Knowledge exchange types and strategies on the innovation interactions between KIBS firms and their clients in Taiwan

Figures & data

Table 1. The analysis of basic characterstics

Dependent Variables	Description: the technology innovation for the enterprise during 2007 to 2010.			Number(%)
Types of knowledge exchange with clients	- Codified knowledge as the major type			150(38.5)
	- Tacit knowledge as the major type			75(19.2)
	- Mixed knowledge as the major type			165(42.3)
Independent variables	Minimum	Maximum	Average	Standard deviation
Continuous variables
-Numbers of employee	1	3579	141.0	394.9
-Percentage of technology innovation over the revenue	0	55	8.8	16.4
-Percentage of knowledge workers over the total numbers of employee	1	80	18.6	10.6
-Usage of advanced technology	0	8	1.52	2.4
-Application of knowledge management	0	6	0.8	1.5
Class variables		N	%
-Strength of connection with clients		107	27.4
Strong connection		283	72.6
Weak connection
-Strength of knowledge sources
Market sources (strong/weak)		308/82	79.0/21.0
Research sources (strong/weak)		62/328	15.9/84.1
Information sources (strong/weak)		239/151	61.3/38.7
-Patent		197	50.5
Yes		193	49.5
No
-Size of enterprises ^a		311	79.7
Small		79	20.3
Large
Industry category (Industry category code)
Legal and Accounting Activities (69)		24	6.2
Activities of Head Offices; Management Consultancy Activities (70)		12	3.1
Architecture and Engineering Activities; Technical Testing and Analysis (71)		87	22.3
Advertising and Market Research (73)		43	11.0
Specialized Design Activities (74)		19	4.9
Other Professional, Scientific and Technical Activities (76)		22	5.6
Rental and Leasing Activities (77)		72	18.5
Employment Activities (78)		16	4.1
Travel agency (79)		18	4.6
Security and Investigation Activities (80)		17	4.4
Services to Buildings and Landscape Activities (81)		31	7.9
Business and Office Support Activities (82)		29	7.4

a: According to the standards established by Small and Medium Enterprise Administration, Ministry of Economic Affairs (2011), enterprises with no more than 100 employees are defined as small and medium-sized enterprises.

Table 2. The analysis of service industry using multinomial logistic regression (choosing codified knowledge as the reference category)

	Types of knowledge exchange with clients
	Tacit knowledge		Mixed knowledge
	β	EXPβ	β	EXPβ
Numbers of employee	.001	1.001	.001	1.002
Percentage of knowledge workers over the total numbers of employee	−.005	.995	−.003	.997
Percentage of technology innovation over the revenue	−.009	.991	.003	1.003
Usage of advanced technology	−.084	.919	−.214^**	.807
Application of knowledge management	.143	1.154	.302^**	1.353
Strength of connection with clients	−.742^**	2.101	−.363	1.438
Strength of knowledge sources
-Market sources	.280	.755	.158	.854
-Research sources	−.782	2.185	.028	.973
-Information sources	.438	.646	.207	.813
Patent applied	.025	0.976	−.402	1.495
Small and medium-sized enterprises	−.605	.546	−.170	.844
χ^2(df)	25.46(24)
Nagelkerke R^2	0.073

Note: ^*means the significance, p < .10; ^**means p < .05 Data sources: this study.

Table 3. The analysis of professional, scientific, and technical services using multinomial logistic regression (choosing codified knowledge as the reference category)

	Types of knowledge exchange with clients
	Tacit knowledge		Mixed knowledge
	β	EXPβ	β	EXPβ
Numbers of employee	.001	1.001	.001	1.001
Percentage of knowledge workers over the total numbers of employee	−.008	.992	−.012^**	.988
Percentage of technology innovation over the revenue	−.012	.988	.002	1.002
Usage of advanced technology	−.012	.988	−.205^**	.828
Application of knowledge management	.075	1.078	.383^**	1.467
Strength of connection with clients	−.980^*	1.802	−.443	1.557
Strength of knowledge sources
-Market sources	.637	.529	−.022	1.023
-Research sources	−.751	2.119	−.126	1.134
-Information sources	.126	.881	.227	.797
Patent applied	.147	.863	.169	.845
Small and medium-sized enterprises	-.497	.609	-.225	.799
χ^2(df)	21.27(24)
Nagelkerke R^2	0.113

Note: ^*means the significance, p < .10; ^**means p < .05 Data sources: this study.

Table 4. Analysis of supportive industry using multinomial logistic regression (choosing codified knowledge as the reference category)

	Types of knowledge exchange with clients
	Tacit knowledge		Mixed knowledge
	Β	EXPβ	β	EXPβ
Numbers of employee	.001	1.002	.001	1.002
Percentage of knowledge workers over the total numbers of employee	−.002	.998	.004	1.004
Percentage of technology innovation over the revenue	.015	1.015	.029	1.029
Usage of advanced technology	−.333^**	.717	−.293^**	.746
Application of knowledge management	.396	1.485	.280	.1323
Strength of connection with clients	−.588	1.801	−.356	1.427
Strength of knowledge sources
-Market sources	.189	.828	.180	.835
-Research sources	−.337	1.401	.465	.628
-Information sources	.899^**	.407	.151	.860
Patent applied	−.238	1.268	−1.013^**	2.754
Small and medium-sized enterprises	-.585	.557	.088	1.093
χ^2(df)	21.27(24)
Nagelkerke R^2	0.113

Note: ^*means the significance, p < .10; ^**means p < .05 Data sources: this study.

