Knowledge sources, innovation, and market and environmental performance in knowledge-intensive business services
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Knowledge-intensive business services (KIBS) are vital to modern innovation systems by enabling the creation, transfer, and use of knowledge across firms and sectors. Despite the increased interest in KIBS, empirical evidence on what drives innovation and how it relates to firm performance, especially in emerging economies, remains limited. This research investigates how knowledge sources contribute to technological and non-technological innovation, and how these sources relate to market and environmental performance in KIBS firms. Analyzing data from Peru's 2018 National Innovation Survey, which includes 587 KIBS, mostly in technological and professional services, the study employs confirmatory factor analysis and structural equation modeling to examine the relationships among knowledge sources, innovation types, and performance. The results show that knowledge sources are positively associated with both technological and non-technological innovation. However, neither type of innovation is significantly associated with eco-innovation performance. This suggests that while knowledge sources drive KIBS' innovation, translating innovation into measurable success depends on additional organizational and market factors. The study advances the literature by offering a deeper understanding of innovation processes in knowledge-intensive business services, while distinguishing between technological and non-technological innovation. In addition, the study emphasizes the importance of knowledge sources in shaping innovation and reveals that the link between innovation and firm performance may be more complex than generally assumed.
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