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

26 Pages Posted: 5 Nov 2007 Last revised: 15 Nov 2007

Uwe Cantner

Friedrich Schiller University Jena

Kristin Joel

University of Jena

Date Written: November 5, 2007

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.

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

JEL Classification: O32, D21, C3

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: https://ssrn.com/abstract=1027561 or http://dx.doi.org/10.2139/ssrn.1027561

Uwe Cantner (Contact Author)

Friedrich Schiller University Jena ( email )

Fuerstengraben 1
Jena, Thuringa 07743
Germany

Kristin Joel

University of Jena ( email )

Furstengraben 1
Jena, Thuringa 07743
Germany

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