Technological vs. Professional services and location influences on kibs innovative capacity in times of crisis

Abstract

This research seeks to ascertain the extent to which the innovative and competitive capacities of knowledge intensive business services (KIBS) companies are influenced by the service type (technological vs. professional) and their respective location (rural vs. urban) in times of crisis. Through recourse to structural equation models, the results demonstrate that innovative capacities are strongly dependent both on the type of service and the respective company location. We found that urban technological KIBS companies display greater innovative capacities and better financial performance than their professional service peers. Furthermore, networks were identified as the key explanatory factor behind these innovative capacities.