The effects of cross-functional cooperation and competition on new product performance : how does knowledge management processes matter?

Abstract

According to the knowledge-based view (KBV) theory, firms are repositories of knowledge and competencies, and the “organizational advantage” of firms over markets arises from their superior capability in creating and transferring knowledge. Effective knowledge management (KM) has been presented in the literature as one method to improve innovation and performance. Despite the potential contributions to organization literature, however, the organizational view of KM processes is presently underutilized and has actually received disproportionately less empirical scrutiny. In light of this, the current thesis seeks to investigate the following four research questions: (1) Does cross-functional cooperation/competition have any effect on new product performance (new product financial performance and new product development speed) and KM processes? (2) Do KM processes (knowledge acquisition, knowledge dissemination, knowledge interpretation, and knowledge application) impact new product performance? (3) Do KM processes mediate the impact of cross-functional cooperation and competition on new product performance? (4) Does the interaction among different organizational culture dimensions (flexibility orientation and external focus), cross-functional cooperation, and competition influence KM processes? Analyzing survey data from 139 firms in China, the tentative results suggest that cross-functional cooperation has a positive effect on KM processes (knowledge acquisition, knowledge dissemination, knowledge interpretation, and knowledge application). Second, KM processes (knowledge acquisition, knowledge application) have a positive impact on new product performance. Third, cross-functional cooperation has a positive effect on new product performance. Fourth, KM processes mediate the impact of cross-functional cooperation on new product performance. Fifth, the relationship between cross-functional cooperation and knowledge acquisition/dissemination is moderated positively by a flexibility orientation culture (development or clan culture), and the relationship between cross-functional cooperation and knowledge application is moderated negatively by a flexibility orientation culture (development or clan culture). Finally, the relationship between cross-functional competition and knowledge acquisition is moderated positively by an external orientation culture (development or market culture), and the relationship between cross-functional competition and interpretation is moderated negatively by an external orientation culture (development or market culture).