A study conducted by Hasgall and Shoham (2008) found that an organization needs a capability to update its organizational knowledge from its external turbulent environmental renewal of organizational asset stock enables an organization to deliver a constant stream of new and innovative products and services to customers.An empirical study on this model is not conducted yet in a comprehensive way (Hou and Chien, 2010). Market orientation has become the major asset of modern businesses and the key to retain their competitiveness. To compete effectively, organizations must leverage their existing knowledge and create new knowledge that favourably positions them in their chosen markets. In order to accomplish this, organizations must develop an organizational capability which refers to the ability to use prior knowledge to recognize the value of new information, assimilates it, and apply it to create new knowledge and capabilities (Hou and Chien, 2010). The process of assimilation and integration of prior knowledge and new knowledge is referred to reconciliation or analysis (Takeuchi and Nonaka, 2004). As a result, new knowledge can be created (Nonaka, 1994). The new created knowledge will be transformed to become an organizational knowledge in order to renew the existing knowledge using the technological advancement (Takeuchi and Nonaka, 2004).