| This dissertation explores two issues relating to how knowledge flow management within a subsidiary can help to improve its product innovation performance (i.e., market success of new products). First, a conceptual general framework of product innovation performance from the knowledge management perspective is proposed and further elaborated through a snap-shot model and a dynamic model. Second, an empirical examination is performed on one specific link in the general framework documenting the impact of a subsidiary's product strategic focus on certain new product development project types on its technology, competition and customer knowledge flow use, and subsequent product innovation performance. This dissertation argues that product innovation performance may result from managing the knowledge-flow-involved system. Moreover, different product development strategic focuses may exert significant impact on how a subsidiary may utilize its knowledge flows. Therefore, a subsidiary that intentionally manages its knowledge flow use according to its product development strategic focuses may achieve better performance in its product development. To consider this largely under-explored area in a geographic region where business expansion and new product development is strong, this dissertation uses a sample from subsidiaries of multinational companies operating in China. The empirical test shows preliminary evidence for the significance of proactively managing knowledge flows in conjunction with its strategic focuses in a subsidiary. |
