Knowledge Creation and Its Effects on NPD: A Survey of Malaysian Manufacturing Firms

Abstract

Several case studies from developing countries such as Malaysia have confirmed that a firm's knowledge creation competencies can significantly affect its new product development (NPD) and engineering performance. The generality of these findings however have yet to be tested among a number of firms. Therefore, this study aims to explore the effects of knowledge creation on NPD by surveying several Malaysian manufacturing firms. Using the SECI model, a survey was developed. A total of 150 responses were collected and analysed using reliability, correlations and multiple linear regression analysis. It was found that every variable had a significant correlation with NPD. Also, 44.8% of the variance in NPD was explained by knowledge creation. This study contributes to the understanding of knowledge creation and NPD of most Malaysian manufacturing firms. It contends that knowledge creation acts as a reinforcement and catalyst for NPD success. The outcome of reinforced NPD in Malaysian manufacturing firms may lead to the eventual improvement of the country's overall economy and knowledge, towards the primary goal to achieve the status of a high-income nation.