Working Paper Series Examining the Link between Knowledge Management Practices and Types of Innovation Examining the Link between Knowledge Management Practices and Types of Innovation

The management of knowledge is frequently identified as an important antecedent of innovation (Antonelli, 1999; Carneiro, 2000; Dove, 1999; Nonaka & Takeuchi, 1995). However, very little empirical research has specifically addressed antecedents and consequences of effective knowledge management. Using data collected from 443 New Zealand firms, a knowledge management instrument, which comprises 3 components and 13 factors, is regressed against a three-factor innovation scale that captures incremental innovation, innovation that changes consumers’ behaviour and innovation that destroys existing competencies. The results of this research show that knowledge acquisition and responsiveness to knowledge are more important for innovation than knowledge dissemination.