Today’s competitive business environment has made organizational innovation (OI) a central strategy for most firms. Not only does OI lead to obtaining new customers and market segments but it also enables firms to develop a reputation for being innovative. To ensure a sustained level of OI, firms need to enhance their customer knowledge management (CKM) as well as their dynamic marketing capabilities (DMCs). This study focuses on investigating the mediating effect of DMCs on the relationship between CKM and OI. To this end, a set of hypotheses were developed to analyse these relationships employing structural equation modelling. The data were collected from a total of 242 top management of firms in the pharmaceutical and healthcare industries in Jordan. The findings showed that knowledge for customer and knowledge about customer had strong and positive effects on the OI levels of the firms considered in this study. It was also revealed that knowledge from customer has no significant effect on OI. Moreover, the results indicated that DMCs have a mediating effect on the relationship between CKM and OI.
AlaniE., KamarudinS., AlrubaieeL., & TavakoliR. (2019). A model of the relationship between strategic orientation and product innovation under the mediating effect of customer knowledge management. Journal of International Studies, 12(3). 10.14254/2071-8330.2019/12-3/19
2.
AlrubaieeL., & Al-NazerN. (2010). Investigate the impact of relationship marketing orientation on customer loyalty: The customer’s perspective. International Journal of Marketing Studies, 2(1), 155.
3.
AlrubaieeL., AlzubiH. M., HanandehR. E., & Al AliR. (2015). Investigating the relationship between knowledge management processes and organizational performance: The mediating effect of organizational innovation. International Review of Management and Business Research, 4(4 Part 1), 989.
4.
ArshadA. S., RasliA., & KhanY. K. (2018). Linking innovativeness and business performance: A Study of Malaysian technology-based SMEs. Journal of Management Info, 5(1), 13–16.
5.
BaronR. M., & KennyD. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173.
6.
Barrales-MolinaV., Martínez-LópezF. J., & Gázquez-AbadJ. C. (2014). Dynamic marketing capabilities: Toward an integrative framework. International Journal of Management Reviews, 16(4), 397–416.
7.
Bastanchury-LópezM. T., De-Pablos-HerederoC., Montes-BotellaJ. L., Martín-Romo-RomeroS., & GarcíaA. (2020). Impact of dynamic capabilities on performance in dairy sheep farms in Spain. Sustainability, 12(8), 3368.
8.
BeckerJ., KleinK., & WetzelsM. (2012). Formative hierarchical latent variable models in PLS-SEM: Recommendations and guidelines. Long Range Planning, 45(5–6), 359–394.
9.
BrodieR. J., Benson-ReaM., & MedlinC. J. (2017). Branding as a dynamic capability: Strategic advantage from integrating meanings with identification. Marketing Theory, 17(2), 183–199.
10.
BruniD. S., & VeronaG. (2009). Dynamic marketing capabilities in science-based firms: An exploratory investigation of the pharmaceutical industry. British Journal of Management, 20(s1), S101–S117.
11.
CabriloS., & DahmsS. (2018). How strategic knowledge management drives intellectual capital to superior innovation and market performance. Journal of Knowledge Management, 22(3), 621–648.
12.
CacciolattiL., & LeeS. H. (2016). Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organisational power. Journal of Business Research, 69(12), 5597–5610.
13.
CastagnaF., CentobelliP., CerchioneR., EspositoE., OropalloE., & PassaroR. (2020). Customer knowledge management in SMEs facing digital transformation. Sustainability, 12(9), 3899.
14.
ChenQ., WangC.-H., & HuangS.-Z. (2020). Effects of organizational innovation and technological innovation capabilities on firm performance: Evidence from firms in China’s Pearl River Delta. Asia Pacific Business Review, 26(1), 72–96.
15.
ChinW. W. (1998). The partial least squares approach to structural equation modeling. Modern Methods for Business Research, 295(2), 295–336.
16.
CohenJ. (1988). Statistical power analysis for the behavioral sciences (2nd edn). Erbaum Press.
17.
CostaV., & MonteiroS. (2016). Key knowledge management processes for innovation: A systematic literature review. VINE Journal of Information and Knowledge Management Systems, 46(3), 386–410. 10.1108/VJIKMS-02-2015-0017
18.
