Internal and external sources of tacit knowledge: evidence from the Chinese optical fibre and cable industry

Abstract

This paper provides an analysis of the relative significance of various methods of acquiring tacit knowledge within the Chinese optical fibre and cable industry. The paper contributes to the definition, understanding and investigation of tacit knowledge using firm-level data in a developing country context, helping to complete a gap in the existing broader literature on technological learning. The research suggests that in industries where tacit knowledge is a more important component of technological learning than codified knowledge, internal R&D activities and domestic peers are important knowledge sources. Additionally, universities are shown to be an important asset in creating learning organisations and provide effective knowledge sources of both tacit and codified knowledge. However, imports of equipment and licensing are a less effective learning channel in the acquisition of tacit foreign technology.

Keywords:

• technological learning
• tacit knowledge
• knowledge sources
• China

JEL Classifications:

• O30
• O33

Acknowledgements

The authors would like to thank the National Natural Science Foundation of China for providing financial support to the research (Project No. 70873070) and Professor Guisheng Wu, Dr Yan Wang of Tsinghua University for offering very important help and comments.

Notes

1. See Kessler, Bierly, and Gopalakrishnan (2000) and discussion in Section 2.

2. Bell and Pavitt (1995) define technological learning (or technological accumulation) as ‘any process by which the resources for generating and managing technical changes (technological capabilities) are increased or strengthened’.

3. A common theme within the works of Amsden (1989), Hobday (1995) and Xie (2004) is that technological learning requires the acquisition (copying or borrowing) of foreign technologies, possibly followed by adaptation and improvement.

4. Figueiredo concludes that rates of technological capability accumulation and improvement in operational performance can be accelerated through the knowledge processes within a company, through devotion of attention to the variety, intensity, functioning and interaction of four identified processes: external knowledge-acquisition, internal knowledge acquisition, knowledge socialisation and knowledge codification.

5. Based on a 6-year panel dataset covering 304 Dutch manufacturing firms over the 1996 to 2001 period.

6. Based on a dataset covering 1335 Belgian manufacturing firms in 1993.

7. Three of them also produce cable.