A model of the relationship between strategic orientation and product innovation under the mediating effect of customer knowledge management

Abstract

Product innovation has been considered one of the main drivers of value creation, the prerequisite for market success, and often for business survival, particularly in high-tech industries. At this, strategic orientation is seen as the principle directed to achieve superior innovation. Miles and Snow’s strategic orientation has been one of the most important and intensively studied typologies throughout the world, even though empirical evidence on its particular propositions is not clear enough. Direct and indirect impact of strategic orientation on product innovation can be influenced by certain environmental and organizational contexts as well as other capabilities, e.g., customer knowledge management (CKM). Studies carried out on strategic typologies and CKM have usually reported mixed results. The purpose of this conceptual paper is to provide a framework to enhance the understanding and to investigate the relationship between strategic orientation and product innovation and the mediating effect of CKM, at the same time contributing to the existing number of valuable researches that provide the much needed knowledge in understanding product innovation phenomenon. Hence, there is a need to conduct an empirical study to validate the proposed conceptual framework and to ascertain the relationship among different variables in this framework.

Bibliography

1. Alegre, J., Sengupta, K., & Lapiedra, R. (2013). Knowledge management and innovation performance in a high-tech SMEs industry. International Small Business Journal, 31(4), 454-470.

2. Alshekaili, S. A. R., & Boerhannoeddin, A. (2011). Human capital approach towards enhancing innovation performance in Omani industrial firms: The role of knowledge management. Progress in Business Innovation & Technology Management, 1, 23-33.

3. Ansoff, H. I. (1965). Corporate strategy: business policy for growth and expansion: McGraw-Hill Book.

4. Ansoff, H. I., & Stewart, J. M. (1967). Strategies for a technology-based business. Harvard business review, 45(6), 71-83.

5. Baker, W. E., & Sinkula, J. M. (1999). The synergistic effect of market orientation and learning orientation on organizational performance. Journal of the Academy of Marketing Science, 27(4), 411-427.

6. Belkahla Hakimi, W., Triki, A., & Mjahed Hammami, S. (2014). Developing a customer knowledge-based measure for innovation management. European Journal of innovation management, 17(3), 349-374.

7. Belkahla, W., & Triki, A. (2011). Customer knowledge enabled innovation capability: proposing a measurement scale. Journal of knowledge management, 15(4), 648-674.

8. Bilan, Y., Mishchuk, H., & Dzhyhar, T. (2017). Human capital factors and remuneration: analysis of relations, modelling of influence. Business: Theory and Practice, 18, 208-214.

9. Bowen, H. K., Clark, K. B., Holloway, C. A., & Wheelwright, S. C. (1994). Development projects: The engine of renewal. Harvard Business Review, 72(5), 110-120.

10. Cássia, A. d. R., & Zilber, S. N. (2016). Strategic orientation and innovative activities: an analysis using the PINTEC data from 1998 to 2011. Gestão & Produção, 23(3), 447-458.

11. Cepeda-Carrion, I., Martelo-Landroguez, S., Leal-Rodríguez, A. L., & Leal-Millán, A. (2017). Critical processes of knowledge management: An approach toward the creation of customer value. European Research on Management and Business Economics, 23(1), 1-7.

12. Cerchione, R., & Esposito, E. (2017). Using knowledge management systems: A taxonomy of SME strategies. International journal of information management, 37(1), 1551-1562.

13. Darroch, J., & McNaughton, R. (2002). Examining the link between knowledge management practices and types of innovation. Journal of intellectual capital, 3(3), 210-222.

14. Dasgupta, M., Sahay, A., & Gupta, R. (2009). The role of knowledge management in innovation. Journal of Information & Knowledge Management, 8(04), 317-330.

15. Deshpandé, R., & Farley, J. U. (2004). Organizational culture, market orientation, innovativeness, and firm performance: an international research odyssey. International Journal of Research in Marketing, 21(1), 3-22.

16. Falasca, M., Zhang, J., Conchar, M., & Li, L. (2017). The impact of customer knowledge and marketing dynamic capability on innovation performance: an empirical analysis. Journal of Business & Industrial Marketing, 32(7), 901-912.

17. Ferraresi, A. A., Quandt, C. O., dos Santos, S. A., & Frega, J. R. (2012). Knowledge management and strategic orientation: leveraging innovativeness and performance. Journal of knowledge management, 16(5), 688-701.

18. Flink, C. M. (2015). Multidimensional conflict and organizational performance. The American Review of Public Administration, 45(2), 182-200.

19. Fossas-Olalla, M., Minguela-Rata, B., López-Sánchez, J.-I., & Fernández-Menéndez, J. (2015). Product innovation: When should suppliers begin to collaborate?. Journal of Business Research, 68(7), 1404-1406.

20. Gatignon, H., & Xuereb, J.-M. (1997). Strategic orientation of the firm and new product performance. Journal of Marketing Research, 77-90.

