**3. Methods**

### **3.1 Sample profile and data collection**

The data to identify the relationships between variables was obtained through a questionnaire designed in Qualtrics, a software which allows participants to answer the questionnaire online. The sample comprised 211 collaborators from Mexican and foreign firms operating in Mexico. **Table 1** presents the profile of the respondents. An e-mail was sent to invite organizations to participate in the study, and only 35 firms agreed to participate from May to August 2017.

**23**

**3.2 Measures**

*Knowledge Generation to Foster Innovation in Mexico: How Human Capital Matters*

Collecting potentially different opinions of various members of each firm concerning the phenomenon under study was especially interesting because individual skills are key variables. In each company, the distribution of questionnaires was carried out to employees at multiple hierarchical levels and functional departments. Knowledge generation is not exclusive to a specific organizational level or department; the occurrence of a key informant bias should be avoided by using a multiple informant approach. The questionnaire was designed in Qualtrics to facilitate its completion. An e-mail was sent to those collaborators who were interested in participating. The final sample includes 211 collaborators, implying between 6 and 7 questionnaires per firm. **Table 1** lists the respondent and company characteristics, including firm size, sector, and collaborator's position. A total of 58% of participant firms are Mexican, and 42% are foreign firms operating in Mexico. 49.1% of the participant firms operate in the manufacturing sector, and 51.9% are service firms. Fifteen percent of the firms are small, 11.1% are medium sized, and 73.9% are large. Respondents are mostly in leadership positions

For the present study, a questionnaire was designed making use of constructs identified in previous studies related to knowledge generation: external acquisition and internal creation, organizational factors, and individual skills [29]. These constructs were operationalized with different dimensions adapted from those studies and modified for use in the present research. All constructs and dimensions were measured using multiple items and a five-point, Likert scale (ranging from 1 = strongly disagree to 5 = strongly agree). **Table 2** shows a list that includes each construct together with its related dimension and items as well as the studies from

*DOI: http://dx.doi.org/10.5772/intechopen.86216*

Firm Nationality

Sector

Size

**Table 1.**

Participants Position

*Profile of the respondents.*

**Demographic characteristics (%)**

Foreign 42 Mexican 58

Manufacturing 49.1 Service 51.9

Small (0–49 employees) 15.0 Medium (50–249 employees) 11.1 Large (>249 employees) 73.9

General manager 21.4 Department director 49.8 Project leader 28.8

or at the top level in their companies (71.2%).

which the constructs were derived.

*Knowledge Generation to Foster Innovation in Mexico: How Human Capital Matters DOI: http://dx.doi.org/10.5772/intechopen.86216*


#### **Table 1.**

*Current Issues in Knowledge Management*

these arguments, Hypothesis 3 is proposed:

learn from one another seems to be implicit [28].

inside the firm. This leads to the final hypothesis.

only 35 firms agreed to participate from May to August 2017.

**3.1 Sample profile and data collection**

knowledge creation.

knowledge creation.

**3. Methods**

learn are the organizational elements that support this process for manufacturing firms. In these types of organizations, the top management team is aware of how knowledge generation is relevant, providing time and space to seek new ways of doing things and to increase employees' knowledge through learning in action. A learning-oriented culture, along with other factors, promotes receptivity to new

In terms of knowledge exchange, the interaction among organizational members facilitates dissemination of explicit and tacit knowledge. When the frequency of knowledge exchange within an organization is high, the organizational members have more opportunities to access and acquire knowledge that is different from their own. This will trigger more novel ideas [25]. Moreover, knowledge exchange, as has been discussed, can induce organizational members to combine their existing knowledge with acquired knowledge or recombine their existing knowledge in better ways. For instance, the results of an exploratory study in Mexican firms show that the internal creation of knowledge occurs primarily in meetings that occur within the organization followed by employee self-directed learning [27]. Based on

Hypothesis 3: Organizational factors such as organizational culture, management style, commitment to learn, and open-mindedness positively impact internal

To recognize and evaluate the organization's relevant and new knowledge, employees need to hold some prior knowledge base [24]. This expertise and knowhow enables employees to recognize the value of new knowledge, and it is helpful to communicate and be cooperative in sharing new knowledge [7]. Social interaction develops the ability for people to exchange and acquire knowledge that is tacit in nature. In the notion of exchange, the assumption that individuals hold different levels and types of knowledge and will engage in teamwork and communication to

Moreover, the dynamic environment in which organizations work currently provides motivation for employees to create new knowledge and the opportunity to learn. Employees feel they can learn from the work they perform and the experience gained in applying their knowledge. The literature shows that employee motivation is essential to create new knowledge and the opportunity to learn about issues of interest motivates employees to seek new ways of doing things, leading to innovation [28]. In addition to that, professional qualifications allow exploration and exploitation of new ways of doing things, and social skills promote cooperation and social interaction among employees, influencing the knowledge creation process

Hypothesis 4: Individual skills such as professional skills, social skills, personal

The data to identify the relationships between variables was obtained through a questionnaire designed in Qualtrics, a software which allows participants to answer the questionnaire online. The sample comprised 211 collaborators from Mexican and foreign firms operating in Mexico. **Table 1** presents the profile of the respondents. An e-mail was sent to invite organizations to participate in the study, and

motivation, and the opportunity to learn have a positive influence on internal

ideas and innovation as part of an organization's culture [26].

