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This study aims to present a model and analysis of automotive body outer cover panels (OCPs) assembly systems to predict assembly variation. In the automotive industry, the OCPs assembly process directly influences the quality of the automobile body appearance. However, suitable models to describe variation propagation of OCPs assembly systems remain unknown.

An adaptive state space model for OCPs assembly systems is introduced to accurately express variation propagation, including variation accumulation and transition, where two compliant deviations make impacts on key product characteristics (KPCs) of OCP, and the impacts are accumulated from welding process to threaded connection process. Another new source of variation from threaded connection is included in this model. To quantify the influence of variation from threaded connection on variation propagation, the threaded connection sensitivity matrix is introduced to build up a linear relationship between deviation from threaded connection and output deviation in KPCs. This matrix is solved by homogeneous coordinate transformation. The final deviation of KPCs will be transferred to ensure gaps and flushes between two OCPs, and the transition matrix is considered as a unit matrix to build up the transition relationship between different states.

A practical case on the left side body structure is described, where simulation result of variation propagation reveals the basic rule of variation propagation and the significant effect of variation from threaded connection on variation propagation of OCPs assembly system.

The model can be used to predict assembly variation or potential dimension problems at a preliminary assembly phase. The calculated results of assembly variation guide designers or technicians on tolerance allocation, fixture layout design and process planning.

The purpose of this paper is to examine innovation from a knowledge‐based view by exploring the effect of knowledge processes and knowledge intensity on innovation performance.

First, a theoretical model of the connections between knowledge processes, knowledge intensity and innovation performance is presented. The posited hypotheses are then tested statistically, using a survey dataset of 221 organizations.

The result shows that while all knowledge processes have a beneficial impact on innovation, knowledge creation impacts innovation the most and fully mediates the impact of knowledge documentation, intra‐organizational knowledge sharing and external knowledge acquisition on innovation performance. Furthermore, knowledge intensity increases all knowledge processes. Knowledge intensity also moderates the relationship of documentation and knowledge sharing with knowledge creation. The interaction effect is negative, meaning that firms in less knowledge‐intensive conditions will benefit more from documentation and knowledge sharing for their knowledge creation purposes, and ultimately innovation.

The data are limited to companies from Finland, Russia and China.

To promote innovation, managers should pay close attention to knowledge creation processes in organizations. Furthermore, knowledge creation can be facilitated by ensuring efficient documentation procedures, and internal and external knowledge sharing and acquisition practices. Documentation and knowledge sharing are especially effective means to promote knowledge creation for non‐knowledge intensive firms.

This paper makes a contribution to the existing literature by building and testing a knowledge‐based model of firm innovation and articulating the inter‐relations of knowledge processes and knowledge intensity with innovation performance.