Increasing Firm's Innovation Performance through Formal and Informal Integrating Mechanisms

There is consensus in the knowledge management literature that knowledge integration mechanism is fundamental for firms to conduct innovation successfully. However, few studies examine the dimensions or characteristics of knowledge integration mechanism and how these mechanisms influence firms' innovation performance. This paper divide knowledge integration into two parts, namely formal knowledge integration and informal knowledge integration, and examines how formal knowledge integration and informal knowledge integration help enhance innovation performance in China's emerging economy. The result shows that formal knowledge integration and informal knowledge integration both are positively related to innovation performance. Theoretical and managerial implications are discussed.