Distinctive Competencies and Process of Innovation during Organizational Mergers: The Moderating Effect of Knowledge Vacuum

Abstract

The practice of organizational merger may face both contra and supportive conditions. Organizational changes due to merger often occur as a result of both process and knowledge inertia. In particular, this is widely encountered in a research and development (R&D) agency, which its core activity is innovation. Merger among R&D organizations is aimed to achieve legit images, but it also may delay innovation process. This study aims to measure the effect of knowledge vacuum as a moderating variable between distinctive competencies and process of innovation. A number of 90 targeted researchers and engineers from various former public research & development agencies were involved in a questionnaire survey. Data were analyzed using partial least square-structural equation modeling (PLS-SEM). The results show that distinctive competencies significantly affect process of innovation, meanwhile knowledge vacuum is not a significant moderating variable between distinctive competencies and process of innovation. The most important aspects of distinctive competencies are to define detailed process of innovation from start to end and to be able to commercialize innovation output. These aspects will boost the organizational changes to achieve new goals and maintain innovation process. In this case of insignificant knowledge vacuum, the possibility of open innovation is adequate.