Academic journal article Asian Social Science

The Impact of Knowledge Management on Organizational Innovation: An Empirical Study

Academic journal article Asian Social Science

The Impact of Knowledge Management on Organizational Innovation: An Empirical Study

Article excerpt

Abstract

The character of organizational innovation is considered significant for developing and improving the related products, procedures and marketplaces, for adding value as well as effectiveness over administrations. The innovation procedure is necessary regarding the activity of an association as the capability for innovation is important for attaining and sustaining competitive advantage. The absence of empirical investigations about the consequence of knowledge management on organizational innovation by organizational learning particularly over the developing countries exists in the related literature. The key objective of the current investigation is to evaluate the consequence of knowledge management on innovation directly and over organizational learning in Iranian automotive industry namely Iran Khodro Company. A total of 272 managers were chosen from systems and methods as the participants of the current study. The data were analysed using the Structural Equation Modelling (SEM). Results of the study revealed that there is an influence of knowledge management on organizational innovation in Iranian automotive industry. Results of the investigation showed that organizational learning has an important character as a mediator on the association between knowledge management and organizational innovation.

Keywords: knowledge management, organizational innovation, organizational learning

1. Introduction

Due to the fast improving technology and slowly globalizing marketplace, knowledge management (KM) is longer measured a suitable plan in this extremely competitive commercial contexts. Currently, businesses should have a competition regarding their survival in several continuous for improving and innovating the competitive advantages (García-Morales et al., 2006). In the other words, businesses should have innovation for obtaining chances for their survival reasons. Meanwhile, confrontation to innovation is probable to result in initiatives of declining performance. Globalization caused openness for the trade markets all over the world that carry business chances which have never been considered before. On the other hand, globalization likewise opens the door to tough competitions in several businesses. As Drucker (2007) believes , KM have been considered as the most important advantage in the knowledge-based culture. Consequently, KM are a considered as important constituent of commercial achievement, and actual policies for nonstop improving innovation and activity in business. Innovation is extremely related to the availability of knowledge and therefore the trouble shaped through the outburst of wealth and knowledge convenience should be identified and focused for certifying victorious innovation (Adams & Lamont, 2003; Cardinal et al., 2001). Knowledge refers to a strategic advantage which aids associations for maintaining their competitive capability in a turbulent context. The achievement of organizations thus is built upon administrations' and persons' speed in learning. Organizations striving in today's fast-changing market are confronted the need to have workers that know how to study and quickly retool and be ready for novel problems (Hurmelinna-Laukkanen et al., 2008).

According to the problem statement lack of studies implemented on these subjects is even more evident in the automobile industry background, in that there are merely a few investigations focused on the association between organizational learning (OL) and organizational innovation (OI). Furthermore, in agreement with (Liao & Wu, 2010), who recommended that few comprehensive investigations inspected concurrently the association among, KM and OL on several kinds of OI, e.g. technological versus administrative innovation, incremental versus radical innovation, and product versus process innovation over mediating effect of OL. The current investigation tries to examine the following research questions:

1) Does the KM relate to OI? …

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