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Knowledge Creation Process and Sustainable Competitive Advantage: the Role of Technological Innovation Capabilities

Author

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  • Chuanpeng Yu

    (School of Economics and Commerce, South China University of Technology, Guangzhou 510006, China)

  • Zhengang Zhang

    (School of Business Administration, South China University of Technology, Guangzhou 510641, China)

  • Chunpei Lin

    (Business Management Research Center, School of Business Administration, Huaqiao University, Quanzhou 362021, China)

  • Yenchun Jim Wu

    (Graduate Institute of Global Business and Strategy, National Taiwan Normal University, Taipei 10645, Taiwan
    College of Innovation and Entrepreneurship, National Taipei University of Education, Taipei 10671, Taiwan)

Abstract

This study examines the relationship between the knowledge creation process and technological innovation capabilities, and analyzes their effect on a firm’s sustainable competitive advantage using a knowledge-based view theoretical framework. We conduct structural equation modeling analyses using survey data from 315 Chinese industrial firms to test the direct and indirect effects of the knowledge creation process on sustainable competitive advantage. Technological innovation capabilities—operationalized to reflect the dimensions of process innovation capability and product innovation capability—are used as the mediating variable for explaining the relationship between the knowledge creation process and sustainable competitive advantage. The results indicate that the knowledge creation process does not have a significant direct effect on sustainable competitive advantage. Rather, the knowledge creation process can only influence the sustainable competitive advantage through the mediating effect of technological innovation capabilities completely. Consequently, the knowledge creation process favors the development of technological innovation capabilities for processes and products, because processes and products can lead to a sustainable competitive advantage.

Suggested Citation

  • Chuanpeng Yu & Zhengang Zhang & Chunpei Lin & Yenchun Jim Wu, 2017. "Knowledge Creation Process and Sustainable Competitive Advantage: the Role of Technological Innovation Capabilities," Sustainability, MDPI, vol. 9(12), pages 1-16, December.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2280-:d:122397
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