Influence of knowledge management on product innovation by intrapreneurial firms

Abstract

Purpose This paper aims to provide a study on knowledge management, facilitating new product innovation by intrapreneurial companies. Design/methodology/approach The methodology includes the empirical study which was conducted based on detailed questionnaire and data collection of 319 respondents from heavy engineering auto companies, such as Maruti, Honda and others. The data were analyzed to find the influence of knowledge management on new product development. Structural equation modeling method, critical path analysis and reliability were checked by Cronbach’s alpha. Findings The findings suggest that the innovation of a new product is critical for the companies. Also, it is very important for the companies to have knowledge management systems such as intelligence generation and dissemination process to facilitate information sharing among the various departments. Responsiveness to the market needs would be based on how authentic the customer data are and to what extent the company is able to share these data with research and product development departments to motivate new products for fulfilling these needs of the customers. This kind of process would enable the company to drive the next level of innovation within the company. Research limitations/implications The present study has several implications for managers and researchers. The model proposed in the study suggests the adoption and implementation of knowledge management for product innovation. The study findings also suggest that developing better methods to share knowledge and intelligence among the employees about the customers’ data would be a very critical success factor for new product innovation. Practical implications This paper also suggests that the researchers can study this model with respect to inter-disciplinary and inter-country study to become competitive using new product innovation. Originality/value The study contributes toward development of theory on creating innovation facilitated by knowledge management for enhancing innovation.