governing system coordinated by the SPE at different stages of the megaproject lifecycle, thus identifying the more important features and functions of the different SPE configurations.

Which are the tensions between social and economic goals in a corporate’s objectives and how can they be solved? Does voluntary disclosure really satisfy the informational needs of stakeholders and how can it be developed? Which are the instruments of Government and how should they use them to improve the ‘sustainability’ efforts of corporations? Which is the importance of managers’ ability to manage cultures in the mission to pursue economic benefits caring about the expectations of their social context of reference? Would a firm act in the same way in two different contexts? Do definitely “responsible” behaviours help some firms in outperforming others? Attempting to answer all those questions, CSR literature has shown critical knowledge gap in the lack of production of a multilevel research that is capable of integrating institutional, organizational and individual levels of analysis in a unique synoptic review. The aim of this work is thus to give a multilevel overview of the key concepts regarding CSR, with the goal of understanding the underlying links that allow firms to act more or less responsibly in a given context of culture, regulations and competitive introducing a framework of analysis that can be useful for a broad audience of scholars and policy-makers that want to inspect on the CSR-financial performance link and the CSR management practices. The article, indeed, proposes a new framework that puts simultaneously at the centre of any analysis: 1) the role of managers and their discretion; 2) the cultural background of the context wherein their firm operates; 3) the role of Governments. This paper is structured as follows: I first briefly review the literature on the concept of CSR, focusing on the link between Corporate Social Performance and Corporate Financial Performance, underlining competing perspectives and the effects of CSR on the various categories of stakeholders. In the following part, I bring into focus the theme of environmental and social accounting, in order to analyse the reasons, the ways and the limits of voluntary disclosure’s processes that corporations need to put in action in order to communicate to all the stakeholders their own ‘sustainable’ actions. In the last part, I concentrate on the role of Governments as institutes of control and providers of clear points of orientation in order to force companies to be more active with regard to voluntary sustainability activities. Summing up, I provide conclusions and implications through which I expect to contribute to the debate about the link between CSR and a firm’s overall performance. Keywords: Corporate Social Responsibility – CSR; Corporate Performance; Management; Voluntary disclosure; Governance;

Purpose This work develops a novel model, which integrates different research traditions on the intangible resources and capabilities of organizations. We elaborate the construct of optional capital, viewed as the expected outcome of a successful mobilization of the other intangibles. Optional capital measures the (i) sustainability and (ii) potential benefits of the latent capabilities, i.e. the further primary capabilities that the organization has the opportunity to develop and that, although possibly useless at present, may become crucial in the future. We argue that the organizations with a better optional capital portfolio are likely to display higher levels of organizational resilience and long-term competitive excellence in turbulent business environments. Design/methodology/approach – We develop the Optional Capital View (OCV) on the basis of a qualitative research exploring the Italian community of the Contratti di Rete (business network contracts). This community addresses today’s turbulent economic scenario through innovative business networking. Thanks to the collaboration of this community, we selected and investigated 8 exemplary networks, involving 134 firms. Originality/value – Our findings suggest that optional capital can be continuously generated and regenerated only through the mobilization of the “primary level” of the intangibles, including knowledge capital, social capital, institutional capital, and primary capabilities. The healthy co-mobilization and interplay of these intangibles, thanks to the pivotal role of dynamic capabilities, allows the generation of a portfolio of options on the organization’s future capabilities. Our model may have relevant implications for the sister disciplines of strategic management, organization studies and business evaluation. Practical implications – Our analysis on the interviews and texts collected during our research allowed us to achieve an operationalizable definition of the construct of optional capital and its likely antecedents. This may contribute to the development of tools, such as guidelines, questionnaires and indicators, aimed to better understand and evaluate the role of intangible resources and capabilities in today’s scenario. Such tools would be useful both for firm leaders (entrepreneurs and managers) and business evaluation professionals (banks, venture capitalist, etc.)

