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Use of knowledge brokering services in the process

DOI: 10.1109/ICMIT.2012.6225817

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Citation for published version (APA): Malik, K. (2012). Use of knowledge brokering services in the innovation process. In 2012 IEEE 6th International Conference on Management of Innovation and Technology, ICMIT 2012|IEEE Int. Conf. Manage. Innov. Technol., ICMIT (pp. 273-278). IEEE. https://doi.org/10.1109/ICMIT.2012.6225817 Published in: 2012 IEEE 6th International Conference on Management of Innovation and Technology, ICMIT 2012|IEEE Int. Conf. Manage. Innov. Technol., ICMIT Citing this paper Please note that where the full-text provided on Manchester Research Explorer is the Author Accepted Manuscript or Proof version this may differ from the final Published version. If citing, it is advised that you check and use the publisher's definitive version.

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Download date:01. Oct. 2021 Use of knowledge brokering services in the innovation process

Khaleel Malik1 1MIoIR, Manchester Business School, University of Manchester, Manchester, UK (e-mail: [email protected])

The role of intermediaries and the process of Abstract - This paper investigates the use of knowledge intermediation has also been explored in the context of brokers who provide a technology intelligence brokering service activity, in particular in relation to the growth of service to help firm’s access external knowledge for their Knowledge Intensive Business Services (KIBS) [7, 8]. innovation process, especially as part of ‘search and Many KIBS firms have close and continuous interactions scanning’ . This is seen as an important intermediation role. with their clients which can involve crucial, but largely The paper provides an overview of the different functions of ‘knowledge brokers’ that have emerged to assist firms with hidden, functions in supporting innovative change within innovation by connecting clients with external partners with their client companies [9]. In the context of this paper, we a view to better informing the ‘search and scanning’ view business-related intermediaries as ‘knowledge activities of the client firms. Two case studies presented here brokers’ who act as bridges for innovation to other help to illustrate how UK manufacturing firms have manufacturing and service firms, in line with Wolpert benefitted from using intermediary organizations such as [10]. management consultants and Research Technology The paper proceeds as follows. Section II provides an Organizations as part of their search and scan activities. overview of key literature strands relating to external partnering, search and scanning, and intermediation all in Keywords – intermediaries, knowledge brokering, context of the innovation process. Section III presents the search and scan. methodological approach used in this research study.

Section IV presents findings from two case studies that

help to illustrate the role of intermediaries when acting as I. INTRODUCTION knowledge brokers. Sections V and VI provides some A growing body of thought argues that in a theoretical and practical based implications and competitive era in which success depends increasingly conclusions that are relevant to innovation management. upon the ability to produce new or improved products and processes, external knowledge acquisition constitutes an important basis for innovation-based value creation. II. THEORETICAL BACKGROUND Openness to new ideas and solutions is considered essential for innovation projects, especially for firms A. External partnering for innovation collaboration moving towards an open innovation business model. In The literature indicates that there are many potential turn this is associated with increasing levels of external knowledge advantages associated with external collaboration and outsourcing, which strongly links to the collaborative partnerships [11, 12]. Sometimes some effective acquisition of knowledge from external business knowledge may be obtained in no other way than through relationships [1, 2]. In the area of ‘searching/ scanning’ partnering with a firm that has control over an important external knowledge sources with a view to internalizing technology [13]. Thus, there is great potential value this knowledge, a more prominent type of knowledge associated with pursuing a knowledge accumulation and brokering services have emerged that include creation strategy through the use of some form of organizations providing technology intelligence and knowledge brokering service. Often the decision-making information exchange to their clients [3, 4]. Here it should criteria of the firm revolve around whether to use external be mentioned that ‘search/scan’ is often seen as an collaborative partnerships to gain knowledge and/ or an activity undertaken during the fuzzy front-end phase of assessment of the costs associated with potential the innovation projects [5]. This is a critical phase for two knowledge gains and losses [14, 15]. After a decision has reasons. First, the foundation for success or failure is been made to collaborate with an external partner, often often established before a new concept enters the the next step is to formalise the informal initial subsequent formal development process. Second, many collaboration in terms of setting up a contractual firms lack proficiency in the way front-end activities are agreement [16]. Some studies have analyzed this executed [6]. Altogether, previous research has shown contractual aspect for technology transfer agreements, that these activities have a major impact on final new where for example, Watkins and Horley [17] identified product or process development success. the role played by intermediary organizations to identify technology transfer partners, help package the technology to be transferred between two firms, select suppliers to

