Title: Constructing influential customer relationships in website innovation: social embeddedness and knowledge management capability considerations

Authors: Ming-Way Lee, Chin-Yu Tsai

Addresses: Department of Business Administration, National Taipei University, 5F, No.5, Alley 13, Lane 512, Minzu E. Rd., Jhongshan District, Taipei City 104, Taiwan. ' Department of Business Administration, National Taipei University, 1F, No.3, Lane 51, Wancing St., Wunshan District, Taipei City 116, Taiwan

Abstract: This study examines how most customer relationships affect knowledge management and innovation performance in the context of internet marketing in Taiwan. This investigation assumes that the website is a centre of information flow and that visiting customers are network members. And also uses the concept of |social embeddedness| frequently used in network study and discusses the effects of structure and relationship on innovation performance. Empirical findings from a sample of 212 websites support this view. The analytical results show that a website with abundant social embeddedness will have higher knowledge management capability and innovation performance than a website that lacks social embeddedness. Furthermore, if a network structure has higher centrality, equivalence and density, it will successfully transfer more customer knowledge. Such a website can provide collaborative learning and more creative information and service, meet customer needs and satisfy customers.

Keywords: social embeddedness; knowledge management capability; innovation performance; collaborative learning; customer relationships; website innovation; internet marketing; Taiwan; information flow; knowledge transfer; customer demand; customer satisfaction.

DOI: 10.1504/IJIL.2007.011477

International Journal of Innovation and Learning, 2007 Vol.4 No.1, pp.92 - 102

Published online: 30 Nov 2006 *

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