The impact of tacit knowledge and effectuation on innovation performance in firms

Abstract

Some firms are more active at using their tacit knowledge capital than others. This can affect innovation activities and improve performance among firms with corresponding resources. The current study critically examines the literature of tacit knowledge and introduces a novel concept - effectuation - to determine whether the interplay of these two dimensions can lead to positive results in a firm’s innovative capability. In particular, the purpose of this study is twofold: First, it proposes a better matching of tacit knowledge with innovative performance in organizations. Second, it puts forward that individuals with an effectual approach will improve the innovative capability among individuals in organizations. To achieve these purposes, 162 surveys from a service industry in Lebanon were collected and the Structural Equation Modeling (SEM) was used as a statistical methodology. The study concludes that there exist multiple tactics to innovation management which play an important role in embracing different perspectives in their analysis. © 2017 by Nova Science Publishers, Inc. All rights reserved.