Impact of Internal Environmental Uncertainty and Knowledge Leveraging on Manufacturing Plant’s Financial Performance

Businesses are unclear about which levels of knowledge leveraging from suppliers and customers increase the financial performance in internal uncertain business environments. Therefore, this study first aims to explore how the leveraging of supplier and customer knowledge, which are driven by different motivations, impact the financial performance in modern days. Also, this study further investigates the impact of internal business environmental uncertainty dimensions of dynamism, munificence, and complexity on a business’ knowledge leveraging practices and financial performance. This study used empirical data from 513 plants, across 9 countries, and 21 industries and invokes Knowledge-Based View with environmental uncertainty literature. Leveraging of supplier and customer knowledge improve the financial performance and internal environmental uncertainty dimensions moderate those relationships.