Customer's role in knowledge management and in the innovation process: effects on innovation capacity and marketing results

Scholars have acknowledged customer knowledge management (CKM) as a key strategic resource for improving innovation and supporting long-term customer relationship management. This study provides a deeper understanding of the internal antecedents of business innovation capacity overcoming previous approaches. A model that had not previously been tested was used to analyse the role of customer collaboration and CKM-measured as a second-order construct - in innovation processes and marketing results. To test the model, structural equation modelling (partial least squares) was applied to a random sample of 210 Spanish companies. Results confirm that CKM and customer collaboration are antecedents of innovation capacity and marketing results. Furthermore, the effect of CKM is greater than the effect of customer collaboration. This paper provides a basis for managers to encourage innovation in their companies and explains how managers can improve marketing results.