How does knowledge inertia affect firms product innovation?

This study identifies three dimensions of knowledge inertia (procedural, learning, and experience) and their relationships with product innovation. Drawing from a survey of Chinese high-tech firms, the study uses multiple hierarchical regressions to explore the mediating effect of knowledge-transfer behavior on the relationship between knowledge inertia and product innovation, as well as the moderating effect of knowledge potential on the relationships between knowledge inertia and each of knowledge-transfer behavior, knowledge inertia, and product innovation. The results show that knowledge inertia has a positive effect on product innovation, and knowledge-transfer behavior correlates positively with product innovation. Both dimensions of knowledge-transfer behavior (motivation and capacity) mediate the relationship between knowledge inertia and product innovation. In addition, knowledge potential moderates the relationship between procedural knowledge and each of product innovation, knowledge inertia, and knowledge-transfer motivation. Overall, this research contributes to the theory and research of knowledge management by exploring the role of knowledge inertia as well as identifying the impact of knowledge-transfer behavior and potential on successful product innovation.