The effect of organizational learning and knowledge management innovation on SMEs’ technological capability

Zhen-Gang Zhang,Chuan-Peng Yu,He Shen

doi:10.12973/eurasia.2017.00842a

Abstract

Organizational learning and knowledge management innovation are context- specific and they can influence SME’s technological capability effectively. We defined knowledge management innovation as a two-stage process: adoption and implementation of a managerial practice, process, or tool that is new to the firms and is intended to enhance the firms’ knowledge management efficiency. Then we constructed a conceptual model to discuss the relationship among organizational learning, knowledge management innovation and technological capability. We proposed that the effects of organizational learning were not only curvilinear but also differential across knowledge management innovation adoption and implementation process. The findings supported the hypotheses that (1) exploitative learning and exploratory learning had increasingly positive effects on knowledge management innovation; (2) knowledge management innovation had an inverted U relationship with technological capability; and (3) when exploitative learning was high, more knowledge management innovations were associated with better technological capability, but explorative innovation had insignificant moderating effects in knowledge management innovation implementation process.

Highlights

Small and medium-sized enterprises (SMEs) play an important role in the market economy and are one of the primary driving forces for economic development
Knowledge management innovation implementation should be effect-oriented that the innovative solutions should be modified through exploitative learning when the implementation did not appear the expected deviation in order to avoid too much variant knowledge being created
Knowledge management innovation implementation generally depends on the comprehension and participation of several departments that variance would result in more uncertainties

Summary

Introduction

Small and medium-sized enterprises (SMEs) play an important role in the market economy and are one of the primary driving forces for economic development. With the rapid technological evolution, turbulent complex market, increasingly sophisticated competitors, and economy globalization, SMEs face a challenging external business environment increasingly (De Clercq et al, 2015; Brettel et al, 2013). Innovation is the key for the enterprises to achieve sustainable competitive advantage and has become the common focus of academia and business career (Martinez-Conesa et al, 2017; Mukherjee et al, 2016; Tsai & Lei 2016; Zhou & Li, 2012). Firms in innovative industries invest heavily in the building of technological capabilities which offer the abilities and skills to utilize and deploy various resources and know-how (Sears & Hoetker, 2014; Zhou & Wu, 2010).

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Conclusion