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Functional Chains of Knowledge Management - Effects on Firms' Innovative Performance


Uwe Cantner


University of Jena - Economics Department

Kristin Joel


University of Jena

November 5, 2007

Jena Economic Research Paper No. 2007-080

Abstract:     
The aim of this paper is to investigate the role of Knowledge Management (KM) for the innovation success of firms. It is assumed that the functional chains of KM lead directly and indirectly to more innovative success via enhancing the recombination of internal and external knowledge assets. To analyse the embedding of KM in a firm's internal system of innovation we establish a structural equation model. We capture KM as latent concept and trace different functional chains by which KM impacts. Using data on KM and innovation success of 351 German firms of the manufacturing sector and knowledge-intensive services located in Thuringia and Hesse, our findings confirm the (dynamic) capability function of KM, which leads via improving exploitation of internal and external innovation assets to more innovation success.

Number of Pages in PDF File: 26

Keywords: Knowledge management, innovation, absorptive capacity, resource-based view, structural equation modelling

JEL Classification: O32, D21, C3

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Date posted: November 5, 2007 ; Last revised: November 15, 2007

Suggested Citation

Cantner, Uwe and Joel, Kristin, Functional Chains of Knowledge Management - Effects on Firms' Innovative Performance (November 5, 2007). Jena Economic Research Paper No. 2007-080. Available at SSRN: http://ssrn.com/abstract=1027561 or http://dx.doi.org/10.2139/ssrn.1027561

Contact Information

Uwe Cantner (Contact Author)
University of Jena - Economics Department ( email )
Carl-Zeiss-Str. 3
07743 Jena
Germany
Kristin Joel
University of Jena ( email )
Furstengraben 1
Jena, Thuringa 07743
Germany
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