The Effect of Knowledge Integration, Knowledge Innovation on New Product Performance: An Empirical Study in Saudi Arabia Firms

Abstract

The objective of this study is to investigate the effect of knowledge integration, knowledge innovation on new product performance in Saudi Aria firms. In this study, two hypotheses are developed: the relationship between knowledge integration and knowledge innovation; and the relationship between knowledge innovation and new product performance. Federation of the Gulf Cooperation Council (GCC) directory handbook was used as sampling frame for sample selection. A total of 500 firms from food and beverage, chemical and pharmaceutical, automotive, and electronic and telecommunication industry were chosen randomly. The questionnaires were posted along with a cover letter explaining the purpose of study and stressing the confidentiality of responses; a smaller envelop for reply purpose also attached. The majority of manufacturing companies are located in Riyadh, Dammam, and Jeddah as major industrial regions in Saudi Arabia. The results of this study suggest that the knowledge integration indicators have significant contributed in developing knowledge innovation. In fact, utilizing knowledge innovation, firms introduced new ideas, apply knowledge innovation in order achieve competitive advantage have significant effect in increasing the new product performance. In this context, firms should pay attention on those significant indicators in order to achieve competitive advantage in the global market.