Improving customer knowledge transfer in industrial firms: how does previous work experience influence the effect of reward systems?

Purpose – This paper aims to improve customer knowledge management practices in industrial firms by examining the role of knowledge integration mechanisms (KIMs) and customer-oriented reward systems in non-marketing managers’ use of customer information. Design/methodology/approach – Cross-sectional survey data were collected from 221 R & D and manufacturing managers from large, Finnish industrial companies. Ordinary least squares regression with bootstrap procedures was used to test the hypotheses. Findings – The use of KIMs mediates the positive effect of customer-oriented reward systems on non-marketing managers’ use of customer information. However, non-marketing managers’ previous work experience in sales and marketing negatively moderates the effect of customer-oriented reward systems on the use of customer information. The use of knowledge integration systems mediates this moderation effect. Research limitations/implications – This paper provides empirical evidence concerning the antecedents of suc...

[1]  Bodo B. Schlegelmilch,et al.  Knowledge transfer between marketing functions in multinational companies: a conceptual model , 2003 .

[2]  Alexandra J. Campbell Creating customer knowledge competence: managing customer relationship management programs strategically , 2003 .

[3]  C. Davy,et al.  Recipients: the key to information transfer , 2006 .

[4]  Bernard J. Jaworski,et al.  Market orientation: Antecedents and consequences , 1993 .

[5]  Jeffrey Cummings,et al.  Transferring R&D Knowledge : the Key Factors Affecting Knowledge Transfer Success , 2003 .

[6]  Martin Spraggon,et al.  A multidimensional taxonomy of intra-firm knowledge transfer processes , 2012 .

[7]  Heiko Gebauer,et al.  Customer-focused and service-focused orientation in organizational structures , 2012 .

[8]  Adam J. Wowak,et al.  A model of person‐pay interaction: how executives vary in their responses to compensation arrangements , 2010 .

[9]  Bernard J. Jaworski,et al.  Enhancing Communication between Marketing and Engineering: The Moderating Role of Relative Functional Identification , 1997 .

[10]  dt ogilvie,et al.  Things are not always what they seem , 2006 .

[11]  Christian Lüthje,et al.  Whom Should Firms Attract to Open Innovation Platforms? The Role of Knowledge Diversity and Motivation , 2011 .

[12]  Philip H. Birnbaum-More,et al.  The Effect of Multiknowledge Individuals on Performance in Cross‐Functional New Product Development Teams* , 2009 .

[13]  B. Frey,et al.  Motivation, Knowledge Transfer, and Organizational Forms , 2000 .

[14]  Amrit Tiwana,et al.  Knowledge integration in virtual teams: The potential role of KMS , 2002, J. Assoc. Inf. Sci. Technol..

[15]  Torben Pedersen,et al.  Knowledge-sharing hostility and governance mechanisms: An empirical test , 2012, J. Knowl. Manag..

[16]  R. Rust,et al.  The Path to Customer Centricity , 2006 .

[17]  A. Diamantopoulos,et al.  Measuring Export Information Use: Scale Development and Validation , 1999 .

[18]  Silja Korhonen-Sande,et al.  Micro-foundations of market orientation: Influencing non-marketing managers' customer information processing , 2010 .

[19]  Hanna Salojärvi,et al.  The effect of teams on customer knowledge processing, esprit de corps and account performance in international key account management , 2013 .

[20]  Richard L. Daft,et al.  Organizational information requirements, media richness and structural design , 1986 .

[21]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[22]  M. Gilbert,et al.  Understanding the process of knowledge transfer to achieve successful technological innovation , 1996 .

[23]  L. Rabbiosi,et al.  Linking HRM and knowledge transfer via individual‐level mechanisms , 2012 .

[24]  Henk W. Volberda,et al.  Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms , 2008, Organ. Sci..

[25]  Jukka Ojasalo,et al.  What prevents effective utilisation of customer knowledge in professional B-to-B services? An empirical study , 2008 .