**22**

*Profile of the respondents.*

Collecting potentially different opinions of various members of each firm concerning the phenomenon under study was especially interesting because individual skills are key variables. In each company, the distribution of questionnaires was carried out to employees at multiple hierarchical levels and functional departments. Knowledge generation is not exclusive to a specific organizational level or department; the occurrence of a key informant bias should be avoided by using a multiple informant approach. The questionnaire was designed in Qualtrics to facilitate its completion. An e-mail was sent to those collaborators who were interested in participating. The final sample includes 211 collaborators, implying between 6 and 7 questionnaires per firm. **Table 1** lists the respondent and company characteristics, including firm size, sector, and collaborator's position.

A total of 58% of participant firms are Mexican, and 42% are foreign firms operating in Mexico. 49.1% of the participant firms operate in the manufacturing sector, and 51.9% are service firms. Fifteen percent of the firms are small, 11.1% are medium sized, and 73.9% are large. Respondents are mostly in leadership positions or at the top level in their companies (71.2%).

#### **3.2 Measures**

For the present study, a questionnaire was designed making use of constructs identified in previous studies related to knowledge generation: external acquisition and internal creation, organizational factors, and individual skills [29]. These constructs were operationalized with different dimensions adapted from those studies and modified for use in the present research. All constructs and dimensions were measured using multiple items and a five-point, Likert scale (ranging from 1 = strongly disagree to 5 = strongly agree). **Table 2** shows a list that includes each construct together with its related dimension and items as well as the studies from which the constructs were derived.


**25**

**Table 2.**

*Constructs and items.*

**4. Results and discussion**

To test the hypotheses, partial least squares (PLS) analysis using the SmartPLS

3.0 was performed [30, 31]. The PLS is suitable for early-stage research model construction allowing the interaction between the theory and the empirical data and the small sample condition [32]. In addition, it allows us to test the causal relationships between constructs that feature multiple measurement items [32]. The authors will build a two-stage model to test the measurement model to perform construct, discriminant, and convergent validity and confirm the structural model

to test the hypotheses through the significance of the path coefficients.

*Knowledge Generation to Foster Innovation in Mexico: How Human Capital Matters*

**Construct Dimension/variables Indicators/items**

Professional skills Collaborators:

PS1—Possess excellent market knowledge PS2—Possess excellent company knowledge (e.g., product range) PS3—Possess excellent knowledge about our strategic goals (e.g., business

PS4—Possess excellent skills in analyzing information gained from single customers with regard to its utility for our company PS5—Possess excellent skills in evaluating information gained from single customers with regard to its utility

objectives)

for our company

Social skills SS1—Is fully able to put themselves in

PS6—Possess excellent skills in preparing and documenting information gained from single customers with regard to future purpose

the position of other people SS2—Is fully able to understand the

SS3—Is easily able to recognize and understand the demands and needs of

SS4—Is able to recognize conflicts on

suggestions are taken into account PM2—The activities carried out in the company allow employees to seek new

PM3—Employees like what they do

the company provide an opportunity for increasing employees' knowledge LO2—The activities carried out within the company allow employees to learn

LO3—The activities carried out within the company allow employees to learn

behavior of other people

ways of doing things

how to use new tools

new ways of doing things

other people

time

Learning opportunity LO1—The activities carried out within

Personal motivation PM1—Employees' opinions or

*DOI: http://dx.doi.org/10.5772/intechopen.86216*

Knowledge generation individual skills [7, 23]


**Table 2.** *Constructs and items.*

*Current Issues in Knowledge Management*

External knowledge acquisition [23]

Internal knowledge creation [23]

Knowledge generation organizational factors

[7, 23]

**Construct Dimension/variables Indicators/items**

activities

activities

External knowledge acquisition

Internal knowledge creation

KG1—Customer experience is important for the improvement of our activities KG2—It has collaborative agreements with other companies to offer better

KG3—Information systems are often acquired to support the activities and

KG4—Attendance at refresher courses is encouraged among employees

KG5—It has a library and/or literature to support the development and execution

easy to approach the senior management as well as the rest of the members of the

OR2—The senior management can be easily approached to give them points of view on an activity and/or process OR3—An atmosphere of frankness and trust prevails in the organization.

KG6—Our organization encourages employee self-directed learning KG7—Attendance at refresher courses is encouraged among employees KG8—Meetings are held to solve problems or to seek solutions or improvements to an ongoing activity or

services to our customers

business processes

of priority activities

process

company

knowledge generation MS2—Facilitation of knowledge generation by holding meetings that foment the creation of new ways of

MS3—Encouragement of the

our competitive advantage

as key to improvement

organizational survival

open-mindedness

development of employees' initiative and

organization's ability to learn is the key to

CL2—The basic values include learning

critically on the shared assumptions we have made about the way we do business OM2—We place a high value on

OM3—Managers encourage employees

to think "outside of the box" OM4—Original ideas are highly valued

CL3—The sense around here is that employee learning is an investment, not

CL4—Learning is seen as a key commodity necessary to guarantee

doing things

creativity Commitment to learning CL1—Managers basically agree that our

an expense

Open-mindedness OM1—We are not afraid to reflect

Organizational culture OR1—The work environment makes it

Management style MS1—Awareness of the relevance of

**24**
