Knowledge Creation in Small Manufacturing Firms During Product Innovation: An Epirical Analysis of Cause-effect Relationships Among its Determinants

This paper presents the findings of a study aimed at investigating the influence that some factors describing the cognitive, social and management environment during technical problem-solving have on the generation of new knowledge in small manufacturing firms. The study remains exploratory in its nature and a starting point for further research on the subject. Indeed, the insights obtained so far from the results, even though appearing quite stimulating and interesting for a reflection, do not fully disclose all the aspects of the process leading to knowledge creation in small firms. In a previous study we examined the direct impact of these factors upon knowledge generation. In this paper we examine their mediated impact. Using path analysis we test an 'a priori' theoretical model of influence of some constructs on knowledge generation. We show that two cognitive factors - context uncertainty and ambiguity - affect the amount and quality of knowledge generated during technical problem-solving through the mediation of practices and behaviour adopted in problem-solving. Ninety one cases of technical problem-solving, occurring during product innovation within 35 small firms, were studied.