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In the Knowledge-Based Economy Era, information and knowledge considered as major forces driving economic development, and the core value of economic and society (Braun & Hadwiger, 2011; Lofaro & Mansingh, 2016; Prahalad & Hamel, 1990; Zuboff, 1996). Hence, the connection between effective knowledge management and competitive advantage more closely. Further, the knowledge acquisition and knowledge transfer were prerequisites for learning and innovation (Blome, Schoenherr & Eckstein, 2014; Hamel & Prahalad, 1994; Marouf & Khalil, 2015; Nonaka, 1994; Spender & Grant, 1996). It reflected that the importance and effectiveness of knowledge management was the key factor to affect organization’s competitiveness.
Goodman and Darr (1999) point out that the environment and conditions of knowledge transfer was important factor for person within an organization. It was important to create a happy sharing culture prior to implement knowledge management. Indeed, as mentioned above, knowledge acquisition and its’ transfer was foundation and key success factor for learning and innovation. Meanwhile, the approach of knowledge implementation and process become critical step for knowledge transfer more effectively. Because of organizational knowledge transfer achievement including distribute the best solution and experience (Szulanski, 1996), product R & D (Hansen, 1999), fast learning (Darr, Argote, & Epple, 1995), and organization development (Head, Sorensen, Baum, & Preston, 1998). Previous studies focused on the correlation between organizations, within an organization or at individual level. Yet, scholars noted that the informal knowledge transfer approach on individual level within an organization would influence the effectiveness of organizational knowledge transfer (Kalid & Mahmood, 2010; Stadler & Fullagar, 2016). Meanwhile, the knowledge transfer approach had chosen by individual relay on their social network (Smith, 2009). The support or resource from management and the infrastructure of knowledge transfer mechanism would influence individual’s motivation (Europe Communities, 2007; Pike, May & Turner, 2007). From the perspective of Li and Zhu (2009), it could reach organizational knowledge innovation dependent on members’ knowledge transfer activities. Oserloh and Frey (2009) found that the intrinsic power of organization was the major force to drive individual’s Proactive Knowledge Transfer in practice. Thus, it would facilitate knowledge transfers activities in an organization via individual’s social network, management level support, and infrastructure. However, a gap emerged in discuss the relationships among knowledge transfers initiative, knowledge transfers Usefulness, knowledge management, and knowledge innovation, especially on the moderator effects of knowledge transfers initiative among knowledge management and knowledge innovation. Therefore, this study intended to construct a Knowledge Innovation Effective Model to explore the relationships among those factors mentioned above.