The impact of knowledge management capabilities on new product development and company performance (an application of structural equation modeling - sem)

Managing knowledge is a critical challenge for organizations while it is a major potential for gaining competitive advantage. Managers want to understand how to manage and measure their knowledge based assets better. This empirical study confirms and improves a framework which proposes a link between knowledge management enablers (KME) and knowledge creation process (KCP). The present model introduces improvements on the process-oriented perspective of knowledge by using the knowledge creation model and a framework reported in the literature by adding business strategies (BS) and market dynamism (MD) to the model. As an inter-mediator, new product development (NPD) is accepted.Ten enablers are used in the study: collaboration, trust, learning, participating in boundary spanning structures, direction and performance information, centralization, formalization, t-shaped skills, IT support, and IT quality. KCP has four factors of socialization, externalization, combination, and internalization. KME and KCP found to have an impact on perceived company performance (PCP) through new product development capabilities (NPDC).The questionnaire is applied to IT sector in Turkey and 294 responses from 93 different companies are collected. Then data is evaluated in SPSS and AMOS for structural equation modeling. The findings confirmed the proposed relationships. SEM analysis enabled to observe new relationships that are non-linear, like Business Strategies have impact on KME, socialization, NPDC and financial performance. Learning and IT have impact on all four factors of KCP. Mutual trust has relationships with NPDC and qualitative performance in addition to socialization and externalization. Formalization has a negative impact on externalization.This research provides a SEM model that both the confirmed and the simplified model can be referred by academicians. Concerning the limited resources for any company, the proposed model enables managers a tool that can be used for seeking sound strategies to manage which enablers and knowledge creation modes they should focus on.