The use of management information in process innovation: effects of knowledge conversion by socialization

Abstract

The article analyzes the effects of using management information and knowledge conversion by socialization in process innovation. A survey was conducted with 133 managers of Brazilian firms that received tax subsidies to develop technological innovation. For data analysis, structural equation modeling was used. Results show that the use of management information to score keeping and focusing organizational attention triggered higher levels of process innovation. In contrast, improving understanding and improving organizational learning did not show statistical significance, suggesting that these do not have the potential to influence directly process innovation. It was also found that managers’ skill to convert knowledge by socialization precedes process innovation. Furthermore, mediating effect of knowledge conversion by socialization between the use of management information and process innovation was statistically significant only in improving organizational learning. The finding that the use of management information for score keeping, focusing organizational attention directly and improving organizational learning indirectly reflects in higher levels of innovation can be used as part of the strategy and support organization’s management in process innovation. Furthermore, the organization can emphasize on knowledge conversion by socialization, both explicit and tacit knowledge, to leverage process innovation. The study addresses recent calls to understand the potential of managers’ skills to convert knowledge through socialization. Evidence shows that, by socializing knowledge, managers expand and disseminate the organization’s tacit knowledge, which can stimulate process innovation. It also adds to the debate about which uses of information managers should emphasize to promote process innovation.