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Internal, Collaborative and Competitive Knowledge Capability

This study examined the components of knowledge capability and its relationship with organizational performance. Using factor analysis on a data set from Australia, valid components were confirmed as internal, collaborative and competitive capabilities. Knowledge capabilities were found to be significantly related to both innovation outcomes and the ultimate financial performance of firms, particularly competitive knowledge capabilities. Regression analysis was used on survey based data on validated scales of knowledge management factors, and independently collected financial performance data. The most significant relationships were found in 'competitive knowledge process capability', 'knowledge culture' and 'collaborative knowledge transfer processes'.