Purpose – This paper aims at proposing a different path to understand the innovation processes within the organisations. Alternative to the prevailing paradigm, which considers innovation processes as moved by a systemic rationality, here a Situationist View of the Firm (SVF) is adopted. Our purpose is to contribute to the scientific debate on knowledge management and innovation management enriching it through different concepts – power, coalitional dynamics and institutional pressures – until now in shadow, if not absent at all. Design/methodology/approach – The paper compares two paradigms of the firm replacing in the foreground their epistemological roots. On one hand, the ‘unified approach’ – widely dominant in management studies – reifies the firm and interprets it as a collective entity, a “pre-determined system with respect to the actors”, which is divided into sub-systems at lower levels and is part of inclusive, higher-level systems. On the other hand, the ‘situationist view’ defines the firm as a “concrete system built by the actors” and qualifies it as a space of games, a space of interaction, negotiation and conflict among actors and their coalitions. Originality/value – The SVF can be seen as an element of originality, since it puts in evidence and focuses on the organisational power dynamics and the isomorphism processes aiming at gaining legitimation. Practical implications – First, the different insight into innovation processes allows to increase the number of managerial and decision-making patterns with schemes and models focused on negotiation-based strategies. Moreover, the link with some constructs of the neo-institutionalism framework, such as isomorphism and rationalizing myths, paves the way for a less naive approach on organisational dynamics that animates, in practice, the processes of innovation that may be the result of decisions aiming at legitimizing the organisation in relation to the institutions and other key players operating in an ‘organisational field’.

Purpose – Social Innovation has attracted the attention of both Scholars and Practitioners for the last years, but very little investigations are actually available about the drivers that lie upon the adoption of social innovative practices at “for-profit” firm’s level. This is particularly true with reference to culture and cultural diversities. According to the underlined gap, our paper aims to investigate the role of culture, and cultural diversities, in defining Corporate Social Innovation (CSI). Design/methodology/approach – The paper is theoretically grounded and based on an inductive approach. An extensive literary review about Innovation and Corporate Social Responsibility – as well as about their cultural drivers – has been carried to gain a wide understanding of CSI as a trade-off between firms’ innovative attitude and their propensity to reach social aims. Hofstede’s cultural model has been, finally, used to interpret the cultural insights of CSI in two different contexts, Italy and Iran. Empirical evidences have been collected thanks to the contribution of the University of Asham, Iran. They allow us to complete the theoretical considerations developed about Iranian firms’ social orientation. Originality/value – Our paper contribute to the literature improving about CSI by developing a more comprehensive knowledge and culturally-based understanding within a still unexplored field. Practical implications – Our paper will expand the ability of both Academics and Practitioners to recognize culture as key driver of CSI. In doing this, it opens up future exploitations about the way culture and cultural diversities may be managed in order to improve the effectiveness of firms’ innovative practices with reference to corporate and collective well-being.

Purpose – In hotels it is important to adopt both customer and service orientation. This implies not only responding to customer’s requests, but also striving to anticipate, recognize and meet customer needs and expectations. In order to obtain these objectives, structures, systems and people have to act simultaneously by creating a corporate culture focused on service orientation. This paper aims to explore the service orientation culture (SOC) construct and how managers develop it within their hotels by highlighting possible cultural differences. Design/methodology/approach – We propose a qualitative approach conducted by means of in-depth interviews to luxury hotels managers belonging to different countries. Originality/value – The findings emphasize the close relationship between customer and service orientation. In the luxury hotels considered in the study these concepts are inseparable because delivering successfully services to guests requires to meet, remember and anticipate their needs and expectations. This work also highlights the usefulness of videos and vignette to help hotel staff to remind how it needs to behave during some situations. Further, the propensity to SOC should vary according to the variety of target customers. Practical implications – The results suggest to hotel managers to develop SOC by investing in the creation of a service-oriented corporate culture (including corporate values, brand values, customer focus culture, traditions of national hospitality culture, golden rules), its communication within the hotel, as well as related employees’ training.