21. Gnjidić, V. (2014). Researching the dynamics of Miles and Snow's strategic typology. Management: journal of contemporary management issues, 19(1), 93-117.

22. Grinstein, A. (2008a). The effect of market orientation and its components on innovation consequences: a meta-analysis. Journal of the Academy of Marketing Science, 36(2), 166-173.

23. Haneda, S., & Ito, K. (2018). Organizational and human resource management and innovation: Which management practices are linked to product and/or process innovation? Research Policy, 47(1), 194-208.

24. Huang, F., & Rice, J. (2012). Openness in product and process innovation. International Journal of Innovation Management, 16(04), 1250020.

25. Hussain, J., Rahman, W., & Shah, F. A. (2016). Market orientation and performance: the interaction effect of entrepreneurial orientation. Pakistan Journal of Commerce and Social Sciences, 10(2), 388.

26. Jasinskas, E., Emeljanovas, A., & Bilan, Y. (2015). Features of Qualification Improvement of Human Resources in Public and Private Sector. Transformations in Business & Economics, 14(2B), 462-481.

27. Ingram, T., Kraśnicka, T., Wronka-Pośpiech, M., Głód, G., & Głód, W. (2016). Relationships Between Miles and Snow Strategic Types and Organizational Performance in Polish Production Companies. Journal of Management and Business Administration, 24(1), 17-4

28. Kaya, N., & Patton, J. (2011). The effects of knowledge‐based resources, market orientation and learning orientation on innovation performance: An empirical study of Turkish firms. Journal of international development, 23(2), 204-219.

29. Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. The Journal of Marketing, 1-18.

30. Lane, P. J., Koka, B. R., & Pathak, S. (2006). The reification of absorptive capacity: A critical review and rejuvenation of the construct. Academy of management review, 31(4), 833-863.

31. Lin, R.-J., Che, R.-H., & Ting, C.-Y. (2012). Turning knowledge management into innovation in the high-tech industry. Industrial Management & Data Systems, 112(1), 42-63.

32. Liu, S. (2010). The Study on the Relationship between Business Strategy Type and Service Innovative Performance. Paper presented at the E-Product E-Service and E-Entertainment (ICEEE), 2010 International Conference on.

33. Madhoushi, M., Sadati, A., Delavari, H., Mehdivand, M., & Mihandost, R. (2011). Entrepreneurial orientation and innovation performance: The mediating role of knowledge management. Asian Journal of Business Management, 3(4), 310-316.

34. Mantere, S., Schildt, H. A., & Sillince, J. A. (2012). Reversal of strategic change. Academy of Management Journal, 55(1), 172-196.

35. Massaro, M., Handley, K., Bagnoli, C., & Dumay, J. (2016). Knowledge management in small and medium enterprises: a structured literature review. Journal of knowledge management, 20(2), 258-291.

36. Menguc, B., & Auh, S. (2005). A test of strategic orientation formation versus strategic orientation implementation: The influence of TMT functional diversity and inter-functional coordination. Journal of Marketing Theory and Practice, 13(2), 4-19.

37. Miles, R. E., & Snow. (1978). Organizational Strategy, Structure, and Process. New York: McGraw-Hill.

38. Mintzberg, H. (1973). Strategy-making in three modes. California Management Review, 16(2), 44-53.

39. Mintzberg, H. (1979). The structuring of organization: A synthesis of the research: Prentice-Hall.

40. Mishchuk, H., Bilan, Y., & Pavlushenko, L. (2016). Knowledge Management Systems: Issues in Enterprise Human Capital Management Implementation in Transition Economy. Polish Journal of Management Studies, 14(1), 163-173.

41. Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. The Journal of Marketing, 20-35.

42. Nastaran, T., Reza, E., & Mohammad, D. (2014). Customer knowledge management, innovation capability and business performance: a case study of the banking industry. Journal of knowledge management, 18(3), 591-610. doi:doi:10.1108/JKM-11-2013-0446

43. Nieves, J., Quintana, A., & Osorio, J. (2016). Organizational knowledge, dynamic capabilities and innovation in the hotel industry. Tourism and Hospitality Research, 16(2), 158-171.

44. O'Regan, N., & Ghobadian, A. (2005). Innovation in SMEs: the impact of strategic orientation and environmental perceptions. International Journal of Productivity and Performance Management, 54(2), 81-97.

45. P. Pleshko, L., A. Heiens, R., & Peev, P. (2014). The impact of strategic consistency on market share and ROA. International Journal of Bank Marketing, 32(3), 176-193.

