Benefiting from external knowledge: Commercialization capability as a moderator

Although more knowledge might be better for a firm, not all technological knowledge can create and realize economic value. Firms must commercialize their knowledge or resources. Based on panel data of Bio-Pharm industry from 1987 to 2008 by combining USPTO Patent Assignment, NEBR, SDC, and Compustat database, 96 US-based technology public firms comprised the empirical base for testing the moderating role of commercialization capability on the relationship between external knowledge and firm performance. The results confirm the strategic role of a firm´s commercialization capability for its competitive advantage. However, commercialization efforts do not have the same effects on all external knowledge resources. While the interaction effect of partnership-based knowledge and commercialization capability is found to be positive and significant on short-term and long-term performance, the interaction effect of transaction-based knowledge and commercialization capability contributes positively and significantly only to short-term performance. Therefore, a commercialization strategy is contingent on the characteristic of technological knowledge.