This article expands current knowledge by assessing how customer knowledge management influence services innovation capability and what is the reciprocal effect of innovation capability on particular dimensions of customer knowledge management. Unexplored in earlier studies, the article has developed a list of hypothesis through an extensive literature survey, hypothesis were empirically tested, with survey data collected from 319 managerial employees. The results show that knowledge about customers, knowledge for customers, knowledge from customers and knowledge co-created with customers significantly influences service-innovation capability. Yet knowledge from customers appears to have a most powerful effect on innovation capability. The results from reciprocal causation show that innovation capability has significant impact upon all selected dimensions of customer knowledge management. But, the most power influence is found upon knowledge for customers. The article concludes with the study’s qualifications, plus it offers pivotal recommendations for both practitioners and future-research directions.
WuIL, LinHC. A strategy-based process for implementing knowledge management: An integrative view and empirical study [J]. Journal of the Association for Information Science and Technology. 2009;60(4):789–802.
2.
GrewalD, RoggeveenAL, NordfältJ. The future of retailing [J]. Journal of Retailing. 2017;93(1):1–6.
3.
MartovoyA, MentionA-L. Patterns of new service development processes in banking [J]. International Journal of Bank Marketing. 2016;34(1):62–77.
4.
AfshanS, SharifA. Acceptance of mobile banking framework in Pakistan [J]. Telematics and Informatics. 2016;33(2):370–87.
5.
TaherparvarN, EsmaeilpourR, DostarM. Customer knowledge management, innovation capability and business performance: A case study of the banking industry [J]. Journal of knowledge management. 2014;18(3):591–610.
6.
DesouzaKC, et al, Customer-driven innovation [J]. Research-Technology Management. 2008;51(3):35–44.
7.
WengC-H, HuangTC-K. Knowledge acquisition of association rules from the customer-lifetime-value perspective [J]. Kybernetes. 2018.
8.
Archer-BrownC, KietzmannJ. Strategic knowledge management and enterprise social media [J]. Journal of knowledge management. 2018.
9.
ZameerH, et al, Corporate image and customer satisfaction by virtue of employee engagement [J]. Human Systems Management. 2018;37(2):233–48.
10.
LuschRF, NambisanS. Service innovation: A service-dominant logic perspective [J]. MIS quarterly. 2015;39(1).
11.
ParidaV, et al, Developing global service innovation capabilities: How global manufacturers address the challenges of market heterogeneity [J]. Research-Technology Management. 2015;58(5):35–44.
12.
SaldanhaTJ, MithasS, KrishnanMS. Leveraging customer involvement for fueling innovation: The role of relational and analytical information processing capabilities [J]. MIS quarterly. 2017;41(1).
13.
ChuaAY, BanerjeeS. Customer knowledge management via social media: The case of Starbucks [J]. Journal of Knowledge Management. 2013;17(2):237–49.
14.
MehdibeigiN, DehghaniM, Mohammad YaghoubiN. Customer knowledge management and organization’s effectiveness: Explaining the mediator role of organizational agility [J]. Procedia-Social and Behavioral Sciences. 2016;230, 94–103.
15.
TaghizadehSK, RahmanSA, HossainMM. Knowledge from customer, for customer, or about customer: Which triggers innovation capability the most? [J]. Journal of Knowledge Management. 2018;22(1):162–82.
16.
CuiAS, WuF. Utilizing customer knowledge in innovation: Antecedents and impact of customer involvement on new product performance [J]. Journal of the Academy of Marketing Science. 2016;44(4):516–38.
17.
MbamaCI, EzepuePO. Digital banking, customer experience and bank financial performance: UK customers’ perceptions [J]. International Journal of Bank Marketing. 2018;36(2):230–55.
18.
BrennerW, et al, Improving Customer Interaction with Customer Knowledge Management, in Electronic Customer Relationship Management, 2015, Routledge. pp. 123–40.
19.
WomackJP, JonesDT. Lean solutions: How companies and customers can create value and wealth together: Simon and Schuster, 2015.
20.
GibbertM, LeiboldM, ProbstG. Five styles of customer knowledge management, and how smart companies use them to create value [J]. European Management Journal. 2002;20(5):459–69.
RowleyJE. Reflections on customer knowledge management in e-business [J]. Qualitative Market Research: An International Journal. 2002;5(4):268–80.
