Knowledge from customer, for customer or about customer: which triggers innovation capability the most?

Purpose: This paper examines the influence of three dimensions of customer knowledge management – knowledge from customer, knowledge for customer and knowledge about customer – on innovation capabilities (speed and quality) and new service market performance. Design/methodology/approach: The model links three dimensions of customer knowledge management to two dimensions of innovation capabilities. Further, the model links two dimensions of innovation capabilities to new service market performance. Analysis was conducted through structural equation modelling using SmartPLS software, using data from 253 managers representing 26 banks in Bangladesh. Findings: The findings of this study show that knowledge from customer and knowledge for customer are the most influential predictors of new service market performance. Of the three dimensions of customer knowledge management, knowledge from customer turns out to be the strongest predictor of innovation quality and speed. Innovation quality has a greater impact on new service market performance than innovation speed. Innovation capability (quality and speed) plays a mediating role in this study. Practical implications: Managing knowledge from, for and about customer should be systematically considered as a synergy approach to firms’ processes and activities to co-create value with customers. In particular, managers should put more emphasis on knowledge from and for customer to enhance innovation capacity and achieve success in the development of a new service. Originality/value: This paper empirically supports the significant influence of knowledge from, for and about customer on innovation capabilities (quality and speed) and new service market performance. While the results provide guidance for researchers and practitioners, it also adds value to innovation-related research.