A Causal Decision Making Model for Knowledge Management Capabilities to Innovation Performance in Taiwan’s High-Tech Industry

R&D and innovation is the source of technology companies’ profit. If companies cannot be smoothly implemented technological innovation and R&D investments, then they can not strengthen their competitiveness. In the light of dynamic capabilities and absorptive capacities, we need an effective multi-criteria decision-making (MCDM) analysis tools to assess the impact of organizational innovation and performance factors so that we can promote organizational innovation performance requires. This study used multiple criteria decision analysis methodDEMATEL, how influence as innovation performance on knowledge management capabilities of high-tech industry. Result of this study, enterprises can access external knowledge and make amendments to the operating principle effectively and immediately, when enhanced absorptive capabilities. Moreover, enhancing absorption capabilities will lead the improvement of dynamic capabilities to adapt to the rapidly changing competitive environment.