make components for the technology and provide support These consultants, therefore, help define and articulate the in making the deal between the firms concerned. In needs of the client in relation to innovation. This includes another technology transfer study, Seaton and Cordey- articulation and selection of technology options; scanning Hayes [18] highlighted the role of the Defence and locating new sources of knowledge; building linkages Technology Enterprise (DTE) as a knowledge broker with external knowledge providers; development and involved in technology exploitation. This study showed implementation of business and innovation strategies. how DTE interacted with their clients in the technology When adopting solutions from other industry sectors, transfer process and demonstrated that brokering is more companies mainly rely on an intermediary organization to than just a linking role, as it also helps transform the ideas share their experience in product development and and knowledge being transferred. industrialization and, thus, to reduce risks. The intermediary is expected to integrate the new technology B. Search and scanning into the customer’s company through product Technology managers are often faced with the development support and coaching, or even by dilemma of selecting a single most appropriate technology implementing the solution himself. Some customers may from a range of competing options. The rapid also want an intermediary to possess experience of legal development of technologies, together with their or intellectual property rights issues so that the increasing complexity and variety, has made the task of intermediary could minimize their legal exposure [21]. technology ‘search and scanning’ difficult. One key theme of the literature relating to areas of Shehabuddeen et al. [19] state that current approaches to external partnering for innovation and the search/ the technology selection decision have usually been scanning process is that the acquisition of technological narrowly focused on assessment of the financial viability knowledge is a process that is closely linked to other of technology options, or conventional investment business processes, and is more often associated with the justification factors. In many cases, the selection broader technological, organizational and business processes are based on generic decision support tools environment. This aspect of knowledge acquisition is which are not fully adapted for technology selection. This encompassed in the remainder of this paper. emphasizes the view that a ‘knowledge broker’ might be utilized to help with search and scanning of the external environment because brokering is more than just a linking III. METHODOLOGY role. Hargadon and Sutton [3] also confirm that the role of a knowledge broker is not just one of supporting a The research is based on two in-depth case studies linkage. In their study of IDEO a U.S. design consultancy, that involved semi-structured interviews with managers in they emphasize that the role of the knowledge broker four British based organizations, based on specific project should be seen as a knowledge repository whose collaborations, together with their overall strategies and knowledge its workers use to provide solutions that are work practices. The primary survey material collected by new combinations of existing ideas to their clients. interview was also supported by the collation and For large firms, even with sophisticated search synthesis of secondary documents made available by the machines and well-developed information and source organizations. The case studies were oriented by a case libraries, it is often difficult for firms to adequately know study protocol developed prior to data collection, and what they ‘know’ [3]. Here it is important to stress that information was collected in such a way as to allow the scanning activity is also a learning process. As triangulation on all relevant aspects of our research, by at scanning and networking activity builds up it helps to least two different information sources [22]. Our case increase an organization’s awareness of externally study discussions were informed by a prior review of developed technology, and also to reduce search times technology and innovation management literature, and [20]. subsequent conceptual development. This research is interested in exploring how the use of technology C. Innovation intermediation intelligence brokering has been operationalized by There is some evidence to suggest that ‘innovation industrial firms and knowledge brokering service intermediation’ has grown over recent times. Howells [4] providers? confirms that although organizations providing an Given that this was an exploratory study in part to ‘innovation intermediation’ function tend to remain help articulate what an innovation intermediary is. It was specialized around particular activities, the range of helpful to use the following working definition from services being offered does appear to be increasing over Howells [4, p. 720], of an innovation intermediary during time. In addition, the organizations providing the case study interviews: “An organization or body that intermediation functions do not solely or even wholly acts as an agent or broker in any aspect of the innovation restrict themselves to intermediary functions, but also process between two or more parties. Such intermediary cover more traditional contract research and technical activities include: helping to provide information about services which involve no third party type collaboration. potential collaborators; brokering a transaction between Bessant and Rush [9] highlight the more interactive and two or more parties; acting as a mediator, or go-between, diagnostic role of consultants acting as intermediaries. bodies or organizations that are already collaborating; and

