Supplier‐Focused Knowledge Management in the Automobile Industry and Its Implications for Product Performance

Abstract

abstract This study focuses on the impact of knowledge management in supplier relations (termed as supplier‐focused knowledge management, SFKM) within the automobile industry of an emerging economy (Brazil), on financial and product performance. A model of the relationship between supplier‐focused knowledge management, including its associated processes, and performance is described and the associated hypotheses are developed and then tested. Knowledge sharing through face‐to‐face communication is positively related to both product and financial performance, while technological knowledge sharing has a positive impact on product performance under conditions of high technological dynamism. Supplier involvement in the production process is related to product performance and use of knowledge management tools is related to financial performance. The results support the major hypotheses of our SFKM model. These results are discussed in the context of the knowledge management and supplier‐relations literatures in terms of the contributions, implications for research and practice, and directions for future research.