DarrochJ., & McNaughtonR. (2002). Examining the link between knowledge management practices and types of innovation. Journal of Intellectual Capital, 3(3), 210–222.
19.
DavilaG., VarvakisG., & NorthK. (2019). Influence of strategic knowledge management on firm innovativeness and performance. BBR. Brazilian Business Review, 16(3), 239–254.
20.
DayG. S. (1994). The capabilities of market-driven organizations. Journal of Marketing, 58(4), 37–52.
21.
Durmuş-ÖzdemirE., & AbdukhoshimovK. (2018). Exploring the mediating role of innovation in the effect of the knowledge management process on performance. Technology Analysis & Strategic Management, 30(5), 596–608.
22.
Easterby-SmithM., & PrietoI. M. (2008). Dynamic capabilities and knowledge management: An integrative role for learning?British Journal of Management, 19(3), 235–249.
23.
EstradaI., FaemsD., & de FariaP. (2016). Coopetition and product innovation performance: The role of internal knowledge sharing mechanisms and formal knowledge protection mechanisms. Industrial Marketing Management, 53, 56–65.
24.
FalascaM., ZhangJ., ConcharM., & LiL. (2017). The impact of customer knowledge and marketing dynamic capability on innovation performance: An empirical analysis. Journal of Business & Industrial Marketing, 32(7), 901–912.
25.
FangE., & ZouS. (2009). Antecedents and consequences of marketing dynamic capabilities in international joint ventures. Journal of International Business Studies, 40(5), 742–761.
26.
FornellC., & LarckerD. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
27.
GallegoJ., RubalcabaL., & HippC. (2013). Organizational innovation in small European firms: A multidimensional approach. International Small Business Journal, 31(5), 563–579.
28.
García-CruzJ., RealJ. C., & RoldánJ. L. (2018). Managerial perceptions of employees, affective commitment and product innovation. Economics of Innovation and New Technology, 27(3), 290–305.
29.
García-MurilloM., & AnnabiH. (2002). Customer knowledge management. Journal of the Operational Research Society, 875–884.
GibbertM., LeiboldM., & ProbstG. (2002). Five styles of customer knowledge management, and how smart companies use them to create value. European Management Journal, 20(5), 459–469.
32.
Gil-GomezH., Guerola-NavarroV., Oltra-BadenesR., & Lozano-QuilisJ. A. (2020). Customer relationship management: Digital transformation and sustainable business model innovation. Economic Research-Ekonomska Istraživanja, 33(1), 2733–2750.
33.
GulatiK., MundraN., & TrehanK. (2014). Knowledge management-success platform for service innovations and 7 P’s of services. FIIB Business Review, 3(1), 54–60.
34.
HairJ. F., RingleC. M., & SarstedtM. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. 10.2753/MTP1069-6679190202
35.
HairJ. F., SarstedtM., RingleC. M., & MenaJ. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414–433.
36.
HanY. (2019). The relationship between ambidextrous knowledge sharing and innovation within industrial clusters: Evidence from China. Interdisciplinary Journal of Information, Knowledge and Management, 14, 145–164.
37.
HanedaS., & ItoK. (2018). Organizational and human resource management and innovation: Which management practices are linked to product and/or process innovation?Research Policy, 47(1), 194–208.
38.
HarrimH. M. (2010). Relationship between learning organization and organizational performance: Empirical study of pharmaceutical firms in Jordan. Jordan Journal of Business Administration, 6(3), 405–424.
39.
HenselerJ., RingleC. M., & SarstedtM. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
40.
HoppnerJ. J., GriffithD. A., & WhiteR. C. (2015). Reciprocity in relationship marketing: A cross-cultural examination of the effects of equivalence and immediacy on relationship quality and satisfaction with performance. Journal of International Marketing, 23(4), 64–83.
41.
HorvatJ., SharmaK., & BobekS. (2016). Key factors for knowledge management: Pilot study in IT SMEs. FIIB Business Review, 5(3), 32–40.
42.
HsuI. C., & SabherwalR. (2012). Relationship between intellectual capital and knowledge management: An empirical investigation. Decision Sciences, 43(3), 489–524.
43.
HurleyR. F., & HultG. T. M. (1998). Innovation, market orientation, and organizational learning: An integration and empirical examination. Journal of Marketing, 62(3), 42–54.
44.