23.
SalomannH, et al, Rejuvenating customer management: How to make knowledge for, from and about customers work [J]. European Management Journal. 2005;23(4):392–403.
24.
ZanjaniMS, RouzbehaniR, DabbaghH. Proposing a conceptual model of customer knowledge management: A study of CKM tools in British dotcoms [J]. Management. 2008;7(8):19.
25.
DavenportTH, HarrisJG, KohliAK. How do they know their customers so well? [J]. MIT Sloan Management Review. 2001;42(2):63.
26.
TsengS-M. Correlations between external knowledge and the knowledge chain as impacting service quality [J]. Journal of Retailing and Consumer Services. 2012;19(4):429–37.
27.
TsengS-M. A study on customer, supplier, and competitor knowledge using the knowledge chain model [J]. International Journal of Information Management. 2009;29(6):488–96.
28.
MassaroM, et al, Knowledge management in small and medium enterprises: A structured literature review [J]. Journal of Knowledge Management. 2016;20(2):258–91.
29.
Aarikka-StenroosL, JaakkolaE. Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process [J]. Industrial Marketing Management. 2012;41(1):15–26.
30.
ZhangX, ChenR. Examining the mechanism of the value co-creation with customers [J]. International Journal of Production Economics. 2008;116(2):242–50.
31.
RihovaI, et al, Conceptualising customer-to-customer value co-creation in tourism [J]. International Journal of Tourism Research. 2015;17(4):356–63.
32.
KohtamäkiM, PartanenJ. Co-creating value from knowledge-intensive business services in manufacturing firms: The moderating role of relationship learning in supplier– customer interactions [J]. Journal of Business Research. 2016;69(7):2498–506.
33.
SmithHA, McKeenJD. Developments in practice XVIII-customer knowledge management: Adding value for our customers [J]. Communications of the Association for Information Systems. 2005;16(1):36.
34.
LinC, HongC. Using customer knowledge in designing electronic catalog [J]. Expert systems with Applications. 2008;34(1):119–27.
35.
StoreyC, LarbigC. Absorbing customer knowledge: How customer involvement enables service design success [J]. Journal of Service Research. 2017:1094670517712613.
36.
TsengS-M. The effect of knowledge management capability and customer knowledge gaps on corporate performance [J]. Journal of Enterprise Information Management. 2016;29(1):51–71.
37.
KhodakaramiF, ChanYE. Exploring the role of customer relationship management (CRM) systems in customer knowledge creation [J]. Information & Management. 2014;51(1):27–42.
38.
TaghizadehSK, RahmanSA, HossainMM. Knowledge from customer, for customer, or about customer: Which triggers innovation capability the most? [J]. Journal of Knowledge Management. 2017(just-accepted):00–00.
39.
RajapathiranaRJ, HuiY. Relationship between innovation capability, innovation type, and firm performance [J]. Journal of Innovation & Knowledge. 2017.
40.
SaunilaM, PekkolaS, UkkoJ. The relationship between innovation capability and performance: The moderating effect of measurement [J]. International Journal of Productivity and Performance Management. 2014;63(2):234–49.
41.
HusseinATT, et al, Knowledge sharing enablers, processes and firm innovation capability [J]. Journal of Workplace Learning. 2016;28(8):484–95.
42.
HurleyRF, HultGTM. Innovation, market orientation, and organizational learning: An integration and empirical examination [J]. The Journal of Marketing. 1998)42–54.
43.
Co-operation, O.f.E. andDevelopment/Eurostat, Guidelines for collecting and interpreting innovation data, Oslo Manual, 2005, Organisation for Economic Co-operation and Development Paris.
44.
FaberJ, HesenAB. Innovation capabilities of European nations: Cross-national analyses of patents and sales of product innovations [J]. Research Policy. 2004;33(2):193–207.
45.
KocT, CeylanC. Factors impacting the innovative capacity in large-scale companies [J]. Technovation. 2007;27(3):105–14.
46.
CamisónC, Villar-LópezA. Organizational innovation as an enabler of technological innovation capabilities and firm performance [J]. Journal of Business Research. 2014;67(1):2891–902.
47.
Najafi-TavaniS, et al, How collaborative innovation networks affect new product performance: Product innovation capability, process innovation capability, and absorptive capacity [J]. Industrial Marketing Management. 2018.