The paper outlines new challenges in tourism services market, caused by gradually increasing amount of senior travellers and proposes design of knowledge–based interactive model of this phenomenon. Finally we justify validity and show strategic usefulness of such tool for its entrepreneurial adopters. Tourism is important part of regional economy with economic and socio-cultural impacts. In this context one of the most discussed topics in European Union is social tourism. In practice, social tourism addresses senior citizens, young people, families and people with disabilities. Generally, it can be seen as an umbrella concept, incorporating many different types of initiative and public, private and third-sector stakeholders. Consequently, we analyse possibilities and limitations of senior tourism and its effects for destination. Resultant findings are transferred to computational model, where providers of services adjust their supply in accordance with existing and expected behaviour of senior travellers. To realistically formalize the suggested market structure altogether with internal characteristics of single market players in representationally transparent and computationally powerful way, we adopted agent based modelling (ABM) as the main implementation paradigm. Models, composed from artificial agents, are theoretically able to mimic any type of system. Main advantage of agents is that their characteristics are close to human understanding, so it is straightforward to describe processes or systems in terms of interacting agents. The utilization of agents in traffic or destination occupancy modelling is straightforward. Entities, moving and cumulating on real geographic background allow to analyse local throughputs and capacities in order to predict their future development. Such research focuses primarily on operational and tactical aspects of tourism. Contrariwise, we are interested mainly in strategic planning, which does not represent typical ABM task, particularly because of its inherently fragmented and limited view. On the other hand, our problem represents complex, decentralized and distributed environment with large involvement of subjective factors, where any kind of immature summarization could suppress strategically interesting patterns of emergent behaviour. We used realistic combinations of internal parameters, characterizing type of destination, supply of services and structure of travellers to setup the agents’ microworlds. Incoming tourists were addressed by general marketing, word of mouth or by their loyalty to destination or provider. With these configurations we performed and discussed different scenarios, focused on senior travellers. Our results suggest convenient types of destinations and business strategies from this target group point of view.

Purpose – The paper roots in the largely accepted definition of culture as set of experiences or life practices, and values. After criticizing the “culture of the protocol”, the paper develops a concept antithetical to it: the culture of variety, seen as necessary richness of the values endowment of the organizations that want to innovate and survive in complex contexts. Design/methodology/approach – The paper is rooted in the Viable System Approach (VSA) that conceives complexity as a cognitive subjective phenomena. According to the recent VSA lines of research, complexity depends on the information variety to face complexity; information variety is articulated in three dimensions: informative units, interpretative schemes and values. The last one (values) is just the cultural dimension and its nature (rich or poor in variety) deeply influences the cognitive capability of a system (individual or organization) in promoting, accepting or refusing the change. Originality/value – The VSA proposal to link information variety to values is new and it could lead to original insight in understanding the role of cultural values in promoting (or impeding) innovation in complex environment. Practical implications – The principle of requisite variety is a very concrete managerial principle: if an organization is not capable to change by adapting itself in response to external changes, it will not be able to survive. Here is a call for manager and researchers: a shift to a more flexible, open and responsible view of organizations, less focused on the ‘certainty’ of the structure and technology, and open to the unpredictable outcomes of the human side of the system’s dynamics which is essentially emergent in nature.