JiaX., ChenJ., MeiL., & WuQ. (2018). How leadership matters in organizational innovation: A perspective of openness. Management Decision, 56(1), 6–25.
45.
JoshiM. P., DasS. R., & MouriN. (2015). Antecedents of innovativeness in technology-based services (TBS): Peering into the black box of entrepreneurial orientation. Decision Sciences, 46(2), 367–402.
46.
KargaranS., Jami PourM., & MoeiniH. (2017). Successful customer knowledge management implementation through social media capabilities. VINE Journal of Information and Knowledge Management Systems, 47(3), 353–371.
KaurV. (2023). Knowledge-based dynamic capabilities: A scientometric analysis of marriage between knowledge management and dynamic capabilities. Journal of Knowledge Management, 27(4), 919–952. 10.1108/JKM-02-2022-0112
49.
KaurV., & MehtaV. (2016). Knowledge-based dynamic capabilities: A new perspective for achieving global competitiveness in IT sector. Pacific Business Review International, 1(3), 96–106.
50.
KaurV., & MehtaV. (2017). Dynamic capabilities for competitive advantage: A comparative study of IT multinationals in India. Paradigm, 21(1), 31–51.
51.
KimJ., & BooS. (2010). Dynamic capabilities and performance of meeting planners. Journal of Travel & Tourism Marketing, 27(7), 736–747.
52.
KrasnikovA., & JayachandranS. (2008). The relative impact of marketing, research-and-development, and operations capabilities on firm performance. Journal of Marketing, 72(4), 1–11.
53.
KurniawatiA., WiratmadjaI. I., SunaryoI., & Ari SamadhiT. M. A. (2019). Relationship among knowledge management, innovation, and performance: A systematic literature review. 2019 IEEE 6th International Conference on Industrial Engineering and Applications (ICIEA). 10.1109/IEA.2019.8714825
54.
LiW. (2015). The concept and scale development of the marketing dynamic capabilities. Journal of Business Economics, 280(2), 68–77.
55.
LinH., QuT., & HuY. (2020). How do organizational routines paradoxically affect organizational innovation?European Journal of Innovation Management, 24(4), 1400–1429. 10.1108/EJIM-03-2020-0093
56.
MaZ., & JinQ. (2019). Success factors for product innovation in China’s manufacturing sector: Strategic choice and environment constraints. International Studies of Management & Organization, 49(2), 213–231.
57.
MaX., YaoX., & XiY. (2009). How do interorganizational and interpersonal networks affect a firm’s strategic adaptive capability in a transition economy?Journal of Business Research, 62(11), 1087–1095.
58.
MassaroM., HandleyK., BagnoliC., & DumayJ. (2016). Knowledge management in small and medium enterprises: A structured literature review. Journal of Knowledge Management, 20(2), 258–291.
59.
MilesJ. A. (2012). Management and organization theory: A Jossey-Bass reader (Vol. 9). John Wiley & Sons.
60.
MilletK. (2020). HRM and workplace innovation: A study on HRM practices influencing innovation workplace behaviour. Studies in Indian Place Names, 40(8), 61–75.
61.
MitręgaM. (2019). Dynamic marketing capability: Refining the concept and applying it to company innovations. Journal of Business & Industrial Marketing, 35(2), 193–203.
62.
MuraliA., & KumarS. K. (2014). Knowledge management and human resource management (HRM): Importance of integration. FIIB Business Review, 3(1), 3–10.
63.
NajmiK., KadirA. R., & KadirM. I. A. (2018). Mediation effect of dynamic capability in the relationship between knowledge management and strategic leadership on organizational performance accountability. International Journal of Law and Management, 60(2), 517–529. 10.1108/IJLMA-01-2017-0004
64.
NasutionH. N., MavondoF. T., MatandaM. J., & NdubisiN. O. (2011). Entrepreneurship: Its relationship with market orientation and learning orientation and as antecedents to innovation and customer value. Industrial Marketing Management, 40(3), 336–345.
65.
NgoL. V., & O’cassA. (2013). Innovation and business success: The mediating role of customer participation. Journal of Business Research, 66(8), 1134–1142.
66.
NickersonJ. A., & ZengerT. R. (2004). A knowledge-based theory of the firm: The problem-solving perspective. Organization Science, 15(6), 617–632.
67.