46. Pawlowsky, P., & Schmid, S. (2012). Interrelations between strategic orientation, knowledge management, innovation and performance. Empirical findings from a national survey in Germany. International Journal of Knowledge Management Studies, 5(1-2), 185-20

47. Porter, M. E. (1980). Competitive Strategy New York. Google Scholar.

48. Porter, M. E. (1985). Competitive advantage free press. New York.

49. Potecea, V., & Cebuc, G. (2011). The importance of innovation in international business. The USV Annals of Economics and Public Administration, 10(3), 157-161.

50. Poór, J., Juhász, T., Machová, R., Bencsik, A., & Bilan, S. (2018). Knowledge management in human resource management: Foreign-owned subsidiaries’ practices in four CEE countries. Journal of International Studies, 11(3), 295-308. doi:10.14254/2071-8330.20

51. Rastogi, P. (2000). Knowledge management and intellectual capital–the new virtuous reality of competitiveness. Human systems management, 19(1), 39-48.

52. Ritala, P., Henttonen, K., Salojärvi, H., Sainio, L.-M., & Saarenketo, S. (2013). Gone fishing for knowledge? The effect of strategic orientations on the scope of open knowledge search. Baltic Journal of Management, 8(3), 328-348.

53. Rollins, M., & Halinen, A. (2005). Customer knowledge management competence: Towards a theoretical framework. Paper presented at the System Sciences, 2005. HICSS'05. Proceedings of the 38th Annual Hawaii International Conference on.

54. Sanaz, K., Mona, J. P., & Hossein, M. (2017). Successful customer knowledge management implementation through social media capabilities. VINE Journal of Information and Knowledge Management Systems, 47(3), 353-371. doi:doi:10.1108/VJIKMS-11-2016-0066

55. Sharma, P., Davcik, N. S., & Pillai, K. G. (2016). Product innovation as a mediator in the impact of R&D expenditure and brand equity on marketing performance. Journal of Business Research, 69(12), 5662-5669.

56. Slater, S. F., Olson, E. M., & Hult, G. T. M. (2006). The moderating influence of strategic orientation on the strategy formation capability–performance relationship. Strategic Management Journal, 27(12), 1221-1231.

57. Slotegraaf, R. J., & Pauwels, K. (2008). The impact of brand equity and innovation on the long-term effectiveness of promotions. Journal of Marketing Research, 45(3), 293-306.

58. Song, M., Nason, R. W., & Di Benedetto, C. A. (2008). Distinctive marketing and information technology capabilities and strategic types: A cross-national investigation. Journal of International Marketing, 16(1), 4-38.

59. Spanjol, J., Mühlmeier, S., & Tomczak, T. (2012). Strategic orientation and product innovation: Exploring a decompositional approach. Journal of Product Innovation Management, 29(6), 967-985.

60. Stevanović, M., Marjanović, D., & Štorga, M. (2016). Idea management in product innovation-the empirical research results. Tehnički vjesnik: znanstveno-stručni časopis tehničkih fakulteta Sveučilišta u Osijeku, 23(5), 1285-1294.

61. Taherparvar, N., Esmaeilpour, R., & Dostar, M. (2014). Customer knowledge management, innovation capability and business performance: a case study of the banking industry. Journal of knowledge management, 18(3), 591-610.

62. Tseng, S. M., & Fang, Y. Y. (2015). Customer Knowledge Management Performance Index. Knowledge and Process Management, 22(2), 68-77.

63. Tung, L. (2004). Knowledge management: An exploratory study on manufacturing companies in Penang. Unpublished MBA dissertation, Olympia College Penang, Nottingham Trent University, United Kingdom.

64. Tutar, H., Nart, S., & Bingöl, D. (2015). The effects of strategic orientations on innovation capabilities and market performance: the case of ASEM. Procedia-Social and Behavioral Sciences, 207, 709-719.

65. Venkatraman, N. (1989). Strategic orientation of business enterprises: The construct, dimensionality, and measurement. Management science, 35(8), 942-962.

66. Voit, S., Tkachenko, V., & Oleshkevich, I. (2018). Intellectual potential as a means of reproduction and renewal of the unity of productive forces and industrial relations. Economics, Management and Sustainability, 3(1), 34-43.

67. Watkins, K., & Marsick, V. (1996). In action. Creating the Learning Organization. Alexandria VA: American Society for Training and Development.

68. Yu-Pei, W., Meng-Ying, H., & Li-Ke, L. (2016). Impact of Customer Knowledge Management on Enterprise Innovation Performance. DEStech Transactions on Engineering and Technology Research(sste).

69. Zaefarian, G., Forkmann, S., Mitręga, M., & Henneberg, S. C. (2017). A capability perspective on relationship ending and its impact on product innovation success and firm performance. Long Range Planning, 50(2), 184-199.

70. Zheng, W., Yang, B., & McLean, G. N. (2010). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business Research, 63(7), 763-771.

71. Zhou, K. Z., Yim, C. K., & Tse, D. K. (2005). The effects of strategic orientations on technology-and market-based breakthrough innovations. Journal of marketing, 69(2), 42-60.