The Linkage Between Knowledge Acquisition, Learning Flexibility, and Product Innovation in Small and Medium Enterprises

Abstract

Knowledge acquisition has been a significant point for research and business practice. Noting that knowledge acquisition (KA) has been identified as an important practice for intellectual development and innovation, this study seeks to establish the relationship between KA through Industry Knowledge and knowledge from prior experience on product innovation (PI). This study, therefore, gives a hypothetical structure to examining knowledge acquisition and product innovation of small and medium scale enterprises; according to the framework, knowledge acquisition interacts with product innovation in the context of a knowledge-based economy. Using Survey data was collected from 500 manufacturing SMEs in the Eastern region of Ghana, the result showed that both knowledge acquisition (Prior Experience and Industry Knowledge) were found to have a statistically significant effect on SMEs' product innovation.  The results also revealed that Learning Flexibility partially mediates the relationship between Prior Experience and SME product innovation.