NievesJ., QuintanaA., & OsorioJ. (2016). Organizational knowledge, dynamic capabilities and innovation in the hotel industry. Tourism and Hospitality Research, 16(2), 158–171.
68.
ObeidatB. Y., Al-HadidiA., TarhiniA., & Masa’dehR. (2017). Factors affecting strategy implementation: A case study of pharmaceutical companies in the Middle East. Review of International Business and Strategy, 27(3), 386–408.
69.
ParastM. M., SabahiS., & KamalahmadiM. (2019). The relationship between firm resilience to supply chain disruptions and firm innovation. In Revisiting supply chain risk (pp. 279-298). Springer.
70.
PawlowskyP., & SchmidS. (2012). Interrelations between strategic orientation, knowledge management, innovation and performance. Empirical findings from a national survey in Germany. International Journal of Knowledge Management Studies, 5(1–2), 185–209.
71.
PengZ. (2020). IT-based knowledge, adaptive behavior and service performance improvement.
72.
PodsakoffN. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 885(879), 10.1037.
73.
RahmanB. A., & Mohd ShariffM. N. (2020). Knowledge-based Malaysian GLC: Are they more innovative and performing much better?Malaysian Management Journal, 13(1–2), 11–19.
74.
RitalaP., HenttonenK., SalojärviH., SainioL.-M., & SaarenketoS. (2013). Gone fishing for knowledge? The effect of strategic orientations on the scope of open knowledge search. Baltic Journal of Management, 8(3), 328–348.
75.
Ritter-HayashiD., KnobenJ., & VermeulenP. A. (2020). Success belongs to the flexible firm: How labor flexibility can retain firm innovativeness in times of downsizing. Long Range Planning, 53(3), 101914.
76.
RoachD., RymanJ., JonesR., & RymanH. (2018). Enhancing innovativeness: The role of dynamic marketing capabilities. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l’Administration, 35(4), 563–576.
77.
RollinsM., & HalinenA. (2005). Customer knowledge management competence: Towards a theoretical framework. System sciences, 2005. HICSS’05. Proceedings of the 38th Annual Hawaii International Conference on,
78.
SaeedA., & ZiaulhaqH. M. (2019). The impact of CEO characteristics on the internationalization of SMEs: Evidence from the UK. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l’Administration, 36(3), 322–335.
79.
SanazK., MonaJ. P., & HosseinM. (2017). Successful customer knowledge management implementation through social media capabilities. VINE Journal of Information and Knowledge Management Systems, 47(3), 353–371. doi:10.1108/VJIKMS-11-2016-0066
80.
SantamaríaL., NietoM. J., & RodríguezA. (2021). Failed and successful innovations: The role of geographic proximity and international diversity of partners in technological collaboration. Technological Forecasting and Social Change, 166, 120575.
81.
SareenA., & PandeyS. (2022). Organizational innovation in knowledge intensive business services: The role of networks, culture and resources for innovation. FIIB Business Review, 11(1), 107–118.
82.
SarstedtM., HairJ. F., CheahJ.-H., BeckerJ.-M., & RingleC. M. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal (AMJ), 27(3), 197–211.
83.
ShahS. Z. A., AnwarM., & HussainC. M. (2021). Top managers’ attributes, innovation, and the participation in China–Pakistan economic corridor: A study of energy sector small and medium-sized enterprises. Managerial and Decision Economics, 42(2), 385–406.
84.
ShenJ., ShaZ., & WuY. J. (2020). Enterprise adaptive marketing capabilities and sustainable innovation performance: An opportunity–resource integration perspective. Sustainability, 12(2), 469.
85.
ShujahatM., SousaM. J., HussainS., NawazF., WangM., & UmerM. (2019). Translating the impact of knowledge management processes into knowledge-based innovation: The neglected and mediating role of knowledge-worker productivity. Journal of Business Research, 94, 442–450.
86.
StadlerC., HelfatC. E., & VeronaG. (2013). The impact of dynamic capabilities on resource access and development. Organization Science, 24(6), 1782–1804.
87.
SulistyoH., & WuryantiW. (2020). SMEs performance: The role of customer knowledge management and marketing dynamic capability. Proceedings of the 3rd International Conference on Education & Social Science Research (ICESRE),
88.
