The Impact of Knowledge Sharing on the Relationship Between Market Orientation and Service Innovation

Abstract

Few studies have been conducted on how each element of market orientation contributes to service innovation through different types of knowledge sharing. Drawing on the dynamic capability perceptive and synergy approach, this study examines the effects of knowledge donation and knowledge collection on service innovation and the effects of customer orientation, competitor orientation, and inter-functional cooperation on service innovation through knowledge donation and knowledge collection. This study collected a total of 258 valid questionnaires randomly from different Malaysian motorcycles companies. The empirical (PLS-SEM) findings indicate that customer orientation, competitor orientation, and inter-functional coordination are positively related to service innovation. The findings show that knowledge donation and knowledge collection are significantly related to service innovation. Interestingly, the effects of customer orientation, competitor orientation, and inter-functional coordination on service innovation are fully mediated by knowledge donation and knowledge collection, respectively.