Muzaffar Abbas, Haider Mahmood, Maham Furqan, Thikryat Jibril Qaralleh

The Knowledge-Innovation Pathway: How Organizational Culture, Structure, and Technology Drive Process Improvement and Product Innovation

Introduction

The knowledge-innovation pathway: how organizational culture, structure, and technology drive process improvement and product innovation. Discover how organizational culture, structure, and technology drive process improvement and product innovation in small enterprises. Uncover the mediating roles of knowledge sharing and process improvement.

Abstract

Aim. This study investigates the interplay between process improvement (PRI), organizational innovation (OIN), knowledge sharing (KWS), and product innovation (PIN) in small commercial enterprises, framed within the Resource-Based View (RBV) paradigm. Method. Given the relationship of the variables, the Structural equation modeling (SEM) was the most appropriate technique employed to analyze the relationships among these constructs, focusing on mediation effects and pathways influencing innovation outcomes. The results show a direct and positively significant relationship between PRI, OIN, KWS, and PIN, underscoring their synergistic roles in driving innovation. Whereas Knowledge sharing (KWS) mediates the influence of organizational factors (cultural norms, organizational structure and use of advanced technological infrastructure) on product innovation (PIN). The process improvement (PRI) acts as an intermediary between knowledge transfer, organizational change, and PIN. Organizational Innovation (OIN) directly enhances both product innovation (PIN) and knowledge-sharing practices, fostering a culture of continuous improvement. Results. The findings validate RBV’s relevance in small enterprises, highlighting how intangible resources (e.g., knowledge, processes) drive competitive advantage through innovation. The dual mediation roles of KWS and PRI clarify mechanisms linking organizational capabilities to innovation outcomes. Conclusion. Small enterprises should prioritize the cultivation of a knowledge-sharing culture and robust technological infrastructure to amplify innovation, aligning process improvement initiatives with organizational change strategies to bridge gaps between knowledge and product development.

Review

This study presents a compelling investigation into the "Knowledge-Innovation Pathway," effectively utilizing the Resource-Based View (RBV) to explore how organizational culture, structure, and technology collectively drive process improvement (PRI) and product innovation (PIN) in small commercial enterprises. The authors employ Structural Equation Modeling (SEM), an appropriate methodology for analyzing the complex relationships and mediation effects between core constructs: PRI, organizational innovation (OIN), knowledge sharing (KWS), and PIN. The findings highlight significant direct and positive relationships among these variables, with a particular emphasis on the crucial dual mediating roles of KWS and PRI, which serve to clarify the mechanisms linking organizational capabilities to innovation outcomes. While the abstract clearly outlines the study's aim and central findings, several areas would benefit from further elaboration in the full paper. The claim that KWS mediates the influence of "organizational factors (cultural norms, organizational structure and use of advanced technological infrastructure)" on PIN is a significant assertion; however, it is not explicitly stated whether these "organizational factors" were measured as distinct latent variables within the SEM model. Clarification on the operationalization of these factors, and whether they served as observed or latent variables, is essential for a complete understanding of the model's integrity. Similarly, the introduction of "knowledge transfer" and "organizational change" as intermediaries for PRI's role requires more detail, particularly regarding their distinction from KWS and their inclusion as measured constructs in the model. Despite these minor ambiguities regarding construct definition and model specification, the study makes a valuable contribution to both theory and practice. It reinforces the applicability of RBV in small enterprise contexts, demonstrating how intangible resources translate into competitive advantage. The identified mediation pathways offer nuanced insights into the dynamic interplay of knowledge, processes, and innovation, moving beyond simplistic direct effect models. The conclusions offer clear, actionable recommendations for small enterprises, emphasizing the strategic importance of cultivating a knowledge-sharing culture, investing in robust technological infrastructure, and aligning process improvement with organizational change to foster sustainable product innovation. This research provides a solid foundation for future studies exploring contextual moderators of these innovation pathways.

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