Interaction with external agents, innovation networks, and innovation capability: the case of Uruguayan software firms

Abstract

Purpose

The aim of this paper is to disentangle the interplay between nurturing interaction with external agents, innovation networks, and innovation capability. In particular, the paper argues that nurturing interaction with external agents (by means of participation in different events that allow face-to-face interaction, or via collaborative technology) positively affects the innovation capability of firms by allowing the development of innovation networks and making them run smoothly.

Design/methodology/approach

For this to be tested, an analysis has been carried out in Uruguayan software firms. A questionnaire was designed and addressed to the managers of the firms making up the target population. Structural equation modeling (SEM) based on partial least squares (PLS) was then applied to test the hypotheses put forward by the research.

Findings

The results obtained show that nurturing interaction with external agents has a positive and significant influence both on the formation of innovation networks and on their operational performance. This influence is much stronger when it comes to ensuring the smooth operation of the network than when it comes to facilitating its formation. Moreover, innovation networks and their functioning clearly mediate the relationship between interaction with external agents and innovation capability.

Research limitations/implications

Traditional limitations of cross-sectional studies apply.

Originality/value

Although previous literature highlights the relevance of social interaction for the creation of new knowledge and subsequent innovation, the role of mediating variables has been hardly considered. This research helps to shed some light on this issue in the case of social interaction with external agents. In particular, the mediating role of innovation networks has been analyzed.

Citation

Saenz, J. and Pérez-Bouvier, A. (2014), "Interaction with external agents, innovation networks, and innovation capability: the case of Uruguayan software firms", Journal of Knowledge Management, Vol. 18 No. 2, pp. 447-468. https://doi.org/10.1108/JKM-04-2013-0150