TaghizadehS. K., RahmanS. A., & HossainM. M. (2018). Knowledge from customer, for customer or about customer: Which triggers innovation capability the most?Journal of Knowledge Management, 22(1), 162–182.
89.
TaherparvarN., EsmaeilpourR., & DostarM. (2014). Customer knowledge management, innovation capability and business performance: A case study of the banking industry. Journal of Knowledge Management, 18(3), 591–610.
90.
TanQ., & SousaC. M. (2015). Leveraging marketing capabilities into competitive advantage and export performance. International Marketing Review, 32(1), 78–102.
TomizawaA., ZhaoL., BassellierG., & AhlstromD. (2020). Economic growth, innovation, institutions, and the great enrichment. Asia Pacific Journal of Management, 37(1), 7–31.
93.
VillarC., AlegreJ., & Pla-BarberJ. (2014). Exploring the role of knowledge management practices on exports: A dynamic capabilities view. International Business Review, 23(1), 38–44.
94.
VolberdaH. W., FossN. J., & LylesM. A. (2010). Perspective—Absorbing the concept of absorptive capacity: How to realize its potential in the organization field. Organization Science, 21(4), 931–951.
95.
WalugembeA., NtayiJ., BakundaG., NgomaM., MuneneJ., & BoxP. (2017). Dynamic marketing capabilities and new product adoption: The mediating role of consumer based brand equity. International Journal of Scientific Research and Innovative Technology, 4(10), 242–262.
96.
WangT., & ChenY. (2018). Capability stretching in product innovation. Journal of Management, 44(2), 784–810.
97.
WeerawardenaJ., MortG. S., SalunkeS., KnightG., & LieschP. W. (2015). The role of the market sub-system and the socio-technical sub-system in innovation and firm performance: A dynamic capabilities approach. Journal of the Academy of Marketing Science, 43(2), 221–239.
98.
WuJ., GuoB., & ShiY. (2013). Customer knowledge management and IT-enabled business model innovation: A conceptual framework and a case study from China. European Management Journal, 31(4), 359–372.
99.
XuH., GuoH., ZhangJ., & DangA. (2018). Facilitating dynamic marketing capabilities development for domestic and foreign firms in an emerging economy. Journal of Business Research, 86, 141–152.
100.
XuJ., HoussinR., CaillaudE., & GardoniM. (2010). Macro process of knowledge management for continuous innovation. Journal of Knowledge Management, 14(4), 573–591.
101.
XuX., YangC., & RenJ. (2020). Research on the relationship between novelty-centered business model innovation and competitive advantages of sports tourism: Based on the empirical analysis of Guizhou Province, China. Journal of Service Science and Management, 13(2), 317–329.
102.
YasmeenH., WangY., ZameerH., & WaheedA. (2019). Service-innovation capability founded on knowledge from customers. Human Systems Management, 38(1), 29–41.
103.
YousefE. M. M. A. (2020). The determinants of labor productivity in Jordan during the period 1980–2017. Journal of Business and Economics Research, 9(1), 21–28.
104.
Yu-PeiW., Meng-YingH., & Li-KeL. (2016). Impact of customer knowledge management on enterprise innovation performance. DEStech Transactions on Engineering and Technology Research(sste). 10.12783/dtetr/sste2016/6599
105.
ZahraS. A. (1996). Governance, ownership, and corporate entrepreneurship: The moderating impact of industry technological opportunities. Academy of Management Journal, 39(6), 1713–1735.
106.
ZhanY., TanK. H., & HuoB. (2019). Bridging customer knowledge to innovative product development: A data mining approach. International Journal of Production Research, 57(20), 6335–6350.
107.
ZhangH. Q., & LuR. Y. (2012). The empirical research of the effect of customer knowledge management on service innovation capability. Science of Science and Management of S. & T, 33(8), 66–73.
108.
Zhang WangX., & Liu. (2008). Study of relationship between market knowledge competence, marketing capability and organizational performance. Journal of Dalian University of Technology, 29(2), 19–24.
109.
ZhouZ. (2022). Customer knowledge management and its impact on enterprise product innovation performance. Industrial Engineering and Innovation Management, 5(11), 58–72.
110.
ZolloM., & WinterS. G. (2002). Deliberate learning and the evolution of dynamic capabilities. Organization Science, 13(3), 339–351.
