No Access

Impact of Knowledge Management Capabilities on New Product Development and Company Performance

Hakki Yildirmaz

Human Resources Department, T-Bank, Istanbul, Turkey

E-mail Address: hakkiyildirmaz@gmail.com

Corresponding author.

Search for more papers by this author

M. Atilla Öner

Department of Business Administration, Yeditepe University, Istanbul, Turkey

E-mail Address: maoner@yeditepe.edu.tr

Search for more papers by this author

, and

Nicole Herrmann

Department of Innovation Management, University of Applied Sciences Ludwigshafen am Rhein, Ludwigshafen am Rhein, Germany

E-mail Address: nicole.e.herrmann@gmail.com

Search for more papers by this author

https://doi.org/10.1142/S021987701850030XCited by:5 (Source: Crossref)

Abstract

Managing knowledge is a critical challenge for organizations while it is a major potential for gaining competitive advantage. This empirical study confirms and improves a framework which proposes a link between knowledge management enablers and knowledge creation process. The model introduces improvements on the process-oriented perspective of knowledge by using the knowledge creation model by adding business strategies and market dynamism to the model. As an inter-mediator, new product development is accepted. This research provides a structural equation model (SEM) that can be referred by academicians and enables managers a tool that can be used for seeking sound strategies.

Keywords:

