The impact of customer knowledge and marketing dynamic capability on innovation performance: an empirical analysis

Abstract

Purpose This paper aims to explore the intermediary role of marketing dynamic capability (MDC) in the relationship between customer knowledge management (CKM) and product innovation performance (PIP). Design/methodology A conceptual model is proposed and a survey instrument is developed. The model is tested empirically in an organizational buyer/seller setting using a survey among middle and top management of firms engaged in business-to-business relationships within high-tech industries in China. Findings Results show that MDC fully mediates the relationship between CKM and PIP. Empirical findings thus demonstrate that CKM is related to improved firm PIP through the deployment of firm-specific MDCs. Research implications/limitations The study provides clarification for a unique distinction between organizational learning and dynamic capabilities. Findings suggest that knowledge creation occurs within the scope of CKM, while the analytical and perceptual processes that lead to insights and redeployment of firm resources fall under the umbrella of MDCs. Practical implications Dynamic capabilities play an essential role in transforming the firm’s knowledge resources to create new configurations in response to market needs. Hence, this study reinforces the role of marketing decision-makers with appropriate decision-making power who, in an ongoing cooperation with other functional areas, are able to adapt and redeploy resources to reflect environmental changes and implement marketing strategy decisions. Originality/value This study contributes to the literature by addressing simultaneously the relationship between CKM, MDC and PIP. Specifically, the study demonstrates the mediating influence of MDCs on the relationship between CKM and firm PIP. The study also clarifies a key distinction between organizational learning and dynamic capabilities, demonstrating that knowledge serves an antecedent role to the deployment of dynamic capabilities.

An Integrative Model of Market Orientation on Innovation Performance

“…The ability to focus on customers is the key to improving new product performance (O'Cass & Heirati, 2015). Furthermore, knowledge management refers to the ability to create and integrate knowledge resources about customers to increase customer value (Falasca et. al., 2017).…”

“…al., 2015). High KM tends to improve innovation performance (Griese, Pick, & Kleinaltenkamp, 2012;Falasca et. al., 2017).…”

“…Marketing literature has often discussed the concept of knowledge management capabilities (Eslami & Lakemond, 2016;Lichtenthaler, 2016). Knowledge management refers to the company's strategic ability to manage information and knowledge about its customer desires (Falasca et. al., 2017).…”

“…al., 2016). Recent marketing research has found that customer knowledge management influences business performance through dynamic marketing capabilities (Falasca et. al., 2017).…”

Multi-dimensional Influence of Dynamic Capabilities on Innovation Performance in Knowledge-intensive Service Enterprises

“…On one hand, previous studies deemed that building dynamic capabilities can help enterprises to cope with the changes in the innovative environment and reduce the uncertainty of innovation, yet neglected to measure how various dimensions of the dynamic capabilities affect various dimensions of the innovation performance at an empirical level. Literature review showed that although Falasca et al (2017) have examined the relationship between marketing dynamic capability and innovation performance in their empirical study of how customer knowledge influences the innovation performance of enterprises, "dynamic capabilities" was regarded as a one-dimensional concept in the research process which did not reveal the various dimensions within dynamic capabilities and how each dimension influences the mechanism of innovation performance [5].…”