Evaluating the Effects of Information Sources on Innovation Outcomes: Are There Differences between KIBS and Manufacturing Firms from a Latin America Country?

Abstract

The aim of this paper is analysing the relationships between sources (internal/external) of information and innovation outcomes (product, service and process) in Peruvian companies. Furthermore, we explore differences and similarities in these relationships when comparing manufacturing firms and knowledge-intensive business services (KIBS) firms. This study presents evidence based on the application of a logit model to a sample of 1141 Peruvian companies, comprising 830 manufacturing firms and 311 KIBS firms. Despite the fact that Peruvian companies do not tend to turn to external sources of information or invest in internal R&D activities, we find positive relationships between sources of information and innovation outcomes in both manufacturing firms and KIBS firms—predominantly process innovation in both cases, followed by product (goods) innovation for manufacturing firms and service innovation for KIBS. Our findings indicate that not all external sources of information have positive effects on product, service and process innovation. Thus, managers should consider proper management of the company’s external relations in order to take advantage of these relationships. Moreover, policymakers should promote interrelationships between the actors in the innovation system (e.g., companies, research centres, universities, etc.) thereby generating opportunities for innovation. This paper provides evidence that the configuration of sources of information (especially internal R&D) plays a significant role in innovation outcomes in both manufacturing firms and KIBS firms, specifically in the context of Latin American countries.