ABS: DeCarolis, Impact of stocks and flows of organizational knowledge...

[Gretchen Whitney]

The impact of stocks and flows of organizational
knowledge on firm performance: An empirical
investigation of the biotechnology industry
DeCarolis DM, Deeds DL
STRATEGIC MANAGEMENT JOURNAL
20: (10) 953-968 OCT 1999

Document type: Article     Language: English     Cited
References: 82     Times Cited: 0

Abstract:
The knowledge-based view of the firm is a recent
approach to understanding the relationship between
Jinn capabilities and firm performance. Specifically,
this approach suggests that knowledge generation,
accumulation and application may be the source of
superior performance. Other research hers
conceptualized organizational knowledge in terms of
stocks of accumulated knowledge in the firm and flows
of knowledge into the firm. This paper tests the
relationship between stocks and flows of
organizational knowledge and firm performance in the
biotechnology industry. We suggest that a firm's
geographic location, alliances with other institutions
and organizations and R&D expenditures are
representative of knowledge flows, while products in
the pipeline, firm citations and patents are
indicative of knowledge stocks. Through factor
analysis, rye develop an aggregated measure of
location from several variables. A regression model
suggests that location is a significant predictor of
firm performance as are products in the pipeline and
firm citations. A major contribution of this
investigation is the operationalization of geographic
location and its statistically significant link to
firm performance.

Author Keywords:
stocks and flows of knowledge, biotechnology, firm
performance

KeyWords Plus:
INITIAL PUBLIC OFFERINGS, RESEARCH-AND-DEVELOPMENT,
RESOURCE-BASED VIEW, PHARMACEUTICAL-INDUSTRY,
COMPETITIVE ADVANTAGE, DYNAMIC THEORY, INNOVATION,
TECHNOLOGY, MARKET, SCIENCE

 EMAIL: decarold at drexel.edu
DeCarolis DM, Drexel Univ, Coll Business & Adm, 101 N
33rd St, Philadelphia, PA 19104 USA.
Drexel Univ, Coll Business & Adm, Philadelphia, PA
19104 USA.
Case Western Reserve Univ, Weatherhead Sch Management,
Cleveland, OH 44106 USA.


Publisher:
JOHN WILEY & SONS LTD, W SUSSEX

IDS Number:
240XY

ISSN:


Reprinted with permission.
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