The impact of digital and non-digital knowledge search channels on innovation failure in constrained learning environments

Abstract

We investigate the impact of digital and non-digital knowledge search channels on the likelihood of innovation failure among knowledge-creating, knowledge-using and non-innovative firms in emerging innovation systems. Our results show that digital search channels reduce the risk of innovation failure exclusively for knowledge-creating firms, emphasising the importance of internal capabilities in knowledge absorption. These channels allow firms to overcome the limitations of local markets and access distant knowledge resources more cost-effectively. The study extends the literature on innovation failure by emphasising the role of Internet-based technologies in facilitating the flow of knowledge between firms and their external environment. It improves our understanding of how context influences innovation outcomes and provides evidence-based insights for the development of innovation strategies, especially in environments where learning opportunities are scarce and the shift towards innovation-driven competitiveness is a priority on the policy agenda.