The Effect of Knowledge Management on Product Innovation - Evidence from the Chinese Software Outsourcing Vendors

Abstract

The knowledge acquisition and exploitation are becoming more and more for local vendors in offshore outsourcing cooperation. In the process of product innovation, internal knowledge sharing (IKS), external knowledge acquisition (EKA) and their interactive relationship is discussed. Through the using of the method of 3SLS, the results of STATA indicate that IKS and EKA positively complement for product innovation. Furthermore, the result of SPSS reveals that knowledge exploitation mediates the (IKS) EKA and product innovation.