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When the management of an information technology (IT) manufacturing firm perceives a need for innovation due to any threat in the external environment, it will be prompted to use organizational resources to support innovation and improve organizational performance through the implementation of the innovation. The purpose of this paper is to explore whether an IT manufacturing firm’s budget slack, information quality of information system (IS), process innovation and product innovation would interact to collectively form an innovation capacity, which is termed “innovation capability configuration (ICC)”, and whether ICC mediates the relationship between perceived innovation requirement and organizational performance.

To answer these questions, a structural equation model was built and a questionnaire survey was conducted to collect data from research and development and production managers of IT manufacturing companies listed on the Taiwan Stock Exchange and Over-The-Counter markets.

The results showed that budget slack, IS information quality, process innovation and product innovation are all significantly related to ICC, in which high-quality information and low level of budget slack are the key factors that underpin the innovation capacity. In addition, ICC has a full mediation effect, that is, perceived innovation requirement positively influences ICC, which, in turn, improves organizational performance.

Because all items in a questionnaire were answered by a manager, the common method variance might exist in this study. In addition, the effective recovery rate of the questionnaire was not high due to which the non-response bias might occur. Following the research limitations, several future research recommendations are proposed.

This study offers managerial implications for the development of an IT manufacturing firm’s innovation strategy and structure to smooth the implementation of innovation in the severe environment.

The study is the first attempt to integrate the four elements clearly illustrating the ICC, which is a more complete innovation strategy, thus contributing to improve the past fragmental studies and clarify some controversial points existing in the extant innovation research.

Man has been seeking an ideal existence for a very long time. In this existence, justice, love, and peace are no longer words, but actual experiences. How ever, with the American preemptive invasion and occupation of Afghanistan and Iraq and the subsequent prisoner abuse, such an existence seems to be farther and farther away from reality. The purpose of this work is to stop this dangerous trend by promoting justice, love, and peace through a change of the paradigm that is inconsistent with justice, love, and peace. The strong paradigm that created the strong nation like the U.S. and the strong man like George W. Bush have been the culprit, rather than the contributor, of the above three universal ideals. Thus, rather than justice, love, and peace, the strong paradigm resulted in in justice, hatred, and violence. In order to remove these three and related evils, what the world needs in the beginning of the third millenium is the weak paradigm. Through the acceptance of the latter paradigm, the golden mean or middle paradigm can be formulated, which is a synergy of the weak and the strong paradigm. In order to understand properly the meaning of these paradigms, however, some digression appears necessary.

The purpose of this study is to introduce a unified framework which integrates knowledge management processes (knowledge creation, sharing, storage and documentation and acquisition), innovation capability (product, process, marketing and organizational and organizational performance (operational, financial and product quality). Then empirically test the effect of knowledge management processes (KMP) on innovation capability (IC), the effect of IC on organizational performance (OP) and the impact of KMP on OP through the mediator (IC).

A questionnaire was designed and addressed to the general managers of the Jordanian companies making up the target population. Statistical techniques employed included confirmatory factor analysis and structural equation modeling (SEM) using AMOS 24 to test the hypotheses.

The results show that KMP influences IC, IC affects OP and KMP impacts OP through the mediator (IC).

The use of longitudinal data and comparisons with this study would provide further insights that would assist in generalizing knowledge related to the relationships among KMP, IC and Os' P.

If organizations fully comprehend KMP and IC, they would be able to implement them successfully, creating value for their companies and improving OP.

The existing research on KMP and IC is primarily conceptual and descriptive in nature, and empirical research confirming the real impact of KMP when developing IC is lacking. Also. the relationship between innovation capabilities and OP has not been adequately studied. Hence, this study introduces a conceptual framework which integrates KMP, IC and OP and simultaneously empirically tests the relationships among them.