References

Ackoff, R. L. and Emory, F. E. [1972] On Purposeful Systems. Aldine, Chicago. Google Scholar
Anand, V., Manz, C. and Glick, W. H. [1998] An organizational memory approach to information. The Academy of Management Review, 23: 796–809. Crossref, Google Scholar
Anderson, J. C. and Narus, J. A. [1998] Business marketing: Understanding what customers value. Harvard Business Review, 76: 53–65. Google Scholar
Ansoff, H. I. [1957] Strategies for diversification. Harvard Business Review, 35: 113–124. Google Scholar
Barringer, B. R. and Bluedorn, A. C. [1999] The relationship between corporate entrepreneurship and strategic management. Strategic Management Journal, 20: 421–444. Crossref, Google Scholar
Becerra-Fernandez, I. and Sabherwal, R. [2001] Organizational knowledge management, A contingency perspective. Journal of Management Information Systems, 18: 23–55. Crossref, Google Scholar
Beckman, T. [1999] The current state of knowledge management. Knowledge Management Handbook. CRC Press, Boca Raton, FL, pp. 1–22. Google Scholar
Belbaly, N., Benbya, H. and Meissonier, R. [2007] An empirical investigation of the customer knowledge creation impact on NPD performance. In Hawaii International Conference on System Science (HICSS-40), Big Island, Hawaii, USA. Google Scholar
Bennett, R. and Gabriel, H. [1999] Organizational factors and knowledge management within large marketing departments: An empirical study. Journal of Knowledge Management, 3: 212–225. Crossref, Google Scholar
Boland, R. J. Jr. and Tenkasi, R. V. [1995] Perspective making and perspective taking in communities of knowing. Organization Science, 6: 350–372. Crossref, Google Scholar
Cavaleri, S. [1994] Soft systems thinking: A pre-condition for organizational learning. Human Systems Management, 13: 259–267. Crossref, Google Scholar
Chandler, A. D. [1962] Strategy and Structure: Chapters in the History of American Industrial Enterprise. MIT Press, Cambridge. Google Scholar
Chase, R. [1997] The knowledge-based organization, An international survey. Journal of Knowledge Management, 1: 38–49. Crossref, Google Scholar
Child, J. [1972] Organizational structure, environment and performance, The role of strategic choice. Sociology, 6: 1–22. Crossref, Google Scholar
Choi, B. and Lee, H. [2002] Knowledge management strategy and its link to knowledge creating process. Expert Systems with Applications, 23: 173–187. Crossref, Google Scholar
Chou, C. and Yang, K.-P. [2011] The interaction effect of strategic orientations on new prodcut performance in the high tech industry, A nonlinear model. Technological Forecasting & Social Change, 78: 63–74. Crossref, Google Scholar
Clark, K. and Wheelwright, S. C. [1993] Managing New Product and Process Development. Free Press, New York, pp. 457–480. Google Scholar
Cooper, L. P. [2003] A research agenda to reduce risk in new product development through knowledge management, A practitioner perspective. Journal of Engineering and Technology Management, 20: 117–140. Crossref, Google Scholar
Cross, R. and Baird, L. [2000] Technology is not enough: Improving performance by building organizational memory. Sloan Management Review, 41: 69–78. Google Scholar
Daft, R. and Lengel, R. [1986] Organizational information requirements, media richness and structural design. Management Science, 32: 554–571. Crossref, Google Scholar
Damanpour, F. [1991] Organizational innovation, A meta-analysis of effects of determinants and moderators. Academy of Management Journal, 34: 555–590. Crossref, Google Scholar
Davenport, T. H., Long, D. and Beers, M. C. [1998] Successful knowledge management projects. Sloan Management Review, 39: 43–57. Google Scholar
Davenport, T. H. and Prusak, L. [1998] Working Knowledge, How Organizations Manage What They Know. Harvard Business School Press, Cambridge. Google Scholar
Demarest, M. [1997] Understanding knowledge management. Long Range Planning, 30: 374–384. Crossref, Google Scholar
DeSouza, K. C. and Evaristo, J. R. [2003] Global knowledge management strategies. European Management Journal, 21: 62–67. Crossref, Google Scholar
Dodgson, M [1993] Organizational learning: A review of some literatures. Organization Studies, 14: 375–394. Crossref, Google Scholar
Dosi, G. [1988] The nature of the innovative process. Technical Change and Economic Theory, eds. G. Dosi et al., Pinter, London, pp. 221–238. Google Scholar