Purpose – This study aims to highlight the importance of relationship management especially in terms of knowledge management in SMEs. For this purpose, knowledge networks are highlighted, which are linkages between different knowledge sources in and outside the firm. They are essential to incorporate the knowledge of strategic customers and business partners into the knowledge base of SMEs and therefore contribute to the commercialization of knowledge-intensive products as well as services. Design/methodology/approach – In general, knowledge marketing supports the commercialization of firm’s knowledge. Several factors which are relevant for knowledge marketing have been analysed. Establishing relations and integrating knowledge of stakeholders are crucial for limited knowledge resources of SMEs. Since research and literature in the field of knowledge marketing (especially in SMEs) is still scarce, the authors regard a qualitative research approach as appropriate. The following multiple case study primarily based on semi-structured interviews and document analyses. Subsequently, all qualitative data were compared and interpreted. Originality/value – The knowledge base – internally or externally acquired – which constitutes the basis of a unique competitive advantage of firms in the software, in the numismatics or other knowledge-intensive industries can be expanded and utilized in a better way through knowledge networks. Particularly customers’ and business partners’ knowledge is relevant to knowledge-intensive firms, because these elements allow firms to acquire additional know-how, which can be utilized for product development, innovations, and other customers. Theoretical implications – This research paper contributes to knowledge marketing as well as SME literature since the empirical data collection was exclusively limited to SMEs. Hence, the necessity of relations to different stakeholders of SMEs in knowledge networks has been identified. These networks are one of the success factors for a holistic knowledge marketing approach of SMEs. The approach further implicates processes of knowledge utilisation and therefore supports to clarify ways of understanding the meaning of knowledge as sustainable, competitive advantage. Practical implications – The outcomes clarify the integration of strategic customer and business partner knowledge as well as the marketing of knowledge in knowledge-intensive industries. Here, establishing relations and utilizing knowledge networks are most encouraging success factors of knowledge marketing. When emphasizing on these particular factors of marketing activities, SMEs might positively influence the success of their own business in comparison to competitors. The consideration of these factors enables top level management to differentiate them by focusing on knowledge marketing.

Purpose – Considered that the boundaries between the firm and its surrounding environment are increasingly porous, allowing the use of both internal and external innovative ideas and commercial paths to create technological outcomes, this article aims to unveil both internal and external determinants of SME patenting. Design/methodology/approach – We propose an econometric approach based on a Hurdle Count Data Model which allowed us not only to overcome problems related to the count dependent variables often assuming zero values, but also to separate the willingness to patent from actual patenting. Originality/value – This methodology puts in evidence that an internal factor (i.e., human capital) significantly influences SMEs willingness to patent, while an external factor (i.e., collaboration with other firms) impacts on SME portfolio size. Differently from most studies in the area of IP management which adopt a macro level perspective and rely on secondary data (Candelin-Palmqvist et al., 2012), this paper assumes a firm-level approach and bases on primary data, which contributes to make it particularly distinctive. Practical implications – Results of our study highlight that SME innovativeness is positively influenced by human capital and external collaboration with other firms. Thus, human resource management could play an important role both in fostering employees’ awareness about IPR and their ability to exploit the knowledge they can acquire from external sources.

Purpose – The goal of this paper is to provide a survey of the scientific works existing in literature about the role of Intangible Assets in Open Innovation (OI) processes. This study aims at identifying: 1) the most significant issues addressed by researchers in the field of OI, giving specific reference to Intangible Assets; 2) the main results obtained so far in the field; 3) development and future directions of the research in this area. Design/methodology/approach – We have adopted a methodology that can be split into three separate phases: first, we have retrieved a large set of relevant publications by means of a keyword-based search from a scholar database. Second, we have identified a number of topics dealt within the selected literature. Third, we have created a hierarchical structure by grouping related topics into macro themes using the Latent Dirichlet Allocation (LDA). Originality/value – OI has become one of the most well-known concepts in Innovation Management studies. As a consequence, a great number of papers have been published in the last few years and several literature reviews have arranged this growing body of literature systematically. Also, a number of authors have underlined the importance of Intangible Assets for the success of OI strategies and the effectiveness of OI processes. This paper represents a first attempt to systematize the existing research on Intangible Assets in OI processes. The paper provides a clearer view of these issues and represents the first step in filling the research gap highlighted above. Practical implications – This paper has a number of implications not only for researchers, but also for practitioners. By means of this systematic literature review, it is possible to understand how firms effectively and efficiently participate in OI processes and how they can leverage their intangible assets to innovate and generate value. This paper tries to provide a more deep insight into the topic of intangible assets in OI by supporting firm managers and researchers in innovation management.

