Determinants of innovation through a knowledge-based theory lens

In this paper, a model for determining innovation degree in service industries is presented. Such a model is developed under the knowledge-based theory lens. So, knowledge flows and knowledge integration capabilities of the organisation's members are considered as crucial for the innovation processes to be successfully implemented. The model is tested in a sample of engineering consulting firms of Spain. Main results point out the strong explanatory power of innovation intensity with knowledge theory-based models. Final conclusions consider knowledge management policies as the main impellers of service innovation.