The Effect of Market Knowledge Management Competence on Business Performance: A Dynamic Capabilities Perspective

Market knowledge has become the major asset of modern businesses and the key to retain their competitiveness. This research attempts to explore the impact of market knowledge management competence on performance via the “dynamic capabilities” perspective. 192 Taiwan companies were selected for the survey setting. The major findings are summarized as following: 1. this empirical result supports the relationships among dynamic capability, market knowledge management competence and business performance; namely, the model fit is acceptable. 2. Dynamic capability has a positive impact on market knowledge management competence. 3. Both Market knowledge management competence and Dynamic capability have positive influence on business performance. 4. We can find mediation effect from market knowledge management competence on the relationship between dynamic capability and financial performance. This research is valuable for assessing key organizational capabilities that directly impact an organization’s drive toward successful knowledge management.