Examining the effect of knowledge integration capability on technological innovation and strategic performance:a case of pharmaceutical firms in Iran

This study addresses two objectives. First, it examines the effect of knowledge integration capability (KIC) on technological innovation capabilities (TIC), namely process innovation and product innovation, and firm’s strategic performance (SP). Second to investigate the mediating role of product innovation capability in process innovation capability- SP relationship. In terms of objective, the current research is applied. This study was conducted using descriptive – correlation methodology. Simple random sampling (SRS) method was employed to the selection of the samples. The study population consisted of all active pharmaceutical firms in Islamic Republic of Iran. The sample size was 86 pharmaceutical firms. Correlation analysis and Structural Equation Modeling (SEM) technique were employed to test of the research model and hypotheses. Data analysis showed that knowledge integration capability has a direct and significant effect on technological innovation capabilities and firm’s strategic performance. Finding also revealed that product innovation capability significantly affects the relationship between process innovation capability and firm’s strategic performance.