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

We investigate the impact of digital and non-digital knowledge search channels on propensity to innovation failure of knowledge-creating, knowledge-using, and non-innovation firms in emerging innovation systems. Digital search channels reduce the risk of innovation failure only for knowledge-creating firms, indicating the importance of internal capabilities for knowledge absorption. They help overcome the limitations of the home market and access remote knowledge in a cost-effective manner. The study adds a new perspective to the literature on innovation failure and highlights the role of Internet-based technologies in the flow of knowledge between firms and their environments. It expands our understanding of the role of context in innovation outcomes and provides evidence-based inputs for the formulation of innovation strategies in contexts where learning opportunities are limited and the transition to innovation-driven competitiveness is high on the policy agenda.