Knowledge and Innovation Management: Developing Dynamic Capabilities to Capture Value from Innovation

This qualitative research examined the links between business models, business strategy and innovation and investigated the extent to which knowledge and innovation management (KIM) contributes to the processes of value creation, value networks and value capture across six organizations characterized by successful innovation performance and strong KIM practices. The development of KIM as a dynamic capability increases the capacity of an organization to add value to the existing business model through innovation, and also provides opportunities for superior performance. The analysis of the data revealed the main areas where KIM was well established as a dynamic capability within these organizations, as well as gaps and challenges, particularly in terms of delivery of both innovation performance and business success. Findings from this exploratory research also suggest that the development of dynamic capabilities in KIM are dependent on robust measurement practices, and that feedback and reinvestment of value captured are essential to sustained competitive advantage.