Dougherty, D. [2001] Re-imagining the differentiation and integration of work for sustained product innovation. Organization Science, 12: 6221–6231. Crossref, Google Scholar
Drucker, P. F. [1969] The Age of Discontinuity, Guidelines to Our Changing Society. Harper and Row, New York. Google Scholar
Drucker, P. F. [2001] Management Challenges for the 21st Century. Harper Business, New York. Google Scholar
Ekbia, H. R. and Kling, R. (2003). Power in knowledge management in late modern times. In Academy of Management Best Conference Paper, CMS, New Orleans, USA. Google Scholar
Elenkov, D. S. [2002] Effects of leadership on organizational performance in Russian companies. Journal of Business Research, 55: 467–480. Crossref, Google Scholar
Fulk, J. and DeSanctis, G. (eds.) [1999] Articulation of information technology. Shaping Organization Form, Communication, Connection, and Community. Sage, Thousand Oaks, pp. 5–32. Google Scholar
Galbraith, J. R. [1973] Designing Complex Organizations. Mass Addison-Wesley Publishing Company, Reading. Google Scholar
Galbraith, J. R. and Lawler, E. E. [1998] The challenge of change, organizing for competitive advantage. Tomorrow’s Organization, Crafting Winning Capabilities in a Dynamic World, eds. S. A. Mohrman, J. R. Galbraith, E. E. Lawler et al., Jossey-Bass, San Francisco, pp. 1–20. Google Scholar
Gold, A. H., Malhotra, A. and Segars, A. H. [2001] Knowledge management: An organizational capabilities perspective. Journal of Management Information Systems, 18: 185–214. Crossref, Google Scholar
Grant, R. M. [1996] Toward a knowledge-based theory of the firm. Strategic Management Journal, 17: 109–122. Crossref, Google Scholar
Griffin, A. and Page, A. L. [1993] An interim report on measuring product development success and failure. Journal of Product Innovation Management, 10: 291–308. Crossref, Google Scholar
Griffin, A. and Page, A. L. [1996] PDMA success measurement project: Recommended measures for product development success and failure. Journal of Product Innovation Management, 13: 478–496. Crossref, Google Scholar
Hansen, M. T., Nohria, N. and Tierney, T. [1999] What’s your strategy for managing knowledge? Harvard Business Review, 77: 106–116. Google Scholar
Hart, S. L. [1992] An integrative framework for strategy-making processes. Academy of Management Review, 17: 327–351. Crossref, Google Scholar
Holsapple, C. W. and Joshi, K. D. [2001] Organizational knowledge resources. Decision Support Systems, 31: 39–54. Crossref, Google Scholar
Homburg, C., Krohmer, H. and Workman, J. P. Jr. [1999] Strategic consensus and performance: The role of strategy type and market-related dynamism. Strategic Management Journal, 20: 339–357. Crossref, Google Scholar
Hopper, M. D. [1990] Rattling Sabre-new ways to compete on information. Harvard Business Review, 68: 118–125. Google Scholar
Hornsby, J. S., Kuratko, D. F. and Zahra, S. A. [2002] Middle managers’ perception of the internal environment for corporate entrepreneurship: Assessing a measurement scale. Journal of Business Venturing, 17: 253–273. Crossref, Google Scholar
Howells, J. [2000] Knowledge, innovation, and locations. Knowledge and Space, Economy, eds. J. R. Bryson, P. W. Daniels, N. D. Henry and J. S. Pollard, Routledge, London, pp. 50–62. Google Scholar
Hsu, Y.-H. and Fang, W. [2009] Intellectual capital and new product development performance: The mediating role of organizational learning capability. Technological Forecasting & Social Change, 76: 664–677. Crossref, Google Scholar
Huemer, L., Krogh, G. and Johan, R. [1998] Knowledge and the concept of trust. Knowing in Firms, eds. G. Krogh, J. Roos and D. Kleine, Sage, Thousand Oaks, CA, pp. 123–145. Crossref, Google Scholar
Ichijo, K., Krogh, G. and Nonaka, I. [1998] Knowledge enablers. Knowing in Firms, eds. G. Krogh, J. Roos and D. Kleine, Sage, Thousand Oaks, CA, pp. 173–203. Crossref, Google Scholar
Jarvenpaa, S. L. and Staples, D. S. [2000] The use of collaborative electronic media for information sharing: An exploratory study of determinants. Strategic Information Systems, 9: 129–154. Crossref, Google Scholar
Jaworski, J. and Kohli, A. K. [1993] Market orientation, antecedents and consequences. Journal of Marketing, 57: 53–70. Crossref, Google Scholar
Johannenssen, J. A., Olsen, B. and Olaisen, J. [1999] Aspects of innovation theory based on knowledge management. International Journal of Information Management, 19: 121–139. Crossref, Google Scholar
