Comparison of competing models and multi-group analysis of organizational culture, knowledge transfer, and innovation capability: an empirical study of the Taiwan semiconductor industry

This study proposes a theoretical model to examine the relationships between organizational culture (OC), knowledge transfer (KT), and innovation capability (CI) in Taiwan’s semiconductor industry. Structural equation modelling is employed to discuss the degree of influence on each construct. In order to recognize what the better model and whether the model will be moderated for different industry chain positions (upstream, midstream, and downstream), this study uses competing models and multi‐group analysis. A total of 433 valid responses were collected from 10 Taiwan semiconductor firms’ R&D departments. Through the competing models, we find that supportive culture is better than bureaucratic and innovative culture. Findings also reveal that managers should shape a supportive culture and encourage KT to promote CI in the semiconductor industry supply chain. KT is a partial mediator between OC and CI. In addition, after multi‐group analysis, the results show that culture has significantly different relationships with KT and CI.