How Knowledge Integration Mechanisms Affect Product Innovation in the NPD Process?

Teresa Tiaojung Hsu, Kuen-Hung Tsai and Yi-Chuan Liao
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Teresa Tiaojung Hsu: Cheng Shiu University, Taiwan
Kuen-Hung Tsai: National Taipei University, Taiwan
Yi-Chuan Liao: National Taipei University, Taiwan

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Abstract: Purpose: This study tries to examine how a company utilizes knowledge integration mechanisms (KIMs) to achieve the success of product innovation in a new product development (NPD) process. Research questions: (1) How KIMs affect new product performance in the NPD process? (2) Is the effect of KIMs on performance different for developing products with different level of product advantage? Design: This study forms a mediation model to examine that knowledge integration capability (KIC) mediates the effect of KIMs on new product performance, and then forms a moderated mediation model to examine the moderating effect of product advantage on this mediating relationship. Methodology: The hierarchical regression is used to examine 128 Taiwan’s manufacturing firms. This study follows Baron and Kenny’s (1986) procedure to examine the mediation effect, and follows Muller, Judd, and Yzerbyt’s (2005) steps to examine the moderated mediation effect. Findings: KIC positively and completely mediates the effect of KIMs on new product performance. The mediating effect of KIC is strong when the level of product advantage is low. Research limitations: This study only examines the relationship with a cross-sectional data. The generalizability of the findings is limited. This study merely examines product advantage as a moderator in the relationship. Research implications: The use of KIMs is not a sufficient condition for product innovation but the integration capability is the key driver of product innovation. For developing product with less product advantage, the mediating effect of knowledge integration capability is stronger. Practical implications: Although KIC converts the effect of KIMs on new product performance, but its effect varies as a function of product advantage. The view implies that by failing to consider the KIC’s moderated-mediating role, managers may have reached an overly optimistic view on the effect of KIMs on product innovation.

Keywords: knowledge integration mechanisms; knowledge integration capability; product advantage; new product performance (search for similar items in EconPapers)
Date: 2013
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