Effects of environmental characteristics and business partner relationships on improving innovation performance through the mediation of knowledge management practices

Abstract

Purpose

This study aims to know the effects of environmental characteristics and business partner relationships on improving innovation performance through the mediation of knowledge management practices (KMPs).

Design/methodology/approach

The population of this research was all manufacturing companies engaged in the food and beverage sector categorized into large industries. According to Jakarta’s Badan Penyelenggara Jaminan Sosial (BPJS) Ketenagakerjaan (social insurance administration body of employment), large industries are industries with a number of employees > 100. However, in this research, the total population did not reach 100 but only 89 companies. The analysis unit used in this research was the companies. Data collection for this research relied on questionnaires with closed questions. The questionnaires were then distributed to the sample companies by using enumerator services. In accordance with the hypotheses formulated, the data analysis used in this research was partial least square.

Findings

The three findings are the significant and negative effect of environmental characteristics on KMPs, the significant effect of business partner relationships on innovation performance and the insignificant effect of KMPs on innovation performance. The management of food sector manufacturing companies needs to support the activities of generating ideas carried out by employees and support their innovative ideas and creativity. Good cooperation between employees and management is highly needed in an effort to develop company innovation.

Originality/value

This research used the innovation diffusion paradigm and the combination of market-based and knowledge-based paradigms is expected to fill the previous research gap and become the uniqueness and originality of this research. The second originality is that this research examined the role of the KMP variable as the moderating variable. The third originality of this research is the focus on examining the effect of business partner relationships on innovation performance. These three originalities are rarely found in previous studies. Therefore, this research is expected to complete and expand the study of knowledge management and innovation performance.

Citation

, E. and Hamid, N. (2021), "Effects of environmental characteristics and business partner relationships on improving innovation performance through the mediation of knowledge management practices", VINE Journal of Information and Knowledge Management Systems, Vol. 51 No. 1, pp. 139-162. https://doi.org/10.1108/VJIKMS-09-2019-0137