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Despite the keen interest in radical and incremental innovation, few studies have tested the varying impact of firm-level factors in service sectors. This paper analyses how collaboration with existing and prospective users and investments in knowledge management (KM) practices can be adapted to maximise the outputs of radical and incremental process innovation in a knowledge-intensive business service industry.

Original survey data from 166 information technology service firms and interviews with 13 executives provide the empirical evidence. Partial least squares-structural equation modelling is used to analyse the data.

Collaboration with different types of users, and investments in KM practices affect radical versus incremental process innovation differently. Collaboration with existing users influences incremental process innovation directly, but not radical innovation; and prospective user collaboration matters for radical, but not incremental innovation. Furthermore, for radical innovation, investments in KM practices mediate the impact of prospective user collaboration on innovation.

While collaboration with existing users for incremental process innovations does not appear to generate significant managerial challenges, to pursue radical innovations firms must engage in intensive collaboration with prospective users. Higher involvement with prospective users requires higher investment in KM practices to promote efficient intra- and inter-firm knowledge flows.

This study is based on a large-scale survey, together with management interviews. Radical and incremental innovations in the service industry require engagements with different kinds of users, and the use of KM tools.

This paper aims to, through the disintegration of the innovation process in this paper, attempt to shed light on what are some of the distinctive features of this phenomenon, such as: Who is outsourcing R&D? What types of R&D services are being outsourced across the R&D value chain and to whom? Where are firms outsourcing these services? and Why do firms decide to outsource them? Outsourcing practices of some stages of the R&D process to specialized providers have been gaining momentum during the past years even by firms operating in high-tech sectors.

The data used in this paper stem from an original international survey on R&D services outsourcing. This survey includes a sample of 182 US and European Union firms competing in technology-intensive industries.

This study provides evidence of the existence of a global outsourcing market that covers practically all the R&D stages and is widely used by technological firms. However, it highlights the importance of multinationality to be able to use R&D outsourcing as a tool for value creation.

Despite the relevance of this phenomenon, previous studies tend to analyze the R&D function as a whole. However, through the disintegration of the innovation process, this paper provides original international data which helps to analyze the real magnitude and scope of this R&D offshore outsourcing process at the transactional level.

This study explores the factors influencing the value of enterprise social media (ESM) from the perspective of compatibility. Establishing a theoretical model based on compatibility theory, the authors examine the effects of two dimensions of compatibility and the mediating effects of employees' intrinsic motivations. ESM is an important tool that helps companies to enhance knowledge sharing and cross-department collaboration. Thus, it is important to understand factors that can facilitate the role of ESM in improving enterprise operating performance.

The authors conducted a survey among 353 users of a leading ESM platform and empirically investigated how compatibility influences ESM value through employees' intrinsic motivations. Structural equation modeling (SEM) was applied to study the relationship among compatibility, employees' intrinsic motivations and ESM value.

The empirical research results indicate that compatibility of self-interest with group interest influences the value of ESM, and intrinsic motivations toward collaboration and toward knowledge management partially mediate the effects of the two dimensions of compatibility on ESM value.

First, the empirical analysis relies on data from surveying employees of Chinese companies. Therefore, one direction for future research is to reexamine the model using data from other countries. Second, the effects of compatibility identified in the study may vary among different ESM platforms. In addition, the findings may change for organizations having different sizes.

This finding suggests that managers should pay close attention to potential conflicts of interest when implementing ESM to enhance group communication and collaboration. This study also highlights the importance of compatibility of new working processes with experience in practice. In addition, intrinsic motivations towards both cooperation and knowledge management in ESM are important factors influencing the value creation of ESM. Therefore, to cultivate employees' intrinsic motivation, managers and organizations need to facilitate the formation of a collaborative atmosphere and habits of cooperative adoption.

Although previous studies show that compatibility is a strong belief salient to technology acceptance and continuance usage behavior, the operational definition of compatibility developed by prior studies has generally been limited to the technology perspective and the individual level. However, the primary benefit of ESM is enabling online team collaboration and knowledge sharing across various departments. Thus, the level of compatibility between employees' self-interests and group interests may influence their intrinsic motivations toward ESM usage. From this perspective of individual–group interest conflicts, the authors propose a conceptual research model based on the theory of compatibility in innovation diffusion.