Role of Knowledge Infrastructure Capabilities in Product/Service Innovation

Abstract

This research explores the direct and indirect effects of knowledge infrastructure capabilities in creating product/service innovation in small entrepreneurial companies in Jordan. The mediating effects of knowledge-based dynamic capabilities and moderating role of innovation culture and emotional intelligence are also investigated. To this end, questionnaire surveys were developed and administered to employees and managers of 29 small entrepreneurial companies, resulting in 202 respondents. Validation and reliability analyses were performed followed by structural equation modelling for hypotheses testing. The results demonstrated the positive direct effect of knowledge infrastructure capabilities on creating product/service innovation. The indirect effect was confirmed as knowledge-based dynamic capabilities partially mediated the link between knowledge infrastructure capabilities and product/service innovation, and this relationship was moderated by innovation culture and emotional intelligence. This research highlights that the innovation culture and emotional intelligence encourage and sustain employee actions. This moderating influence can help better understand the complex nature of product/service innovation. Moreover, the variables used in this study have been thoroughly examined in developed countries, application of this model is deemed appropriate in developing countries such as Jordan to provide empirical evidence from a non-Western perspective.