Relationship between knowledge and innovation performance : the mediating role of absorptive capacity
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Date
2008-05
Authors
Khoo, Kah Kheng
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
One of the defining features of competition in many industries has been the extremely
rapid pace of technological change, marked by a continuous stream of innovations.
Manufacturing firms, therefore, face the challenge of nurturing existing knowledge and
developing novel knowledge in order to create new business opportunities. The firm's
knowledge processing capabilities have a central role in endeavors to achieve firm's
innovation performance and competitive advantage. Absorptive capacity capabilities and
innovation is viewed as an essential part of the firm's success. Absorptive capacity is a
highly important organizational capability to recognize value and assimilate external
knowledge in order to increase firm's innovativeness. The aim of this study is to
determine if the innovation performance can be improved through the absorptive capacity
(knowledge acquisition, dissemination and utilization) that is supported by prior
knowledge. Structured questionnaire was used in this study. Three hundred and fifty
questionnaires were distributed to the manufacturing firms located at the northern region
of Malaysia. Only sixty nine useable questionnaires have been collected back. Based on
the analysis, firm's experience and contracted R&D was found significantly related to
firm's innovation performance. It was also found that the firms operating in a fastchanging
environment acquire less external knowledge than those operating in more
stable and predictable conditions.
Description
Keywords
Knowledge and innovation performance