Relationship between knowledge management and foreign tacit knowledge on multinational pharmaceutical product innovation
Keywords:
Foreign tacit knowledge, knowledge exchange, relationship harmony, ICT competence, multinational pharmaceutical firms, product innovationAbstract
Multinational companies face various challenges regarding knowledge transfer, relationship harmony and environmental challenges which can diverse the operational performance of companies with globalized disturbed customers. This research paper applies a model with aims to find the impact of foreign tacit knowledge (FTK) on the product innovation of multinational pharmaceutical firms in Thailand. The model of this research also consists of knowledge exchange, ICT competence, and relationship harmony as mediating variables to evaluate the relationship between FTK and product innovation levels of multinational pharmaceutical firms. For data analysis and calculation, some significant techniques were used such as KMO, SEM and descriptive statistics. Furthermore, the results and discussions illustrate that the foreign tacit knowledge has a positive influence on pharmaceutical product innovation which further enhances the performance of the firms. Similarly, ICT competence, and relationship harmony have a positive mediating role in the relationship between tacit knowledge and product innovation while knowledge exchange has a insignificant mediating role. The findings of this research study have many managerial as well as practical implications. From a managerial point of view, this study helps managers of multinational companies to identify the impact of FTK on overall and product performance.
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