Knowledge Creation Process and Sustainable Competitive Advantage: the Role of Technological Innovation Capabilities

Chuanpeng Yu,Yenchun Wu,Chunpei Lin,Zhengang Zhang

doi:10.3390/su9122280

Abstract

This study examines the relationship between the knowledge creation process and technological innovation capabilities, and analyzes their effect on a firm’s sustainable competitive advantage using a knowledge-based view theoretical framework. We conduct structural equation modeling analyses using survey data from 315 Chinese industrial firms to test the direct and indirect effects of the knowledge creation process on sustainable competitive advantage. Technological innovation capabilities—operationalized to reflect the dimensions of process innovation capability and product innovation capability—are used as the mediating variable for explaining the relationship between the knowledge creation process and sustainable competitive advantage. The results indicate that the knowledge creation process does not have a significant direct effect on sustainable competitive advantage. Rather, the knowledge creation process can only influence the sustainable competitive advantage through the mediating effect of technological innovation capabilities completely. Consequently, the knowledge creation process favors the development of technological innovation capabilities for processes and products, because processes and products can lead to a sustainable competitive advantage.

Highlights

The question of what constitutes a sustainable competitive advantage (SCA) is a primary topic in current business strategy management research, and the knowledge-based view (KBV) of the source of SCA has received substantial attention
Grant maintained that knowledge creation and utilization are essential to businesses; compared with their markets, businesses can create and expand knowledge more effectively to facilitate the application and protection of their intellectual property; business competitive advantage is based on the capability to establish a system for generating and protecting knowledge resources; and such a capability facilitates the integration of knowledge and other resources to yield economic rents that are larger than average profits [7]
This study discovered that technological innovation capability mediated the role of the knowledge creation process (KCP) in the development of SCA

Summary

Introduction

The question of what constitutes a sustainable competitive advantage (SCA) is a primary topic in current business strategy management research, and the knowledge-based view (KBV) of the source of SCA has received substantial attention. To achieve and maintain competitiveness and sustainable growth, companies must constantly absorb existing knowledge, create new knowledge, and pursue practical wisdom [2]. Penrose first formulated the KBV of business competitive advantage, suggesting that the interaction between productive services and knowledge creation underlies a company’s development [4]. Grant maintained that knowledge creation and utilization are essential to businesses; compared with their markets, businesses can create and expand knowledge more effectively to facilitate the application and protection of their intellectual property; business competitive advantage is based on the capability to establish a system for generating and protecting knowledge resources; and such a capability facilitates the integration of knowledge and other resources to yield economic rents that are larger than average profits [7]

Methods

Results

Conclusion