ABSTRACT

The previous studies have investigated the effect of social capital on innovation performance. However, the previous studies investigating the relationship between social capital and innovation performance have assumed a black box in the linkage. According to the knowledge based view, firms with inter-dependent relationship can make innovation through sharing processes of knowledge. In other words, social capital as intangible resource results in knowledge management activities which can increase innovation performance. And increasing innovation can make relationship satisfaction promoting relationship investment gradually. Therefore, research hypotheses are made from social capital to relationship investment. From the empirical results, except for the effect of knowledge sharing on both product innovation and relationship satisfaction, almost all hypotheses are reported to be significant. And product innovation performance positively affects relationship satisfaction, and relationship investment is positively affected by relationship satisfaction. From this study, we can know the importance of knowledge management activities in strategic management view.

KEYWORD

Social Capital, Knowledge Management Activity, Innovation, Relationship Satisfaction, Relationship Investment

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