The Use of Knowledge for Technological Innovation Within Diversified Firms

2007/04/01 by Douglas J. Miller, Michael J. Fern, Laura B. Cardinal · 548 citations
Business, Management and Accounting · Economics, Econometrics and Finance · #Business #Computer science #Economic Growth and Productivity #Empirical evidence #Firm Innovation and Growth #Industrial organization #Innovation and Knowledge Management #Knowledge economy #Knowledge management #Knowledge value chain #Marketing #Organizational learning #Sample (material)

paper · doi:10.5465/amj.2007.24634437

published in Academy of Management Journal 50(2), 307-325 (Academy of Management)

openalex publication_date 2007/04/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/31

Abstract

We propose that searching for and transferring knowledge across divisions in a diversified firm can cultivate innovation. Using a sample of 211,636 patents from 1,644 companies during the period 1985–1996, we find that the use of interdivisional knowledge positively affects the impact of an invention on subsequent technological developments. Furthermore, the positive effect of the use of interdivisional knowledge on the impact of an invention is stronger than the effect of using knowledge from within divisional boundaries or from outside firm boundaries. Our empirical findings have significant implications for the management of knowledge in diversified firms.

Citations

• The Economics of Organization: The Transaction Cost Approach
• Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms
• Technological Discontinuities and Organizational Environments
• Absorptive Capacity: A New Perspective on Learning and Innovation

Cited by

• Structural Recombination and Innovation: Unlocking Intraorganizational Knowledge Synergy Through Structural Change
• Absorbing Knowledge from and with External Partners: The Role of Social Integration Mechanisms
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• Organizational Learning: From Experience to Knowledge
• Should an R&D manager refer to distant technical fields? The effectiveness of new combinations with knowledge from different technical fields through the quantitative analysis of patent data related to NetZero. [europepmc]
• Uncovering the characteristics and evolution of inter-provincial knowledge flow in China through Chinese literature citations. [europepmc]

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