Knowledge Processes, Absorptive Capacity and Innovation: A Mediation Analysis

Abstract

The present research aims to explore the role of knowledge creation and absorptive capacity as mediating variables between knowledge acquisition, knowledge sharing, and companies' organizational innovation. A theoretical model supporting the hypothesized relationships is developed, and then research hypotheses are tested with a sample of 111 industrial organizations, using partial least squares structural equation modeling. The results show that knowledge creation positively influences innovation and partially mediates the relationship between intra-firm knowledge sharing and innovation. Knowledge acquisition from external partners is not enough to promote innovation results but significantly reinforces absorptive capacity as well as knowledge sharing. Companies' absorptive capacity fosters the creation of knowledge, but does not significantly influence organizational innovation. The small sample size limits generalization of the present findings. Further research should explore the complementary role of knowledge creation and absorptive capacity in both small and medium-sized enterprises and large companies. Knowledge management practitioners should facilitate a knowledge sharing environment, where new ideas and solutions can be developed, and consequently innovation outcomes are likely to occur. This paper follows recent approaches to mediation analysis and covers advanced topics in partial least squares structural equation modeling literature, providing empirical examples of the application of hierarchical component models and mediation analysis using bootstrap. Copyright

Social capital, knowledge quality, knowledge sharing, and innovation capability: An empirical study of the Indian pharmaceutical sector

“…These were in conformance to the current findings where knowledge sharing was found to have a significant and positive association with the innovation capability of an organization. This study was further in conformance with a previous study conducted by Costa and Monteiro (2016), who found out that knowledge sharing played a significant role in fostering innovation. Additionally, case studies conducted by Okuyama (2017) on two Japanese pharmaceutical companies also highlight that both explicit and tacit knowledge work in tandem for incremental innovation processes.…”

The knowledge management, product innovation, and process innovation as antecedents of sports manufacturing firms of Thailand

“…The valuable knowledge can be sourced from both external and internal sources. Use of internal and external knowledge in an organized way can add value to the operational performance along with achievement of competitive advantage for the firm (Costa & Monteiro, 2016;Dahiyat, 2015). The results reveal that the innovation of process has a positive mediating influence on the relation of operational performance and KM.…”

“…It is assumed by the theory that resources are valuable, rate, imitable and non-substitutable. Moreover, the resources support in the achievement of competitive advantage (Bromiley & Rau, 2016;Costa & Monteiro, 2016;Dahiyat, 2015). It has been argued that manufacturing companies become able to innovation through KM capability, which improves the operational performance of an organization.…”

“…It has been argued that manufacturing companies become able to innovation through KM capability, which improves the operational performance of an organization. The crucial antecedent of innovation is KM (Costa & Monteiro, 2016;Dahiyat, 2015). Moreover, the innovation is promoted through KM by generation of new ideas and their exploitation in the intellectual capital of an organization.…”

“…Innovation and knowledge management are the significant optional strategies that can improve the ability of organization to fulfil the needs of customers and comply with the changing technologies. In this way, the organizations become able to maintain their competitive advantage in the rapidly changing environment (Costa & Monteiro, 2016;Dahiyat, 2015). Alternatively, the relation between performance and KM has been analysed in literature.…”