A path-dependent model of knowledge creation in small manufacturing firms

Summary form only given. This paper presents the findings of a study aimed at investigating the influence that some factors, describing the cognitive, social, and management environment during technical problem-solving, have on the generation of new knowledge in small manufacturing firms. In a previous study we have examined the direct impact of these factors upon knowledge generation. Here we examine the mediated impact of factors upon knowledge generation. Using path analysis we examine an a priori theoretical model of influences of some constructs on knowledge generation. Ninety-one cases of technical problem solving that occurred during product innovation within 35 small firms were studied. Two key findings arise from our study, each adding substantially to the understanding of how knowledge is created in small firms during technical problem-solving and to the impact that some management practices and social behaviors adopted in the organization have on the amount and quality of knowledge created. First, the hypothesized model explains the logical process of knowledge creation during innovation in small firms moderately well, supporting what literature says about the generation of knowledge within organizations. Our second key finding is that the hypothesized model puts emphasis on the subtle relationship existing among uncertainty, ambiguity and the adoption of practices and behaviors aimed at reducing them.