The relationship between innovation and knowledge strategies: its impact on business performance

This paper studies, from a Knowledge-Based View (KBV) of the firm, the relationship between innovation strategy, Knowledge Strategy (KS) and firm performance. After collecting data from a sample of Spanish industrial companies, an empirical study was carried out. First, we found that innovation strategy has a positive, significant impact on firm performance. Second, different groups of firms are set up according to a particular KS adopted. Four types of knowledge strategies are established: proactive, moderate, passive and inconsistent. Third, a multiple regression analysis with interaction effects was applied and we found that KS moderates the relationship between innovation strategy and firm performance. More important still, we detected that this effect is more accurate when some dimensions of innovation strategy and some specific types of knowledge strategies interact with each other.