Where does the source of external knowledge come from? A case of the Shanghai ICT chip industrial cluster in China

Purpose – The purpose of this paper is to: first, divide external knowledge into different levels and understand how these different levels of external knowledge create different knowledge networks. Second, explore the relation among different levels of external knowledge, different types of knowledge and their influences on innovation. Different types of knowledge may act as mediators between different levels of external knowledge and innovation performance are also discussed. Third, further explicate the possible reasons behind the phenomena observed in the first and second objectives. Design/methodology/approach – The quantitative and qualitative research methods were adopted in this study. In terms of the quantitative research method, data were collected from 157 information and communications technology (ICT) companies in Zhangjiang. There were 38 interviews carried out using the qualitative research method. Interviewees included 26 directors from the Zhangjiang ICT chip companies and 12 directors from China’s domestic mobile phone manufacturing sector. Findings – This study finds out that the source of external knowledge in the Zhangjiang Hi-Tech Park is mostly derived from cross-regional and cross-national connections. Through the connection with global companies, the firms in Zhangjiang acquire technical knowledge. Also, through the interaction with cross-regional companies, the firms in Zhangjiang absorb market knowledge. The results of this study indicate that the cross-regional connections are spurred by the increasing demand of the Chinese domestic market and the government’s support for cross-regional interactions. Cross-national connections are encouraged and led by the Chinese Government after China’s 3G communication standard is adopted. Research limitations/implications – This study is built upon a case study in Zhangjiang of China. The findings of this study may not be applicable to other countries or regions in China. Also, this study only focusses on the ICT industry in Zhangjiang. Knowledge from different industries is not included in this study. In addition, the formal and informal knowledge flow is neglected in this study as well. Practical implications – The findings of this study provide business executives and policymakers with a new way of thinking about the development of industrial clusters and local firms. Firms may be able to find new ways to raise innovation performance using different external knowledge. Originality/value – The major contribution of this study is an initial attempt to provide a comprehensive analysis of external knowledge of industrial clusters, different types of knowledge and their influences on innovation performance. Moreover, the mediating effects of different types of knowledge are also discussed.