Developing a customer knowledge-based measure for innovation management

Purpose – The purpose of this paper is to introduce the concept of customer knowledge-enabled innovation (CKEI) and suggests a scale for its eventual measurement. The process of the scale development is presented in detail following the Churchill (1979) paradigm. CKEI is defined as the capacity of the organization to introduce new products and services on the basis of effective management of customer knowledge. It reflects the degree to which the company is endowed with the expertise of managing properly customer knowledge in order to enhance innovation. Design/methodology/approach – The CKEI raw scale is mainly composed of 57 items. In an effort to purify the scale measurement, test and validate its psychometric specificities, two surveys were administrated among two independent samples. Respondents were new product managers or marketing managers. One manager per firm was interviewed. The convenience sampling method was applied. Findings – The CKEI scale has been intended to be uni-dimensional. It encompasses three main facets: the integrative capacity of the firm, the structural capacity and the internal management capacity. The developed scale is valid and highly reliable (composite reliability=0.90; variance extracted=0.5). After exploratory factor analysis and confirmatory factor analysis, a pool of ten items was retained for the eventual measurement of the CKEI scale. Research limitations/implications – CKEI has been tested in a Tunisian context; continued refinement of the proposed CKEI scale is, undoubtedly, possible and even desired, based on further research in other business environments. Such refinements and modifications could necessitate the inclusion of new items, or the deletion of original ones. In some cases, the hypothesized factor structure may need modifications. To keep abreast with the ever-changing business environment, the paper strongly urged to incorporate these relevant aspects in the scale into the future research, so that a valid measure of CKEI can be ensured on an ongoing basis. Practical implications – The scale is offered to provide managers with a practical tool for the evaluation of their forces and weaknesses in managing customer knowledge in organizations. It is considered as a barometer allowing them to adjust and to modify continually their innovation strategies focusing on the intellectual capital management. Originality/value – CKEI is a new concept that is introduced in this research as a knowledge-based capability which helps companies to sustain competitive advantage. The relevance of the CKEI is that it is considered as a dynamic capability integrating both innovation and customer knowledge management theories.