helping find advice, funding and support for the in areas that might influence the future competitiveness of innovation outcomes of such collaborations.” Glass STH’s business. For example, some of these academics were working in early research on advancements in nanotechnology. IV. RESULTS Consultant KBX utilized several means to search for potential research partner organizations for their client. A. Management Consultant acting as knowledge broker This involved sending out promotional leaflets to some In the first case study we learned that a UK-based research-intensive universities who may be interested in management consultancy firm (for confidentiality collaborating with Glass STH. The universities were purposes referred to as ‘Consultant KBX’) was not only identified from internet searching of research capabilities providing ‘one-off’ intermediary services to its clients, found in the universities to try and identify some but also seeking to offer longer term ‘relational universities with technical competence in areas where innovation’ capabilities to them as well. As this type of Glass STH did not possess such capabilities. Consultant collaboration can last for a number of years, rather than a KBX also sent staff to some international conferences and few months, it provides opportunities for the workshop events to help identify potential university intermediaries to get to know their clients better as well as collaborators. Consultant KBX was able to identify to gain more lucrative, value added contracts. In our case relevant conference/ workshop events because the study Consultant KBX provided advice to a major, company had some information on major science and process based glass manufacturing company (referred to technology conferences as a result of sitting on EPSRC here as ‘Glass STH’) on what external research links, committees. The EPSRC is the main UK government especially collaborations with universities, that Glass STH agency for funding research and training in engineering would find valuable for its long-term development. This and the physical sciences. is, however, not just a simple scoping exercise of locating We found that organizational diversity plays a potentially useful research expertise in universities and particularly important role in terms of cultural, other research centers. It also involves gaining a deeper professional and technical backgrounds of staff employed knowledge of what Glass STH actually needs, identifying in Consultant KBX. Despite having a relatively small the client firm’s core competencies, and then mapping number of permanent full time consultants (around 40 in potentially useful research linkages with this profile. This total), Consultant KBX employs people from a variety of means identifying where external research capabilities countries, with fluency in more than 15 different could fill the current and future research and languages. Professional backgrounds cover different areas technological gaps (or areas of weakness) that the client including, engineering, physics, electronics, biochemistry, company could not provide or would do better not mathematics, IT, psychology, economics, law and providing itself. Glass STH make a variety of glass management. Professional experience, most of the times products ranging from coated/tinted glass which saves international, covers all the elements of bringing expertise energy to toughened/ laminated safety glazing products. in R&D, operations, marketing, sales, finance, human If we analyze the results of the Consultant KBX and resources, and logistics. More specifically, this Glass STH collaboration within the ‘search and scanning’ multinational organization is built up of postgraduate stage of the innovation process, we found that even scientists, technologists, business strategists, and though Glass STH already had a strong working qualitative research analysts, who combine commercial relationship with some universities; the firm were still experience with technical understanding. interested in working with other universities who were researching in areas that were not considered to be core to B. Innovation and business support intermediary Glass STH’s current portfolio of research activities. In the second case study we analyzed the role of a Hence Glass STH commissioned Consultant KBX to UK-based independent research and technology conduct exploratory studies in areas that were linked organization (for confidentiality purposes referred to as indirectly to core technologies and R&D activities of the ‘IBST’) that employs 500 staff and has an annual turnover client firm. For example Glass STH had been interested in of £45 million (GBP). IBST helps its clients to innovate the area of chemical vapor deposition and was able to ask across the whole business cycle from products and Consultant KBX to identify university groups who had processes, through business processes and people chemical expertise in this area. Consultant KBX managed development, with the ultimate aim of improving the interface between Glass STH and its university competitiveness and increasing profitability. contacts by firstly carrying out an audit of what IBST’s Knowledge Services Division had developed interactions Glass STH managers had with universities an innovative search and solution engine, providing and for what reasons. From gathering this information the answers to research and technical queries inputted by consultant was able to match Glass STH’s list of core managers from client companies. This is basically an competencies for the whole business process to establish information scanning and technology intelligence service, which universities might be able to provide the expertise where the value is not only within the service content, but not currently found within Glass STH. The consultant was also in the direct access that it gives to IBST's staff, with also able to identify some university academics working wide experience of technology, manufacturing and