Johannessen, J. A. and Olsen, B. [2003] Knowledge management and sustainable competence advantages: The impact of dynamic contextual training. International Journal of Information Management, 23: 277–289. Crossref, Google Scholar
Kotabe, M. [1990] Corporate product policy and innovative behavior of European and Japanese multinationals: An empirical investigation. Journal of Marketing, 54: 19–33. Crossref, Google Scholar
Krishnan, V. and Ulrich, K. T. [2001] Product development decisions: A review of the literature. Management Science, 47: 11–21. Crossref, Google Scholar
Lee, H. and Choi, B. [2003] Knowledge management enablers, processes, and organizational performance: An integrative view and empirical examination. Journal of Management Information Systems, 20: 179–228. Crossref, Google Scholar
Lei, D., Hitt, M. A. and Bettis, R. [1996] Dynamic core competences through meta-learning and strategic context. Journal of Management, 22: 549–569. Crossref, Google Scholar
Leonard-Barton, D. [1995] Wellsprings of Knowledge, Building and Sustaining the Sources of Innovation. Harvard Business School Press, Boston. Google Scholar
Levy, D. L., Alvesson, M. and Wıllmott, H. [2001] Critical approaches to strategic management, critical management studies. In Conference Proceedings, Manchester University. Google Scholar
Liu, P.-L., Chen, W.-C. and Tsai, C.-H. [2005] An empirical study on the correlation between the knowledge management method and new product development strategy on product performance in Taiwan’s industries. Technovation, 25: 637–644. Crossref, Google Scholar
Livvarcin, O. (2007). An exploratory study on strategy direction and strategy magnitude in organizations: The strategy vector model. PhD Dissertation, Yeditepe University, pp. 9–10. Google Scholar
Locke, E. A. and Latham, G. P. [1990] A Theory of Goal-Setting and Task Performance. Prentice-Hall, Englewood Cliffs, NJ. Google Scholar
Long, D. D. (1997). Building the knowledge-based organization: How culture drives knowledge behaviors. Working Paper of the Center for Business Innovation, Ernst & Young LLP, Cambridge, MA. Google Scholar
Lusch, R. F., Harvey, M. and Speier, C. [1998] ROI3: The building blocks for successful global organizations in the 21st century. European Management Journal, 16: 714–728. Crossref, Google Scholar
Lynn, G. S., Simpson, J. T. and Souder, W. E. [1997] Effects of organizational learning and information processing behaviors on new product success. Marketing Letters, 8: 33–39. Crossref, Google Scholar
Lynn, G. S., Reilly, R. R. and Akgün, A. E. [2000] Knowledge management in new product teams: Practices and outcomes. IEEE Transactions on Engineering Management, 47: 221–231. Crossref, Google Scholar
Machlup, F. [1983] Semantic quirks in studies of information. The Study of Information: Interdisciplinary Messages, eds. F. Machlup and U. Mansfield, John Wiley & Sons, New York, pp. 641–671. Google Scholar
Madhavan, R. and Grover, R. [1998] From embedded knowledge to embodied knowledge: New product development as knowledge management. Journal of Marketing, 62: 1–12. Crossref, Google Scholar
Malhotra, Y. [2001] Expert systems for knowledge management: Crossing the chasm between information processing and sense making. Expert Systems with Applications, 20: 7–16. Crossref, Google Scholar
Mallick, D. N. and Schroeder, R. G. [2003] An integrated framework for measuring product development performance in high technology industries. Production and Operations Management, 14: 142–158. Crossref, Google Scholar
March, J. [1991] Exploration and exploitation in organizational learning. Organization Science, 2: 71–86. Crossref, Google Scholar
Marr, B. and Spender, J.-C. [2004] Measuring knowledge assets, implications of the knowledge economy for performance measurement. Measuring Business Excellence, 8: 18–27. Crossref, Google Scholar
Martín-de Castro, G., Delgado-Verde, M., Navas-Lopéz, J. E. and Cruz-González, J. [2013] The moderating role of innovation culture in the relationship between knowledge assets and product innovation. Technological Forecasting & Social Change, 80: 351–363. Crossref, Google Scholar
Maybury, M. T. [2003] Knowledge management at the MITRE corporation. Knowledge Management in IT/Consulting Companies, ed. M. Rao, McGraw-Hill, New York. Google Scholar
McDonough, E. F., Kahn, K. B. and Griffin, A. [1999] Managing communication in global product development teams. IEEE Transactions on Engineering Management, 46: 375–386. Crossref, Google Scholar
