Effects of trading partner relationships and knowledge complementarity on innovation performance

PurposeThe purpose of this paper is to examine the effect of environmental characteristics, business partnership relationship, knowledge complementarity, organizational characteristics on knowledge management practices and innovation performance.Design/methodology/approachThe research used primary data, i.e. data obtained directly from the distribution of questionnaires to respondents, namely, the company’s managers/leaders/directors in the companies that became the research sample. Data were collected by sending questionnaires either by mail or email to the respondents. To examine the effect of environmental characteristics, business partnership relationship, knowledge complementarity and organizational characteristics on knowledge management practices and innovation performance.FindingsEnvironmental characteristics, business partnership relationship, knowledge complementarity and organizational characteristics partially have a significant effect on knowledge management practices. Environmental characteristics and business partnership relationship partially have a significant effect on innovation performance, while knowledge complementarity and organizational characteristics have no significant effect. For other constructs, knowledge management practices are able to be a moderator variable, which can relate these constructs with innovation performance.Originality/valueThe research using the diffusion of innovation paradigm, the combination of market-based and knowledge-based paradigms is expected to fill the previous research gap and become the first uniqueness and originality, as well as characteristic of this research. The second originality is this research examines the role of the knowledge management practice variable as the moderator variable. Then, the third originality is this research investigates the relationship between business partner relationship and innovation performance. These three originalities are still rarely studied in previous studies, so this research will further complement, expand the study, especially in the knowledge management, innovation performance area.