Knowledge resources and innovation performance: the mediation of innovation capability moderated by management commitment

Abstract

This paper examines the process that links knowledge resources to innovation performance. We propose that this relationship is mediated by innovation capability and that management commitment moderates this mediation effect. To measure innovation performance, we create an indicator that summarises the impact of innovation activities on products, processes and sustainability. The sample comprises 9432 firms in different sectors included in the Community Innovation Survey (CIS). The results confirm that knowledge resources not only have a direct positive effect on innovation performance but also an indirect effect by improving the firm's innovation capability. We also confirm the moderating role of management commitment, but with limitations. This research, therefore, throws light on how firms can leverage their knowledge resources to gain a competitive advantage based on innovation.

Keywords:

• technological knowledge
• innovation performance
• innovation capability
• management commitment
• moderated mediation

Acknowledgements

This work has received support from the Galician government's ‘Programme for the Consolidation and Structuring of Competitive Research Units’, and funding from the European Regional Development Fund and the Department for Innovation and Industry of the Galician government through the grant 10SEC300036PR.