Management Innovation, Digital Orientation, and External Knowledge Search

Abstract

We investigate how digital management innovation influences external knowledge search so as to survive the digital environment. Through 201 firms that apply big data technology in China, we find that management innovation positively contributes to both science-oriented and market-oriented external knowledge search. Specifically, digital orientation accentuates the positive relationship between management innovation and both external knowledge searches. The theoretical contribution extends the related research of knowledge management theory, integrating the institutional perspective and rational perspective of management innovation for explaining how an organization establishes new standardized and institutional routines with digital tools, ensuring efficient external knowledge search. Practical contributions indicate that firms should attach importance to management innovation for establishing governance systems that are beneficial to searching outside knowledge and keeping competitive advantage.