What Contributes to the Enhanced Use of Customer, Competition and Technology Knowledge for Product Innovation Performance? A Survey of Multinational Companies’ Subsidiaries Operating in China

This study extends an emerging research area in knowledge management to new product development by empirically examining the factors associated with the use of different types of knowledge flows from various sources and product innovation performance (i.e., market success of new products) in the multinational companies' subsidiaries in China. The findings seem to indicate the vitality of considering a broad spectrum of knowledge management related variables such as a subsidiary's product development strategy, market conditions it faces, its knowledge capacity and knowledge support structure. Furthermore, we found that subsidiaries with better performance are generally excel in the use of competition knowledge flow, the development of moderate innovative products, communication among different functional departments or product development groups, the codification of knowledge, and a supportive culture.

[1]  Noel P. Greis,et al.  Absorptive capacity and new product development , 2001 .

[2]  Robert G. Cooper,et al.  Identifying industrial new product success: Project NewProd , 1979 .

[3]  Detmar W. Straub,et al.  Validating Instruments in MIS Research , 1989, MIS Q..

[4]  B. Chakravarthy,et al.  The persistence of knowledge‐based advantage: an empirical test for product performance and technological knowledge , 2002 .

[5]  Gareth R. Jones,et al.  The role of information technology in the organization: a review, model, and assessment , 2001 .

[6]  Martin Schulz,et al.  Pathways of Relevance: Exploring Inflows of Knowledge into Subunits of Multinational Corporations , 2003, Organ. Sci..

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

[8]  K. Eisenhardt,et al.  PRODUCT DEVELOPMENT: PAST RESEARCH, PRESENT FINDINGS, AND FUTURE DIRECTIONS , 1995 .

[9]  I. Nonaka,et al.  Organizational Capabilities in Product Development of Japanese Firms: a Conceptual Framework and Empirical Findings , 1998 .

[10]  R. Cooper,et al.  Benchmarking the Firm's Critical Success Factors in New Product Development , 1995 .

[11]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[12]  David M. Brock,et al.  Multinational Corporate Evolution and Subsidiary Development , 1998 .

[13]  Roger Calantone,et al.  An Integrative Model of the New Product Development Process: An Empirical Validation , 1988 .

[14]  R. Cooper New product success in industrial firms , 1982 .

[15]  Marjorie A. Lyles,et al.  The Blackwell handbook of organizational learning and knowledge management , 2003 .

[16]  Hans Baumgartner,et al.  Response Styles in Marketing Research: A Cross-National Investigation , 2001 .

[17]  BoschFrans A. J. Van Den,et al.  Coevolution of Firm Absorptive Capacity and Knowledge Environment , 1999 .

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

[19]  Mcdp Mathieu Weggeman,et al.  Determinants of the Level of Knowledge Application: A Knowledge‐Based and Information‐Processing Perspective* , 2005 .

[20]  Anil K. Gupta,et al.  Knowledge Flows and the Structure of Control Within Multinational Corporations , 1991 .

[21]  R. Mudambi Knowledge management in multinational firms , 2002 .

[22]  Robert G. Cooper,et al.  The Dimensions of Industrial New Product Success and Failure , 1979 .

[23]  Bernard L. Simonin An Empirical Investigation of the Process of Knowledge Transfer in International Strategic Alliances , 2004 .

[24]  James E. Burroughs,et al.  Do Reverse-Worded Items Confound Measures in Cross-Cultural Consumer Research? The Case of the Material Values Scale , 2003 .

[25]  M. Parry,et al.  Identifying New Product Successes in China , 1994 .

[26]  Mike W. Peng,et al.  Learning to Compete in a Transition Economy: Experience, Environment, and Performance , 1999 .

[27]  David M. Szymanski,et al.  Why Some New Products are More Successful than Others , 2001 .

[28]  R. Calantone,et al.  The Impact of Market Knowledge Competence on New Product Advantage: Conceptualization and Empirical Examination , 1998 .

[29]  D. Dougherty,et al.  Sustained product innovation in large, mature organizations: Overcoming innovation-to-organization problems. , 1996 .

[30]  Mariano Corso,et al.  Knowledge management in product innovation: an interpretative review , 2001 .

