The Mediating Effect of Dynamic Marketing Capabilities on the Relationship Between Customer Knowledge Management and Organizational Innovation

Abstract

Today’s competitive business environment has made organizational innovation (OI) a central strategy for most firms. Not only does OI lead to obtaining new customers and market segments but it also enables firms to develop a reputation for being innovative. To ensure a sustained level of OI, firms need to enhance their customer knowledge management (CKM) as well as their dynamic marketing capabilities (DMCs). This study focuses on investigating the mediating effect of DMCs on the relationship between CKM and OI. To this end, a set of hypotheses were developed to analyse these relationships employing structural equation modelling. The data were collected from a total of 242 top management of firms in the pharmaceutical and healthcare industries in Jordan. The findings showed that knowledge for customer and knowledge about customer had strong and positive effects on the OI levels of the firms considered in this study. It was also revealed that knowledge from customer has no significant effect on OI. Moreover, the results indicated that DMCs have a mediating effect on the relationship between CKM and OI.