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 the likelihood of innovation failure among knowledge-creating, knowledge-using and non-innovative firms in emerging innovation systems. Our results show that digital search channels reduce the risk of innovation failure exclusively for knowledgecreating firms, emphasising the importance of internal capabilities in knowledge absorption. These channels allow firms to overcome the limitations of local markets and access distant knowledge resources more costeffectively. The study extends the literature on innovation failure by emphasising the role of Internet-based technologies in facilitating the flow of knowledge between firms and their external environment. It improves our understanding of how context influences innovation outcomes and provides evidence-based insights for the development of innovation strategies, especially in environments where learning opportunities are scarce and the shift towards innovation-driven competitiveness is a priority on the policy agenda.