Effect of different types of knowledge intensive business services on innovation and performance

Abstract

In recent years, firms have increasingly used knowledge services provided by knowledge-intensive business services (KIBS), but evidence on their impact on customer outcomes is mixed. To explain these mixed findings, this research proposes two explanations: The mediating role of knowledge integration capability (KIC) and the differential impact of different types of KIBS. KIBS can be of different types: professional (P-KIBS), research and development (R&D-KIBS) and information and communication technology (ICT-KIBS). To test the hypotheses of the research model, data from 368 firms in a developing country (Ecuador) were collected using PLS-SEM software. The results show that the effect of KIBS use on customer performance is a more complex relationship than might be expected a priori, as it depends on several factors. First, the effect of P-KIBS on customer performance is mediated by the knowledge integration capability of the customer firm. Second, the effect of R&D-KIBS on innovation performance is direct but does not affect overall performance. Third, the results indicate that ICT-KIBS do not have a significant effect on customer performance. The analysis of these results indicates the need for further studies to understand the complexity underlying this relationship.