Purpose – This paper addresses the question of how clustering effect firms’ capabilities to innovate. In economic geography the traditional view has been that physical proximity within city-regions and being part of an industrial cluster are keys for the innovative capacity of firms. This view is echoed in the management literature which holds a strong belief in the concept of regional clusters. Clusters have been defined as “geographical concentrations of interconnected companies and institutions in a particular field” (Porter 1998). According to Porter, being localized in a cluster improves competitiveness by allowing firms easier access to specialized suppliers and employees; and by increasing firms’ capacity for innovation and productivity growth. However, in a globalizing world the superiority of local clusters should be questioned. Firms that successfully develop global pipelines to knowledge sources in distant locations often sidestep the risk of lock-in, associated with relying solely on local sources of information (Malecki 2010; Fitjar and Rodríguez-Pose 2011). Design/methodology/approach – This paper uses a specifically tailored survey carried out in 2013 of the geographical distance and scope of collaboration for innovation of 2002 firms located in the four largest Norwegian city-regions with the rest of the country as a separate category. Originality/value – We find that a majority of firms are located in regional clusters. However, locating in regional clusters is not the optimal strategy for firms to innovate. Belonging to a national cluster enhances the capability to market new products, and being part of an international business environment improves the capacity to launch radical or substantially new products. The contribution is threefold: Firstly, the comparison of the innovation performance of firms located inside regionally concentrated clusters with those located outside. Secondly, most prior studies, often case studies, have been limited to certain sectors or spatial agglomerations. Using a survey yields greater opportunities than case studies to generalize the findings. And finally, other studies often use patents as a measure of innovation, whereas the present study captures a much broader array of innovations Practical implications – Cluster policies to advance the capabilities to innovate in firms and regions may need to be revised. The policy of initiating and supporting predominantly regional clusters should be substituted, or at least complemented, by a more open and broader spatial approach. Managers may rethink the way their innovation processes are organized, and broaden their search for ideas and knowledge beyond the region they are located.

Purpose – Knowledge and innovation have always played a crucial role in economic and social development (Kefala, 2010). As enterprises are facing constantly transforming framework conditions knowledge and innovation continue to gain importance in research and practice as means to realise sound economic, social and ecologic development. As mere product or incremental process innovations are neither a guarantee for success nor sufficient to cope with the emerging information, knowledge and time-competition (Stern and Jaberg, 2010) and as business model innovation has received increasing attention in times of change (Chesbrough, 2010; Amit and Zott, 2010) the latter shall be investigated complementarily. Design/methodology/approach – Building up on the results of previous research (Kohl et al., 2014) derived measures to improve the enterprises’ innovation capability are analysed on the basis of 38 Intellectual Capital Statements. Furthermore, the data gained from a large scale survey among more than 1000 enterprises is analysed with regard to product as well as process innovation and are matched with the results gained from the analysis of the 38 ICS. Originality/value – The significance of intangible resources with regard to business success in general has evidently increased and may in some cases already be assessed as higher than the impact of tangible resources (Mertins et al., 2011; Kohl et al., 2014). This paper aims to draw conclusions on a broad empirical basis with regard to internal drivers of innovation and related differences between manufacturing and service enterprises. Practical implications – The analysis of the direct and indirect correlations between intellectual capital and innovation capabilities and the empirical foundation of these correlations allows sound statements regarding those intellectual capital factors, that should be focused by service and manufacturing enterprises to foster innovation. The examination of literature on intellectual capital and business model innovation builds the theoretical basis for future research with regard to those aspects and may show possible avenues for integrating business model innovation and intellectual capital management.