[26]  Fabrizio Salvador,et al.  Information flows for high performance manufacturing , 2001 .

[27]  Paula van Veen-Dirks Different uses of performance measures: The evaluation versus reward of production managers , 2010 .

[28]  I. Ajzen The theory of planned behavior , 1991 .

[29]  A. Rodríguez-Escudero,et al.  Antecedents and consequences of using information from customers involved in new service development , 2014 .

[30]  Antonio Dávila Short-term economic incentives in new product development , 2003 .

[31]  K. Atuahene–Gima,et al.  Market Knowledge Dimensions and Cross-Functional Collaboration: Examining the Different Routes to Product Innovation Performance , 2007 .

[32]  A. Hayes Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach , 2013 .

[33]  Donald Hislop,et al.  Knowledge integration processes and the appropriation of innovations , 2003 .

[34]  J. Hauser,et al.  Integrating R&D and marketing: A review and analysis of the literature , 1996 .

[35]  Jasmine Williams,et al.  Export information use in small and medium‐sized industrial companies , 2003 .

[36]  Liisa-Maija Sainio,et al.  Organizational factors enhancing customer knowledge utilization in the management of key account relationships , 2010 .

[37]  Ulf R. Andersson,et al.  Interpersonal similarity and knowledge sharing within multinational organizations , 2012 .

[38]  R. Bagozzi,et al.  On the evaluation of structural equation models , 1988 .

[39]  Lianying Zhang,et al.  The Effects of Incentive Mechanism on Knowledge Management Performance in China: The Moderating Role of Knowledge Attributes , 2014 .

[40]  Hsiu-Fen Lin,et al.  Effects of extrinsic and intrinsic motivation on employee knowledge sharing intentions , 2007, J. Inf. Sci..

[41]  Kaisu Puumalainen,et al.  How customer knowledge dissemination links to KAM , 2013 .

[42]  M. Christopher,et al.  Demand chain management-integrating marketing and supply chain management , 2007 .

[43]  C. Moorman Organizational Market Information Processes: Cultural Antecedents and New Product Outcomes , 1995 .

[44]  N. Foss,et al.  Governing Knowledge Sharing in Organizations: Levels of Analysis, Governance Mechanisms, and Research Directions , 2010 .

[45]  R. Grant Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal (17), pp. , 1996 .

[46]  Ajay K. Kohli,et al.  Reducing marketing’s conflict with other functions: The differential effects of integrating mechanisms , 2000 .

[47]  W. Johnston,et al.  Customer information utilization in business-to-business markets: Muddling through process? , 2012 .

[48]  Justin J. P. Jansen,et al.  Managing Potential and Realized Absorptive Capacity: How Do Organizational Antecedents Matter? , 2005 .

[49]  Rogelio Oliva,et al.  Cross-functional alignment in supply chain planning: A case study of sales and operations planning , 2011 .

[50]  Tsun-jin Chang,et al.  The effects of joint reward system in new product development , 2007 .

[51]  Vittorio Chiesa,et al.  Performance Measurement in R&D: Exploring the Interplay between Measurement Objectives, Dimensions of Performance and Contextual Factors , 2009 .

[52]  B. Frey,et al.  Motivation crowding theory , 2001 .

[53]  Jae-Hyeon Ahn,et al.  Reward systems for intra-organizational knowledge sharing , 2007, Eur. J. Oper. Res..

[54]  Young Chan Kim,et al.  Salespeople’s Knowledge-Sharing Behaviors with Coworkers Outside the Sales Unit , 2011 .

[55]  Tom J. Brown,et al.  The Customer Orientation of Service Workers: Personality Trait Effects on Self-and Supervisor Performance Ratings , 2002 .

[56]  G. Zaltman,et al.  Relationships between Providers and Users of Market Research: The Dynamics of Trust within and between Organizations , 1992 .

[57]  Subhash Sharma,et al.  The Role of Relational Information Processes and Technology Use in Customer Relationship Management , 2005 .

