Purpose
This paper aims at exploring the effect of knowledge management (KM) practices on the relationship between external research and development (R&D) and innovative performance. The authors argue that the firms which develop and possess superior KM capabilities have the ability to better manage external knowledge and combine it with the internal one.
Design/methodology/approach
The authors used a sample of 117 European MNC subsidiaries. An OLS regression analysis was carried out to evaluate the moderator effect of KM on the relationship between external R&D and innovative performance.
Findings
The authors found positive evidences in favor of a moderator effect of KM. This means that subsidiaries with superior KM capabilities are more effective in using external R&D, augmenting the magnitude of their external sources of knowledge and, consequently, improving their innovative performance.
Practical implications
Managerially speaking, both corporate and subsidiaries’ managers need to understand the relevance of managing knowledge effectively and efficiently at the subsidiary level. Corporate managers need to allocate more resources (both financial and managerial) to the subsidiaries that are active in knowledge transfer and sharing, while subsidiaries managers need to implement practically the KM tools and processes at the subsidiary organizational level to improve subsidiary’s innovative performance.
Originality/value
This paper contributes mainly to the KM field, highlighting the importance of KM at the subsidiary level, whereas most of previous studies focus on different units of analysis.
Purpose
This paper aims to study the effects of knowledge acquisition on innovation performance and the moderating effects of human resource management (HRM), in terms of employee retention and HRM practices, on the above-mentioned relationship.
Design/methodology/approach
A sample of 129 firms operating in a wide array of sectors has been used to gather data through a standardized questionnaire for testing the hypotheses through ordinary least squares (OLS) regression models.
Findings
The results indicate that knowledge acquisition positively affects innovation performance and that HRM moderates the relationship between knowledge acquisition and innovation performance.
Originality/value
With the increasing proclivity towards engaging in open innovation, firms are likely to face some tensions and opportunities leading to a shift in the management of human resources. This starts from the assumption that the knowledge base of the firm resides in the people who work for the firm and that some HRM factors can influence innovation within firms. Despite this, there is a lack of research investigating the link between knowledge acquisition, HRM and innovation performance under the open innovation lens. This paper intends to fill this gap and nurture future research by assessing whether knowledge acquisition influences innovation performance and whether HRM moderates such a relationship.
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