Purpose – Intangible resources are touted as powerful firm performance drivers. In order to compete successfully, a company must possess a rich knowledge-base and capabilities to use and develop it. Association between knowledge and firm performance has been a subject of active research, with the lion’s share of empirical evidence dealing with either intellectual capital or knowledge processes that exist even without managerial input. Literature on the relationship between deliberate and systematic managerial practices (KM practices) and firm performance is still quite novel. The purpose of this paper is to determine if there is a systematic association between KM practices and firm performance. Design/methodology/approach – This study recaps the research on KM practices and firm performance by systematically reviewing and analyzing the empirical KM literature. Originality/value – KM literature has been recapped numerous times before. However, this paper is the first effort to review and analyzes the literature in terms of KM practices and firm performance. The results will increase the understanding of potentially most effective KM practices which are associated with firm performance outcomes. Practical implications – The results of this study serve as a guideline for managers, who are dealing with the challenges related to resource optimization; it indicates the potentially most effective managerial practices that are associated with enhanced firm performance through improved management of knowledge resources.

Purpose –This paper argues that networked knowledge flows constitute the antecedences of knowledge-based value creation, and demonstrate that the knowledge flows themselves can be approximated by particular communication roles within the network. Our argument originates from intellectual capital and knowledge management concepts and infuses it with insights from the fields of management control systems and communication theory, emphasizing how specific communication roles are focal points in capturing knowledge value creation and its subsequent monetization. Building on the perspective of knowledge as a flow, and postulating that value is based on knowledge-in-use – rather than knowledge possession – this paper address the research question: How can we express knowledge in such a way that it can be monetized and opened up for specific managerial interventions? Design/methodology/approach – This is a conceptual paper where we selectively combine management control systems design with communication theory, and explain how the role of communication is the missing link between high-level knowledge resource management and instrumental approaches in capturing knowledge value and allowing for a connection with monetary value. Originality/value – The contribution of this paper consists of five propositions for future research on how management accounting and control systems can be brought to bear on knowledge management if the communication aspect is given primary attention. Practical implications – We identify two fundamental premises for the monetization of knowledge resources. First, in order to be valuable, knowledge resources need to be deployed and utilized rather then be merely possessed (owned). This resonates with intellectual capital research emphasizing the need to visualize and identify knowledge process rather than measuring and managing knowledge stocks and assets. Second, following a network argument, the communication of knowledge between network nodes, implies that monetization is based on designing, developing, maintaining, and growing boundary spanning individuals/teams in conjoint specific arenas that are tasked with knowledge value creation.

Purpose – This empirical paper explores how professional competences are defined and assessed by clients of professional service firms. Extant research has captured how the formal knowledge base of professionals establish and maintain the credibility and elite status of professionals. However, assessing professional competence is often difficult due to the knowledge asymmetry between clients and professionals and individual formal knowledge and firm reputation are commonly used as proxies. At the same time, there is surprisingly little empirical research that focuses directly on how knowledge resources are assessed from a client’s point of view. To address this disparity we ask: How is knowledge valuated and valued by clients of professional service firms? Design/methodology/approach – The study is based on an in depth qualitative research design suitable for inductive theory building. By building on observations from meetings in four in-depth case studies and interviews with 80 buyers and sellers of professional services, this paper describes how knowledge is assessed by clients. In particular, we compare and analyse this extensive qualitative data to single out important dimension of how clients assess professional competence. Originality/value –Value creation in PSFs has to an increasing degree been recognized as co-produced with clients and customized to their needs. Correspondingly, an interest in client-centric valuations have emerged. In spite of this, relatively limited research has been done to understand the client and competitive advantage from a client perspective in relation to professional competence. This paper offers such a client-centric perspective. By extending theory on professional service firms’ knowledge assets it provides a conceptual framework detailing important dimensions emphasised by clients when assessing professional knowledge. Practical implications – The paper offers a framework that details the interrelationships between knowledge, experience and references as assessed by the clients. This framework has implications for the practice of PSFs and buyers of professional services as it details the way in which clients evaluate and value knowledge. Contrary to extant research that emphasize organizational reputation and individual formal education as key indicators of professional knowledge, our study reveals that these are perceived as mere hygiene factors by clients. The study also shows how the clients assess knowledge assets based on multiple levels and factors.