The innovation and economic consequences of knowledge spillovers: fit between exploration and exploitation capabilities, knowledge attributes, and transfer mechanisms

Abstract

The purpose of this study is to investigate the moderating roles of the attributes and transfer mechanisms of knowledge in the relationship between organisational capabilities and innovation and economic performance. Regression analysis on a sample of 120 Taiwanese firms was used to test our model. The findings suggest that the organisational capabilities of exploration and exploitation are positively related to innovation and economic performance. The effect of exploration on performance is positively moderated by tacit knowledge and adaptation knowledge transfer mechanisms. In contrast, exploitation is a stronger predictor of performance when organisations acquire well-defined knowledge and use replication knowledge transfer mechanisms.