Abstract

This paper examines the impact of knowledge management processes on innovation of firms in Hangzhou software cluster. The perspective of this study suggests that knowledge process architecture of knowledge acquisition, integration, exploitation and protection are essential capabilities for effective organisational innovation. Through analysis of surveys collected from 205 senior executives, this research empirically models and uncovers key aspects of these dimensions. The results show that knowledge management process is a second-order construct, it has significant impact on innovation performance. This implies that the knowledge spillover, integration, sharing and protection could improve innovation performance of the software cluster. This paper concludes with a discussion and limitations of the research.

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