Table 5. Hypothesis testing

	Service industry	The professional, scientific, and technical services industry	Supportive industry
Hypothesis 1	Invalid	Invalid	Valid
Hypothesis 2	Invalid	Invalid	Invalid
Hypothesis 3	Invalid	Valid	Invalid
Hypothesis 4	Valid	Valid	Valid
Hypothesis 5	Invalid	Invalid	Invalid
Hypothesis 6	Invalid	Invalid	Invalid
Hypothesis 7	Invalid	Invalid	Valid
Hypothesis 8	Invalid	Invalid	Invalid

Sources: this study

Appendix I. Description of the variables

Variables	Variable Names	Description	Note
Dependent variables (types of knowledge exchange with clients)	CK knowledge as the major type	Did your company ever engage in technology innovation for (1) research innovation in the company, (3) acquiring technologies related to equipment and software, or (4) acquiring exterior knowledge for the 14^th question in the survey, during 2007 to 2010?	Dependent variables are determined according to whether CK and TK are selected. The dependent variables are set as CK if more than two options for CK knowledge and no options for TK are chosen, and tacit if opposite conditions occur. The dependent variables are defined as mixed if options are selected for both CK and TK, with at least 2 options selected for one type.
	Tacit knowledge as the major type	Did your company ever engage in technology innovation for (2) authorizing other companies or research institutes or (5) training R&D personnel for the 14^th question in the survey, during 2007 to 2010?
	Mixed knowledge as the major type	Did your company ever engage in technology innovation for (6) marketing activities for launching innovative products, (7) design activities for launching innovative products, or (8) other activities for preparation of innovation for the 14^th question in the survey during 2007 to 2010?
Independentvariables	Number of employees (sizes of enterprises)	The 36^th question in the survey: the number of employees in your company in Taiwan during 2007 to 2010.	(Number of employees in 2007 + the number of employees in 2010)/2 = average number of employees
	Percentage of knowledge workers over the total number of employees	The 37^th question in the survey: the percentage of employees with undergraduate degree or higher in Taiwan in 2010.
	Percentage of technology innovation over the revenue	The 16^th question in the survey: percentage of cost of technology innovation over the total revenue in 2010.
	Number of patents applied	The 24^th question in the survey: Has your company ever applied for a patent?
	Sizes of enterprises	The 36^th question: the number of employees of your company in Taiwan during 2007 to 2010.	(Number of employees in 2007 + number of employees in 2010)/2 = numbers of employees; Number of employees< 100 is defined as small and medium-sized enterprises. Number of employees> 100 is defined as large enterprise.
	Levels of advanced technology used	The 38^th question in the survey: does your company have the following skills? (1) Image design, composition, advertising; (2) design and services; (3) multimedia (integrating music, image, word, animation, photo); (4) web design; (5) software development; (6) market research; (7) engineering/applied science; (8) mathematics, statistics, database management
	Numbers of application of knowledge management	The 39^th question in the survey: has your company ever used the following methods to stimulate employees’ innovation or creativity between 2007 and 2010? (1) Brainstorming meetings; (2) forming cross-disciplinary or interdisciplinary teams; (3) job rotation for employees in different departments; (4) providing bonuses for employees proposing creative ideas; (5) offering rewards for employees proposing innovative ideas, such as additional free time, praise, or more interesting work; (6) providing innovation and creativity training for employees
	Strength of connection with clients	In terms of (3) clients or consumers for question 21.1 in the survey, what is the most important partner that your company collaborates with?
	Strength of knowledge sources	The 20^th question in the survey: the importance of knowledge sources for technology innovation during 2007 to 2010.
	-Market sources	suppliers of equipment, materials, services or software clients or consumers competitors or other companies consultants, private laboratories or research institutes	The market source is weak if only one option is selected. The market source is strong if more than two options are selected.
	-Research Sources	(1) universities or other institutes for higher education (2) government or public research institutes (e.g., ITRI)	The research source is weak if only one option is selected. The research source is strong if more than two options are selected.
	-Information sources	(1) seminars and exhibitions (2) scientific or business journals or magazines (3) professional and industrial societies (4) institutes or documents regulating standards for technologies or services	The information source is weak if only one option is selected. The information source is strong if selecting more than two options are selected.

Sources: derived from The Third Industrial Innovation Survey in Taiwan Area (Wu, 2013).

Small and Medium Enterprise Administration, Ministry of Economic Affairs (2011). The Report on 2011 SME Statistics. Taipei: Small and Medium Enterprise Administration, Ministry of Economic Affairs.

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Wu, S. H. (2013). The third industrial innovation survey in taiwan area (E99035) [data file]. Retrieved from Survey Research Data Archive, Academia Sinica. Doi: 10.6141/TW-SRDA-E99035-1

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