Enhancing Family Business Performance Through Knowledge Management: The Role of Knowledge Dissemination and Creation in Open Innovation
DOI:
https://doi.org/10.1229/tecempresarialjournal.v20i2.599Keywords:
Family business, SMEs, Open innovation, Knowledge management, Developing countryAbstract
This study examines how knowledge management, specifically knowledge dissemination and creation, influences open innovation and enhances the performance of family businesses. The research used structural equation modeling (SEM) via partial least squares (PLS) analysis. Data were collected from 185 family-owned SMEs in Chile’s construction and industrial manufacturing sectors. The results show that knowledge dissemination and storage significantly impact non-technological innovations, fostering open innovation in family businesses. Knowledge creation and acquisition further enhance open innovation processes, integrating internal and external knowledge to boost innovation capacity. Additionally, to a lesser extent, flexible organizational structures and employee qualifications contribute to practical open innovation, improving the performance of family businesses. This research contributes to the literature by highlighting the role of knowledge dissemination and creation in driving open innovation and improving the performance of family businesses. It offers empirical evidence on how knowledge management can be strategically used to enhance innovation capabilities, providing new insights into the dynamics of open innovation within family-owned enterprises. The study is limited to family-owned SMEs within specific sectors in Chile, which may restrict the generalizability of the findings to other regions or industries. Expanding the research to other contexts could provide a broader understanding of the relationship between knowledge management and innovation in family businesses. A solid knowledge management framework is critical for family businesses to leverage open innovation. Effective knowledge dissemination and creation, supported by flexible organizational structures and qualified employees, enhance innovation and competitiveness. Family businesses with internal-external knowledge improve adaptability to market changes.
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