Target Costing, Knowledge Management Activities, and Corporate Innovation

This study empirically investigated the relationships among organizational culture, target costing, knowledge management activities, and corporate innovations. The results of this study showed that innovative and supportive culture positively affects the adoption degrees of target costing. According to the results, it was observed that target costing as well as innovative and supportive culture have a positive impact on levels of knowledge management activities(i.e., knowledge creation, sharing, storage, and application). It was also demonstrated that organizational culture has an indirect effect on activation of knowledge management activities through target costing. Thus, to enhance knowledge management activities, target costing must be aligned with appropriate types of organizational culture. In examining the impact of knowledge management activities on the frequencies of product and process innovations, no significant effect was found. Additional analyses that compare across three groups(i.e., low level group, middle level group and high level group in knowledge management activities) and between two groups(i.e., between high level group and middle level group or between high level group and low level group) were performed. The results of comparison showed that the degrees of product and process innovations are highest in high level group, but no significant differences are found in the degrees of innovations between middle level group and low level group.

[1]  Juan-Gabriel Cegarra-Navarro,et al.  Implementing e-business through organizational learning: An empirical investigation in SMEs , 2007, Int. J. Inf. Manag..

[2]  D. Juran,et al.  Real world supply chain assessment and improvement , 2002 .

[3]  Georg von Krogh,et al.  The quality of group tacit knowledge , 2008, J. Strateg. Inf. Syst..

[4]  John Bessant,et al.  KNOWLEDGE MANAGEMENT ROUTINES FOR INNOVATION PROJECTS: DEVELOPING A HIERARCHICAL PROCESS MODEL , 2003 .

[5]  H. Dekker,et al.  A survey of the adoption and use of target costing in Dutch firms , 2003 .

[6]  Robert M. Morgan,et al.  The Role of Existing Knowledge in New Product Innovativeness and Performance , 2003, Decis. Sci..

[7]  Alberto Carneiro,et al.  How does knowledge management influence innovation and competitiveness? , 2000, J. Knowl. Manag..

[8]  David A. Nadler,et al.  Organizing for Innovation , 1986 .

[9]  Alfred E. Seaman,et al.  Predicting change in management accounting systems: national culture and industry effects , 2001 .

[10]  Gee-Woo Bock,et al.  Knowledge management and process innovation: the knowledge transformation path in Samsung SDI , 2002, J. Knowl. Manag..

[11]  L. Smircich.  Concepts of Culture and Organizational Analysis. , 1983 .

[12]  Kun Chang Lee,et al.  KMPI: measuring knowledge management performance , 2005, Inf. Manag..

[13]  Dorothy E. Leidner,et al.  An Empirical Examination of the Influence of Organizational Culture on Knowledge Management Practices , 2005, J. Manag. Inf. Syst..

[14]  C. J. Wolfe,et al.  Knowledge Sharing: The Effects of Incentives, Environment, and Person , 2008, J. Inf. Syst..

[15]  Tzu-Chuan Chou,et al.  A path model linking organizational knowledge attributes, information processing capabilities, and perceived usability , 2007, Inf. Manag..

[16]  Marina du Plessis,et al.  What bars organisations from managing knowledge successfully? , 2008, Int. J. Inf. Manag..

[17]  Reginald Tomas Yu-Lee.  Target costing: what you see is not what you get , 2002 .

[18]  Yongtae Park,et al.  On THE CHARACTERISTICS OF INNOVATIVE FIRMS IN KOREA: THE ROLE OF R&D AND INNOVATION TYPE , 1999 .

[19]  Shu-hsien Liao,et al.  Relationships between knowledge acquisition, absorptive capacity and innovation capability: an empirical study on Taiwan’s financial and manufacturing industries , 2010, J. Inf. Sci..

[20]  Ernesto M. Reza,et al.  Organizational Integration and Process Innovation , 1992 .

[21]  R. McDermott.  Why Information Technology Inspired but Cannot Deliver Knowledge Management , 1999 .

[22]  Chung-Jen Chen,et al.  How organizational climate and structure affect knowledge management - The social interaction perspective , 2007, Int. J. Inf. Manag..

[23]  H. Yazdifar,et al.  A Comparative Study of the Adoption and Implementation of Target Costing in the UK, Australia and New Zealand , 2012 .

[24]  M. Hannan,et al.  Structural Inertia and Organizational Change , 1984 .

[25]  H. Agndal,et al.  Different Open Book Accounting Practices for Different Purchasing Strategies , 2010 .

[26]  Eric G. Flamholtz.  Accounting, budgeting and control systems in their organizational context: Theoretical and empirical perspectives , 1983 .

[27]  J. Mouritsen,et al.  The 2nd wave of knowledge management: The management control of knowledge resources through intellectual capital information , 2005 .

[28]  El-Sayed Abou-Zeid,et al.  THE EFFECTIVENESS OF INNOVATION: A KNOWLEDGE MANAGEMENT APPROACH , 2004 .

[29]  Ulf Nilsson,et al.  The Impact of Competition and Uncertainty on the Adoption of Target Costing , 2008 .

[30]  Jon-Arild Johannessen,et al.  Organisational innovation as part of knowledge management , 2008, Int. J. Inf. Manag..

[31]  Eric H. Kessler,et al.  A reexamination of product and process innovations using a knowledge-based view , 1999 .

[32]  R. Ruggles.  The State of the Notion: Knowledge Management in Practice , 1998 .

[33]  Andy Cosh,et al.  Effects of Product Innovation and Organisational Capabilities on Competitive Advantage: Evidence from UK Small and Medium Manufacturing Enterprises , 2008 .