48.
JaakkolaM. Market-driven innovation capability and financial performance: Moderating effect of environmental turbulence, in The Sustainable Global Marketplace, 2015, Springer. p. 320.
49.
YamRC, et al, Analysis of sources of innovation, technological innovation capabilities, and performance: An empirical study of Hong Kong manufacturing industries [J]. Research Policy. 2011;40(3):391–402.
50.
MagnussonPR. Benefits of involving users in service innovation [J]. European Journal of Innovation Management. 2003;6(4):228–38.
51.
LanjouwJO, SchankermanM. Patent quality and research productivity: Measuring innovation with multiple indicators [J]. The Economic Journal. 2004;114(495):441–65.
52.
SmithPG, ReinertsenDG. Shortening the product development cycle [J]. Research-Technology Management. 1992;35(3):44–9.
53.
HamdiS, et al, Impact of T-shaped skill and top management support on innovation speed; the moderating role of technology uncertainty [J]. Cogent Business & Management. 2016;3(1):1153768.
54.
KandampullyJ. Innovation as the core competency of a service organisation: The role of technology, knowledge and networks [J]. European Journal of Innovation Management. 2002;5(1):18–26.
55.
SantoroG, et al, The internet of things: Building a knowledge management system for open innovation and knowledge management capacity [J]. Technological Forecasting and Social Change. 2017.
56.
Barberá-GuillemR, et al, User Involvement: How We Integrated Users into the Innovation Process and What We Learned from It, in Assistive Technologies for the Interaction of the Elderly, Springer, 2014, pp. 33–47.
57.
SharmaS, ConduitJ, HillSR. Organisational capabilities for customer participation in health care service innovation [J]. Australasian Marketing Journal (AMJ). 2014;22(3):179–88.
58.
ReichwaldR, SeifertS, WalcherD. Customers as part of value webs: Towards a framework for webbed customer innovation tools. in System Sciences, 2004. Proceedings of the 37th Annual Hawaii International Conference on. 2004. IEEE.
59.
LinH-F. Knowledge sharing and firm innovation capability: An empirical study [J]. International Journal of Manpower. 2007;28(3/4):315–32.
60.
NgahR, TaiT, BontisN. Knowledge management capabilities and organizational performance in roads and transport authority of Dubai: The mediating role of learning organization [J]. Knowledge and Process Management. 2016;23(3):184–93.
61.
KazadiK, LievensA, MahrD. Stakeholder co-creation during the innovation process: Identifying capabilities for knowledge creation among multiple stakeholders [J]. Journal of Business Research. 2016;69(2):525–40.
62.
FidelP, SchlesingerW, CerveraA. Collaborating to innovate: Effects on customer knowledge management and performance [J]. Journal of Business Research. 2015;68(7):1426–8.
63.
RossiC. Online consumer communities, collaborative learning and innovation [J]. Measuring Business Excellence. 2011;15(3):46–62.
64.
ZameerH, et al, Impact of service quality, corporate image and customer satisfaction towards customers’ perceived value in the banking sector in Pakistan [J]. International Journal of Bank Marketing. 2015;33(4):442–56.
65.
ChuangS-H, LinH-N. Co-creating e-service innovations: Theory, practice, and impact on firm performance [J]. International Journal of Information Management. 2015;35(3):277–91.
66.
López-NicolásC, Meroño-CerdánÁL. Strategic knowledge management, innovation and performance [J]. International Journal of Information Management. 2011;31(6):502–9.
67.
GeorgeD. SPSS for windows step by step: A simple study guide and reference, 17.0 update, 10/e2011: Pearson Education India.
68.
BabinB, et al, Multivariate data analysis: A global perspective, 2010, New Jersey: Prentice Hall PTR.
69.
KlineRB. Principles and practice of structural equation modeling: Guilford publications, 2015.
70.
ByrneBM. Structural equation modeling with EQS: Basic concepts, applications, and programming, Routledge, 2013.
71.
RevillaM. Reciprocal Causation, in Encyclopedia of Quality of Life and Well-Being Research, Springer, 2014, pp. 5408–9.
72.
ChurchillGA, IacobucciD. Marketing research: Methodological foundations: Dryden Press New York2006.