[31]  A. Rugman,et al.  Subsidiary‐specific advantages in multinational enterprises , 2001 .

[32]  Pattarawan Prasarnphanich,et al.  Understanding the Antecedents of Effective Knowledge Management: The Importance of a Knowledge-Centered Culture , 2003, Decis. Sci..

[33]  Sanjay Mishra,et al.  Factors affecting new product success: Cross-country comparisons☆ , 1996 .

[34]  K. Clark,et al.  Creating project plans to focus product development. , 1992, Harvard business review.

[35]  A. Griffin PDMA Research on New Product Development Practices: Updating Trends and Benchmarking Best Practices , 1997 .

[36]  Young-Won Ha,et al.  Determinants of Korean and Japanese New Product Performance: An Interrelational and Process View , 2003 .

[37]  R. Grant,et al.  Environments: Organizational Capability as Knowledge Integration , 2022 .

[38]  Gianmario Verona A Resource-Based View of Product Development , 1999 .

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

[40]  H. Ernst Success Factors of New Product Development: A Review of the Empirical Literature , 2002 .

[41]  Wheelwright Sc,et al.  The new product development map. , 1989 .

[42]  I. Nonaka A Dynamic Theory of Organizational Knowledge Creation , 1994 .

[43]  R. Calantone,et al.  Determinants of New Product Performance: A Review and Meta-Analysis , 1994 .

[44]  R. Cooper,et al.  New Products: What Separates Winners from Losers? , 1987 .

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

[46]  H. Gatignon,et al.  Strategic Orientation of the Firm and New Product Performance , 1997 .

[47]  B. Kogut,et al.  Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology , 1992 .

[48]  Heeseok Lee,et al.  Knowledge Management Enablers, Processes, and Organizational Performance: An Integrative View and Empirical Examination , 2003, J. Manag. Inf. Syst..

[49]  R. Sohi,et al.  IT competency and firm performance: is organizational learning a missing link? , 2003 .

[50]  Mark S. Demarest Understanding knowledge management , 1997 .

[51]  S. Zahra,et al.  Absorptive Capacity: A Review, Reconceptualization, and Extension , 2002 .

[52]  Steven Postrel,et al.  Shared knowledge, “glitches,” and product development performance , 1999 .

[53]  Masaaki Kotabe,et al.  Strategic alliance-based sourcing and market performance: evidence from foreign firms operating in China , 2005 .

[54]  Henk W. Volberda,et al.  Co-evolution of Firm Absorptive Capacity and Knowledge Environment: Organizational Forms and Combinative Capabilities , 1999 .

[55]  Tony C. Garrett,et al.  Success through customer-driven new product development: A comparison of U.S. and New Zealand small entrepreneurial high technology firms , 1997 .

[56]  Paul Almeida,et al.  Are Firms Superior to Alliances and Markets? An Empirical Test of Cross-Border Knowledge Building , 2002, Organ. Sci..

[57]  F. Damanpour Organizational Innovation: A Meta-Analysis Of Effects Of Determinants and Moderators , 1991 .

[58]  Timothy N. Carroll,et al.  The Coevolution of New Organizational Forms , 1999 .

[59]  M. Schulz THE UNCERTAIN RELEVANCE OF NEWNESS: ORGANIZATIONAL LEARNING AND KNOWLEDGE FLOWS , 2001 .

[60]  Matthew H. Roy,et al.  The allocation of R&D funds between product development and process improvements: a follow-up study , 1996 .

[61]  Gregory N. Stock,et al.  Building Dynamic Capabilities in New Product Development through Intertemporal Integration , 2003 .

[62]  David L. Deeds,et al.  The impact of stocks and flows of organizational knowledge on firm performance: an empirical investigation of the biotechnology industry , 1999 .

[63]  Daniel A. Levinthal,et al.  ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION , 1990 .

[64]  K. Atuahene–Gima,et al.  An Empirical Investigation of the Effect of Market Orientation and Entrepreneurship Orientation Alignment on Product Innovation , 2001 .

[65]  Anil K. Gupta,et al.  Knowledge flows within multinational corporations , 2000 .

[66]  M. Gordon,et al.  PUBLICATION RECORDS AND TENURE DECISIONS IN THE FIELD OF STRATEGIC MANAGEMENT , 1996 .