[58]  Kristopher J Preacher,et al.  SPSS and SAS procedures for estimating indirect effects in simple mediation models , 2004, Behavior research methods, instruments, & computers : a journal of the Psychonomic Society, Inc.

[59]  S. Parker,et al.  Enhancing role breadth self-efficacy: the roles of job enrichment and other organizational interventions. , 1998, The Journal of applied psychology.

[60]  Minna Rollins,et al.  Does customer information usage improve a firm's performance in business-to-business markets? , 2012 .

[61]  G. Day The Capabilities of Market-Driven Organizations , 1994 .

[62]  Roger Bennett,et al.  Managing conflict between marketing and other functions within charitable organisations , 2004 .

[63]  Dorothy E. Leidner,et al.  Review: Knowledge Management and Knowledge Management Systems: Conceptual Foundations and Research Issues , 2001, MIS Q..

[64]  N. Piercy,et al.  The impact of aligned rewards and senior manager attitudes on conflict and collaboration between sales and marketing , 2011 .

[65]  K. M. Bartol,et al.  Encouraging Knowledge Sharing: The Role of Organizational Reward Systems , 2002 .

[66]  Dana Minbaeva,et al.  HRM Practices Affecting Extrinsic and Intrinsic Motivation of Knowledge Receivers and Their Effect on Intra-MNC Knowledge Transfer , 2008 .

[67]  Dean R. Spitzer,et al.  Book Review: Transforming Performance Measurement: Rethinking the Way We Measure and Drive Organizational Success. , 2007 .

[68]  Jukka Ojasalo,et al.  Loose coupling as an inhibitor of internal customer knowledge transfer: findings from an empirical study in B‐to‐B professional services , 2008 .

[69]  D. Burgess,et al.  What Motivates Employees to Transfer Knowledge Outside Their Work Unit? , 2005 .

[70]  Vivienne Shaw,et al.  Conflict between Engineers and Marketers , 1998 .

[71]  R. Grover,et al.  From Embedded Knowledge to Embodied Knowledge: New Product Development as Knowledge Management , 1998 .

[72]  Ajay K. Kohli,et al.  Market Intelligence Dissemination across Functional Boundaries , 1996 .

[73]  Gabriel Szulanski Exploring internal stickiness: Impediments to the transfer of best practice within the firm , 1996 .

[74]  Keld Laursen,et al.  Linking Customer Interaction and Innovation: The Mediating Role of New Organizational Practices , 2011, Organ. Sci..

[75]  James M. Pappas,et al.  The moderating role of individual‐difference variables in compensation research , 2006 .

[76]  M García-Murillo,et al.  Customer knowledge management , 2002, J. Oper. Res. Soc..

[77]  Bård Kuvaas,et al.  Intrinsic and extrinsic motivation as predictors of work effort: the moderating role of achievement goals. , 2013, The British journal of social psychology.

[78]  Abdelfattah Triki,et al.  Customer Knowledge Enabled Innovation capability: Proposing a measurement scale , 2011, J. Knowl. Manag..

[79]  M. Roth,et al.  Subsidiary use of Foreign Marketing Knowledge , 2009 .

[80]  John T. Mentzer,et al.  Motivating the industrial sales force in the sales forecasting process , 2010 .

[81]  Linda Argote,et al.  Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes , 2003, Manag. Sci..

[82]  E. Hultink,et al.  Determinants of new product selling performance: an empirical examination in The Netherlands , 2000 .

[83]  Kristopher J Preacher,et al.  Addressing Moderated Mediation Hypotheses: Theory, Methods, and Prescriptions , 2007, Multivariate behavioral research.

[84]  Market-Oriented Behaviors within Organizations: An Individual-Level Perspective , 1999 .

[85]  Dawn S. Carlson,et al.  Work–Family Conflict in the Organization: Do Life Role Values make a Difference? , 2000 .

[86]  E. Maltz,et al.  Influencing R&D/marketing integration and the use of market information by R&D managers: intended and unintended effects of managerial actions , 2001 .