Miles, R. E. and Snow, C. C. [1984] Fit, failure and the hall of fame. California Management Review, 14: 10–28. Crossref, Google Scholar
Miles, R. E. and Snow, C. C. [1994] Fit Failure and the Hall of Fame: How Companies Succeed or Fail. Macmillan Inc., New York. Google Scholar
Miller, F. (2005). I = 0 (Information has no intrinsic meaning). Fernstar, Brisbane. Available at: http://InformationR.net/ir/8–1/paper140.html [accessed on 15 December 2005]. Google Scholar
Mintzberg, H. [1979] The Structuring of Organization. Prentice-Hall, Englewood Cliffs, NJ. Google Scholar
Mohrman, S. A., Cohen, S. G. and Mohrman, A. M. Jr. [1995] Designing Team-Based Organizations: New Forms of Knowledge Work. Jossey-Bass, San Francisco. Google Scholar
Mohrman, S. A., Finegold, D. and Mohrman, A. M. Jr. [2003] An empirical model of the organization knowledge system in new product development firms. Journal of Engineering Technology Management, 20: 7–38. Crossref, Google Scholar
Moorman, C. [1995] Organizational market information processes: Cultural antecedents and new product outcomes. Journal of Marketing Research, 32(3): 318–335. Crossref, Google Scholar
Nahapiet, J. and Ghoshal, S. [1998] Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23: 242–266. Crossref, Google Scholar
Narver, J. C. and Slater, S. F. [1990] The effect of a market orientation on business profitability. Journal of Marketing, 54: 20–35. Crossref, Google Scholar
Nelson, K. M. and Cooprider, J. G. [1996] The contribution of shared knowledge to IS group performance. MIS Quarterly, 20: 409–429. Crossref, Google Scholar
Nonaka, I. and Takeuchi, H. [1995] The Knowledge Creating Company. Oxford University Press, New York. Crossref, Google Scholar
Nonaka, I. [1994] A dynamic theory of knowledge creation. Organization Science, 5: 14–37. Crossref, Google Scholar
O’Dell, C. and Grayson, J. [1999] Knowledge transfer: Discover your value proposition. Strategy & Leadership, 27: 10–15. Crossref, Google Scholar
Olson, E. M., Orville, C. W. and Ruekert, R. W. [1995] Organizing for new product development: The moderating role of product innovativeness. Journal of Marketing, 59: 48–62. Crossref, Google Scholar
Polanyi, M. [1966] The Tacit Dimension. Doubleday, New York. Google Scholar
Prahalad, C. K. and Hamel, G. [1990] The core competence of the corporation. Harvard Business Review, 68: 79–93. Google Scholar
Prahalad, C. K. [1995] How HR can help to win the future. People Management, 1(1): 34–36. Google Scholar
Rapert, M. and Wren, B. [1998] Reconsidering organizational structure: A dual perspective of frameworks and processes. Journal of Managerial Issues, 10: 287–302. Google Scholar
Raub, S. and Von Wittich, D. [2004] Implementing knowledge management: Three strategies for effective CKOs. European Management Journal, 22: 714–724. Crossref, Google Scholar
Raven, A. and Prasser, S. G. [1996] Information technology support for the creation and transfer of tacit knowledge in organizations. In Ramsower, R. (ed.), Association for Information Systems 1996 Americas Conference Conference. Phoenix: CAIS, 1996 (available at hsb.baylor.edu/ramsower/ais.ac.96/papers/RAVEN.htm). Google Scholar
Revilla, E. and Cury, T. (2008). Antecedents and consequences of knowledge integration in product development: An empirical evidence. Available at SSRN: https://ssrn.com/abstract=1134491 or http://dx.doi.org/10.2139/ssrn.1134491. Google Scholar
Riggins, F. J. and Rhee, H. [1999] Developing the learning network using extranets. International Journal of Electronic Commerce, 4: 65–83. Crossref, Google Scholar
Roberts, J. [2000] From know-how to show-how? Questioning the role of information and communication technologies in knowledge transfer. Technology Analysis & Strategic Management, 12: 429–443. Crossref, Google Scholar
Scott, J. E. [1998] Organizational knowledge and the Intranet. Decision Support Systems, 23: 3–17. Crossref, Google Scholar
Sharma, P. B., Garg, S. and Gupta, P. C. [2004] Market dynamism, manufacturing flexibility and type of automation in Indian industries: A survey. In Hinduja, S. (eds.), Proceedings of the 34th International MATADOR Conference. Springer, London. Available at: https://link.springer.com/chapter/10.1007%2F978-1-4471-0647-0_54 or https://doi.org/10.1007/978-1-4471-0647-0_54. Google Scholar
