Theories That Support Innovativeness Of Manufacturing Firms And An Empirical Review Essay

2020 Words9 Pages
2.1 Introduction
This chapter seeks to highlight the relevant theories that support innovativeness of manufacturing firms and an empirical review of factors that lead to a firms innovativeness. At the end of the chapter a theoretical framework is explained followed by a brief section of a review of the research philosophies.
2.2 Theoretical Review
There are various theories that are used in the field of operations management. In this section the knowledge based view and the resource based theory are briefly examined.
2.2.1 The Knowledge Based View (KBV)
Knowledge-based view (KBV) argues that knowledge, explicit information and tacit know-how (Kogut and Zander, 1992), is an intangible strategic resource and firms can gain competitive advantages through combining and creating knowledge. However, firms not only have to possess internal resources or knowledge to enhance innovation capability, but also need to establish linkages with their partners in the network to leverage on external resources and knowledge (Zhang et al., 2010), which could be conceptualized as absorptive capacity. Absorptive capacity is constituted by a set of organizational routines and processes that enable the firm to explore, transform, and exploit knowledge from different sources (Volberda et al., 2010). For manufacturing firms, new knowledge often comes from external sources such as suppliers or customers (Zhiqiang et al., 2016).

2.2.2 Resource Based View (RBV) Theory
This theory views a firm as
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