Passive but defiant: the role of innovative capabilities in knowledge management and corporate entrepreneurship

Abstract

Purpose This paper aims to examine the role of organizational innovative capabilities (OIC) on the relationship between knowledge sharing (KS), corporate entrepreneurship (CE) and firm performance (FP). Specifically, this study uses the knowledge-based view to develop a model that examines the mentioned relationship. Design/methodology/approach Using survey data from 520 participants across 75 service sector companies in Thailand, measurement and structure models are tested through structural equation modeling to quantify the impact between constructs. Findings This study shows that KS and CE positively affect OIC and FP. A positive relationship is also found between KS and CE. The mediating impact of OIC strengthens the relationship between KS and CE on FP. Research limitations/implications Like all research using survey methods, the research is prone to respondent biases and generalizability. However, this paper has put the best effort to minimize such effects by rigorous methodological testing to avoid such biases. Practical implications The findings of this study suggest that to improve organizational learning and knowledge-based performance, commitment and understanding of the employees in the entire organization is crucial. KS significantly contributes to developing innovative abilities because of its characteristics of providing firm-specific and socially complex advantages. The way a firm transforms and exploits its knowledge may ascertain its level of innovativeness, such as coming up with certain problem-solving procedures and new product development according to the rapid change in the market demand. However, organizations may only instigate to effectively organize knowledge when their employees are ready to share knowledge. Continuous KS boosts entrepreneurial practices and contributes innovativeness across individuals, groups, units or the entire organization. Originality/value The relationship between CE, organization innovative capabilities and FP in the presence of KS is rarely discussed in both theoretical and empirical literature. This study contributes to the literature by arguing that apart from the direct impact of KS on FP, KS can lead the firms toward generating important competitive advantage by forming innovative capabilities that can significantly influence FP.

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“…, 2012). According to the natural resource-based view (NRBV) of the firm (Hart, 1995), environmental investments facilitate the development of competitive advantage, and such competitive advantages, according to stakeholder theory can translate into improved financial performance if effective relationship management with key stakeholders is in place (Khalil et al ., 2021).…”

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“…The significance of loadings and path coefficients was investigated via bootstrapping. "Bootstrapping is a nonparametric method in which subsamples are generated with randomly derived observations from the original sample" (Khalil et al, 2021). For the student survey also the measurement model was examined for reliability and validity and then the analysis was conducted using simple statistics since only one section of a larger survey is being considered here.…”

Nexus between entrepreneurial orientation and intellectual capital

“…Various authors have drawn attention to the organizational mechanisms that allow entrepreneurial firms to access and apply knowledge, including trust (De Clercq et al ., 2013), human resource practices (Mustafa et al ., 2013), networks (Turner and Pennington, 2015), transactive memory system (Batra et al ., 2021), role of top management (Martín-Rojas et al ., 2013) and individual-level mechanisms such as motivation and psychological ownership (Pittino et al ., 2018). Our review revealed that entrepreneurial orientation affects how knowledge is created and shared in an organization (for example, Latif et al ., 2021; Keh et al ., 2007; Khalil et al. , 2022).…”