Sherman, J. D., Souder, W. E. and Jenssen, S. A. [2000] Differential effects of the primary forms of crossfunctional integration on product development cycle time. Journal of Product Innovation Management, 17: 257–267. Crossref, Google Scholar
Sherman, J. D., Berkowitz, D. and Souder, W. E. [2005] New product development performance and the interaction of cross-functional integration and knowledge management. The Journal of Product Innovation Management, 22: 399–411. Crossref, Google Scholar
Simon, H. A. [1985] Spurious correlation: A causal interpretation. Causal Models in the Social Sciences, ed. H. M. Blalock. Aldine, New York, pp. 5–17. Google Scholar
Skyrme, D. and Aminon, D. [1997] The knowledge agenda. Journal of Knowledge Management, 1: 27–37. Crossref, Google Scholar
Snyman, R. and Kruger, C. J. [2004] The Interdependency between strategic management and strategic knowledge management. Journal of Knowledge Management, 8: 5–19. Crossref, Google Scholar
Song, M. and Parry, M. E. [1997] A cross-national comparative study of new product development processes: Japan and the United States. Journal of Marketing, 61: 1–18. Crossref, Google Scholar
Stalk, G. Jr. [1988] Time: The next source of competitive advantage. Harvard Business Review, 7: 41–51. Google Scholar
Stein, E. W. and Zwass, V. [1995] Actualizing organizational memory with information systems. Information Systems Research, 6: 85–117. Crossref, Google Scholar
Stewart, T. A. [1994] Your company’s most valuable asset: Intellectual capital. Fortune, 130: 68–74. Google Scholar
Stonehouse, G. H. and Pemberton, J. D. [1999] Learning and knowledge management in the intelligent organization. Participation & Empowerment: An International Journal, 7: 131–144. Crossref, Google Scholar
Sutcliffe, K. M. and Huber, G. P. [1998] Firm and industry as determinants of executive perceptions of the environment. Strategic Management Journal, 19: 793–807. Crossref, Google Scholar
Tagerden, L. R., Yolanda, S. and Banbury, C. [2003] Linkining strategy processes to performance outcomes in dynamic environments: The need to target multiple bull’s eyes. Journal of Management Issues, 15: 133–153. Google Scholar
Tatikonda, M. V. and Rosenthal, S. R. [2000] Successful implementation of product development projects: Balancing firmness and flexibility in the innovation process. Journal of Operations Management, 18: 401–425. Crossref, Google Scholar
Teece, D. J. and Pisano, G. [1994] The dynamic capabilities of firms: An introduction. Industrial and Corporate Change, 3: 537–556. Crossref, Google Scholar
Ulusoy, G., Alpkan, L., Kılıç, K., Öner, M. A. (2009). İmalat Sanayiinde İnovasyon Modelleri ve Uygulamaları Projesi, Tubitak Projesi, Proje No: Sobag - 105k105, İstanbul, Ocak Available from: https://www.researchgate.net/profile/Atilla_Oener/publication/275352231_Imalat_Sanayiinde_Inovasyon_Modelleri_Ve_Uygulamalari_Projesi_Raporu_-_2008/links/553a63e50cf2c415bb08c56e/Imalat-Sanayiinde-Inovasyon-Modelleri-Ve-Uygulamalari-Projesi-Raporu-2008.pdf. Google Scholar
Vaccaro, A., Parente, R. and Veloso, F. M. [2010] Knowlege management tools, inter-organizational relationships, innovation and firm performance. Technological Forecasting & Social Change, 77: 1076–1089. Crossref, Google Scholar
Weick, K. E. [1995] Sensemaking in Organizations. Sage, Thousand Oaks, CA. Google Scholar
Wickramasinghe, N. [2003] Do we practice what we preach? Are knowledge management systems in practice truly reflective of knowledge management systems in theory? Business Process Management Journal, 9: 295–311. Crossref, Google Scholar
Wiig [1997] Knowledge management: Where did it come from and where will it go? Expert Systems with Applications, 13: 1–14. Crossref, Google Scholar
Woodman, R., Sawyer, J. and Griffin, R. [1993] Toward a theory of organizational creativity. Academy of Management Review, 18: 293–321. Crossref, Google Scholar
Yılmaz, C., Alpkan, L. and Ergun, E. [2005] Cultural determinants of customer- and learning-oriented value systems and their joint effects on firm performance. Journal of Business Research, 58: 1340–1352. Crossref, Google Scholar
Zander, D. and Kogut, B. [1995] Knowledge and the speed of the transfer and imitation of organizational capabilities: An empirical test. Organization Science, 6: 76–92. Crossref, Google Scholar
Zirger, B. J. and Maidique, M. [1990] A model of new product development: An empirical test. Management Science, 36: 867–883. Crossref, Google Scholar