business. The Knowledge Services Division of IBST technology/ business problem via an intermediary benefitted from sharing some operational activities of this organization is part of the larger process of scanning, firm with the Technology Consulting arm of the company. selection, adoption and exploitation. This however, is a This has enabled IBST to have built up the following very important part according to Shehabuddeen et al. [19] capabilities in recent years: has access to more than since the selection decision has to take a forward view of 30,000 world business and industry news sources; access how the chosen technology might impact the process of to full market research reports from over 200 providers; adoption and exploitation. It is also linked to the upstream access to information on over 70 million global private process of scanning since options identified as a result of and public companies; investment information from over the scanning process may not be sufficient, in terms of 10 million industry analyst reports; access to over 17,000 variety or conformity, to be considered for selection. In technical peer reviewed journals; access to global patent connection with the ‘selection decision’ it is asserted in and intellectual property information; access to analysis our cases that decision making is rarely, if ever, an and forecasts on over 210 countries. The ‘search and solution technology’ enabled IBST to optimal or perfectly rational process (from the perspective archive substantial research information, which it sought of the client firm who has approached the intermediary to make more widely available to its global customer organization). Decision making in such conditions is base. By charging for information on an ad-hoc basis, or made within a context of the manager developing and on an account basis for registered members, these applying a few general principles and procedures, in research archives become a cost effective source of practice, founded on a heuristic process, whereby people information and advice for IBST’s clients. Market employ procedures that are efficient and that work most research had led IBST to come to the conclusion that of the times, even though they sometimes lead to errors there was a real gap in the market for the high-value, [23]. Hence highlighting the need to make more informed operationally focused information and knowledge that decisions around the external acquisition of knowledge, could be applied to businesses to solve their problems. perhaps utilizing some form of a decision-making tool to This project was seen as a considerable undertaking by help ensure that the right decision can be taken at the IBST since it took some years to develop as the bulk of selection stage [24]. We see from the first case study how the information held was still on paper (with only the input from the intermediary organization (Consultant summary and abstract sections in electronic format) and KBX) actually helped the client firm (Glass STH) to make further complicated by the fact that customers accessing a more informed decision to partner with the most the search technology were using a range of different appropriate university research center. Hence this technologies and interfaces. This search technology is scanning activity became an important learning different from regular search engines found on the opportunity for Glass STH, not only learning about the Internet. For many manufacturing firms, especially small university it eventually partnered with but also learning firms, the Internet can be a confusing place to look for information. Hence one aim of the IBST search about other universities that were currently active in the technology was to enable faster and reliable access to field of research that was of interest to Glass STH, which information sources for clients in the manufacturing was facilitated by the knowledge brokering service industry as the bulk of the information already held was provided by Consultant KBX. from this industry sector. When adopting solutions from other industry sectors, As search and scanning activity builds up it helps to as mentioned in our cases, companies often rely on the increase an organization’s awareness of externally intermediary organization to help reduce uncertainties developed technology. Often organizations can have too frequently found during the fuzzy front end of innovation. narrow a focus to recognize new opportunities or If uncertainty is not sufficiently reduced, it might solutions to seemingly insurmountable problems. Hence eventually lead to concept failure, which can be costly at one key attribute of the IBST solution was that it could later stages of product development [25]. To reduce identify technologies that can be transferred from one uncertainty, managers and project participants should industry sector to another. This is seen as an important continually engage in information acquisition and analysis knowledge brokering service by one of IBST’s clients regarding changes in technology, markets, internal from the medical devices sector, where one research organizational developments and priorities, external manager commented: “The real benefit of the IBST developments, and competitors [6]. This can all be search and solution service from our perspective is in the facilitated when managers utilize the services of an time saved in analyzing all the available information out intermediary, as indicated in our second case study. there in the market and in helping us to assess the In line with Howells [4] our cases confirm that the essential issues so that we make the right decisions”. functions of an intermediary organization are more

numerous, diverse and knowledge intensive than previous V. DISCUSSION studies have implied. Intermediaries and their clients discover new needs and requirements for their The case studies suggest that finding a solution to a intermediary roles. For example, moving from

undertaking information scanning and technology to show which type of interactions have worked well in intelligence to more fundamentally determining where to the past and which might not have worked so well. look in the first place, which might be better described as The paper has shown that intermediaries provide a a foresight and diagnostics role. This also highlights the much more varied role for their clients in the innovation fact that innovation intermediaries can be considered to be process than has generally been acknowledged. Hence a species of KIBS, especially given the knowledge this implies that there is also a wider range of innovation brokering attributes of some intermediaries. Many KIBS intermediation functions than has been usually firms have close and continuous interactions with their considered. There is some evidence to suggest innovation clients, which was a strong feature of the intermediaries intermediation is an activity that is growing over time. Although organizations providing such intermediation analyzed in our case studies. This can be expressed as the functions tend to remain specialized around particular combination of demand articulation, network brokerage actions, the range of services being offered does appear to and innovation process management functions that makes be increasing over time. In addition, the organizations innovation intermediaries unique within the KIBS providing intermediation functions do not solely restrict infrastructure of firms. themselves to intermediary functions, but also cover more Here it also helpful to understand how the traditional contract research and technical services which organizational structure and culture of the intermediary involve no third party type collaboration. This may also organizations studied here supports their knowledge be linked to the fact that the intermediaries are built up of brokering activities. The structure of work in knowledge people with a variety of backgrounds and skills set, which brokering firms supports innovation because it exposes often includes postgraduate scientists, technologists, these organizations to a continual flow of new problems business project managers, and research analysts, who are that often require novel solutions. A diverse client base adept at combining commercial experience with technical ensures that the intermediary firms encounter a wide understanding. range of problems and solutions [26].

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