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Harnessing value in knowledge acquisition and dissemination: strategic sourcing in product development

Knowledge acquisition and dissemination have been considered as two endpoints of knowledge management (KM) process. Knowledge management affects new product performance through the two endpoints on the knowledge value chain. This study attempts to find how the knowledge acquisition and dissemination are related to new product financial performance. Employing additivity and variance stabilisation (AVAS) analysis, this paper examines the relationship between KM and the new product financial performance, and identifies different hidden patterns in which knowledge acquisition and dissemination affect new product financial performance. These findings imply that if organisations fail to understand the subtle ways by which different dimensions of knowledge acquisition and dissemination influence new product performance, they may fail to harvest the full value of KM in developing new products.