Determinants of the Level of Knowledge Application: A Knowledge-Based and Information-Processing Perspective*
01 Sep 2005-Journal of Product Innovation Management (Blackwell Publishing)-Vol. 22, Iss: 5, pp 430-444
TL;DR: In this paper, the authors used the knowledge-based theory of the firm and considered its roots in the information-processing approach to organization theory to identify and structure potential antecedents of knowledge application.
About: This article is published in Journal of Product Innovation Management.The article was published on 2005-09-01. It has received 169 citations till now. The article focuses on the topics: Organizational learning & Knowledge value chain.
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TL;DR: A conceptual model based on the information-processing approach is developed that suggests an early reduction of market and technical uncertainty as well as an initial planning before development have a positive impact on NPD project success.
Abstract: Tohoku University, Graduate School of Engineering, Management of Science and TechnologyDepartment, Sendai, 980-8579, Japan. nagahira-akio@nifty.comThis study of Japanese New Product Development (NPD) projects explores the fuzzy frontend of innovation. The goal of the paper is twofold: First, we analyse the impact of the fuzzyfront end on the success of all the NPD projects. We develop a conceptual model based on theinformation-processing approach. A structural equation model was fitted to data from 497NPD projects in Japanese manufacturing firms to test the proposed model. The empiricalanalysis suggests that an early reduction of market and technical uncertainty as well as aninitial planning before development have a positive impact on NPD project success. The modelaccounts for 17% of the variance of the efficiency and24%of the variance ofthe effectiveness-dependent variable. Thus, the front end phase is an important driver of NPD project success.Second, we compare the fuzzy front end of incremental to radical NPD projects. Althoughthese projects differ in many aspects of newness, we found only a few differences with regard tothe fuzzy front end. For instance, it was more difficult to estimate the market size and pricesensitivity of the customers during the fuzzy front end of the radical NPD projects comparedwith the incremental projects. Implications of the empirical results and limitations of the studyare discussed.
264 citations
TL;DR: In this article, the authors present the strategies that low-and medium-technology (LMT) firms adopt to generate technological innovation and investigate the impact of these approaches on the firms' innovation performances.
244 citations
TL;DR: In this paper, the authors investigated the extent to which external technology acquisition effects a firm's performance and how this effect is moderated by internal RD, finding that the positive impact of external technology acquisitions on firm performance increases with the level of internal R&D efforts.
232 citations
TL;DR: In this paper, the authors proposed a novel research model to investigate the pivotal mediating role of knowledge worker productivity between knowledge management processes (knowledge generation, knowledge sharing, and knowledge application) and innovation.
206 citations
TL;DR: A model was proposed for defining the performance with the relationships between these issues and knowledge assets and process capabilities are two different but relevant drivers in a value creation process.
Abstract: Purpose – This paper aims at defining a model to properly evaluate knowledge management (KM) value. Empirical studies have found little or no improvement in organizational performance despite large KM investments. Design/methodology/approach – The KM-driven performances are rooted in knowledge resources based on the knowledge-based view. Further, the KM-driven performances are mediated by business process capabilities. Organizational learning is critically complementary to KM for being a moderator to knowledge resources. A model was proposed for defining the performance with the relationships between these issues. A survey was conducted for collecting empirical data. Partial least squares was used for path analysis. Findings – Knowledge resources lay a foundation on the KM-driven performance through the mediator of business process capabilities. Specifically, knowledge assets and process capabilities are two different but relevant drivers in a value creation process. The findings particularly provide evid...
198 citations
Cites background from "Determinants of the Level of Knowle..."
...On the contrary, knowledge application and integration refer to the abilities of a firm to respond to market change effectively through transforming knowledge asset into new products or services (Song et al., 2005)....
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References
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TL;DR: In this paper, the authors provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development, and present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests.
Abstract: In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.
34,720 citations
TL;DR: In this paper, the authors argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities.
Abstract: In this paper, we argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities. We label this capability a firm's absorptive capacity and suggest that it is largely a function of the firm's level of prior related knowledge. The discussion focuses first on the cognitive basis for an individual's absorptive capacity including, in particular, prior related knowledge and diversity of background. We then characterize the factors that influence absorptive capacity at the organizational level, how an organization's absorptive capacity differs from that of its individual members, and the role of diversity of expertise within an organization. We argue that the development of absorptive capacity, and, in turn, innovative performance are history- or path-dependent and argue how lack of investment in an area of expertise early on may foreclose the future development of a technical capability in that area. We formulate a model of firm investment in research and development (R&D), in which R&D contributes to a firm's absorptive capacity, and test predictions relating a firm's investment in R&D to the knowledge underlying technical change within an industry. Discussion focuses on the implications of absorptive capacity for the analysis of other related innovative activities, including basic research, the adoption and diffusion of innovations, and decisions to participate in cooperative R&D ventures. **
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TL;DR: In this paper, the authors propose a paradigm for managing the dynamic aspects of organizational knowledge creating processes, arguing that organizational knowledge is created through a continuous dialogue between tacit and explicit knowledge.
Abstract: This paper proposes a paradigm for managing the dynamic aspects of organizational knowledge creating processes. Its central theme is that organizational knowledge is created through a continuous dialogue between tacit and explicit knowledge. The nature of this dialogue is examined and four patterns of interaction involving tacit and explicit knowledge are identified. It is argued that while new knowledge is developed by individuals, organizations play a critical role in articulating and amplifying that knowledge. A theoretical framework is developed which provides an analytical perspective on the constituent dimensions of knowledge creation. This framework is then applied in two operational models for facilitating the dynamic creation of appropriate organizational knowledge.
17,196 citations
TL;DR: In this article, a general null model based on modified independence among variables is proposed to provide an additional reference point for the statistical and scientific evaluation of covariance structure models, and the importance of supplementing statistical evaluation with incremental fit indices associated with the comparison of hierarchical models.
Abstract: Factor analysis, path analysis, structural equation modeling, and related multivariate statistical methods are based on maximum likelihood or generalized least squares estimation developed for covariance structure models. Large-sample theory provides a chi-square goodness-of-fit test for comparing a model against a general alternative model based on correlated variables. This model comparison is insufficient for model evaluation: In large samples virtually any model tends to be rejected as inadequate, and in small samples various competing models, if evaluated, might be equally acceptable. A general null model based on modified independence among variables is proposed to provide an additional reference point for the statistical and scientific evaluation of covariance structure models. Use of the null model in the context of a procedure that sequentially evaluates the statistical necessity of various sets of parameters places statistical methods in covariance structure analysis into a more complete framework. The concepts of ideal models and pseudo chi-square tests are introduced, and their roles in hypothesis testing are developed. The importance of supplementing statistical evaluation with incremental fit indices associated with the comparison of hierarchical models is also emphasized. Normed and nonnormed fit indices are developed and illustrated.
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TL;DR: In this paper, the authors consider the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning and examine some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space.
Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.
16,377 citations