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

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.