Knowledge Management Tools, Inter-Organizational Relationships, Innovation and Firm Performance

Abstract

The business value of information technology is an enduring research question. This research provides new insights to better understand the mechanisms supporting this relation by analyzing the impact of knowledge management tools (KMTs) on the performances of business units involved in inter-firm collaborative innovation projects. We extend current literature by developing and empirically testing a model where: (1) the use of KMTs is affected by critical organizational variables, (2) KMTs can impact the innovation and financial performances of business units. We find that mutual trust and culture for change do not affect the extent of the use of KMTs, while collaborative experience and naturalness in using ICTs as substitutive of face-to-face contacts have a significant impact. Moreover, we show that a more intense use of KMTs has a direct positive effect on new product performance and speed to market, as well as on financial performance. Yet, only new product performance acts as an indirect conduit linking KMT use and financial performances. This article provides a discussion and perspectives of further research concerning the impact of KMTs on innovation practices in inter-firm collaborative environments.