Knowledge acquisition and product innovation flexibility in SMEs

Abstract

Purpose – The purpose of this paper is to examine the role that knowledge acquisition (KA) plays in creating product innovation flexibility (PIF) in SMEs. The paper also examines two of the factors of the KA process: relationship quality (RQ); and information capability (IC). Design/methodology/approach – The survey data were checked for common method variance, validity, and reliability. Structural equation modeling was used to test the hypothetical framework and path analysis was used to test mediation effects. Findings – Results show that for SMEs, KA mediates the effect of RQ on PIF, and that KA partially mediates the relationship between IC and PIF. Research limitations/implications – The study focusses on only one step in the knowledge management process – KA. Additional research into the role that IC plays on PIF is also called for. Additional empirical study is needed to identify contingency factors, both within and outside the firm. Practical implications – These findings provide important insights for SME supply chain managers to understand the roles that the quality of relationship with their suppliers and how information is managed across boundaries can impact their ability to achieve flexible production innovation. An effective external KA process facilitates transformation of high-quality supplier relationship and IC into innovation flexibility. Social implications – The study suggests that the concept of social capital should be emphasized in knowledge-based research on SMEs. Originality/value – This study fills a gap in supply chain management research on the role of KA on PIF by being one of the first to empirically examine this effect in SMEs.