Knowledge Management Impact on Innovation Capabilities of a Firm: Mediating Role of Culture

Abstract

Now economies have been shifted from production oriented to knowledge based economies. Business environment is changing dramatically. There is a continuous technological changes which results in change in business processes. There is also a continuous change in customer needs. To manage the changing requirements organizations are continuously improving their technology and business processes by implementing knowledge management. Organizational culture can also support or obstruct the innovation process. The objective of the study was to explore the association between knowledge management and innovation considering the mediating influence of organization culture. The data was collected from services sector employees by using a questionnaire. Quantitative techniques were used to examine the data. Data was analyzed using SPSS. Results show a strong correlation among knowledge management and innovation capability of a firm. So knowledge management can improve the innovation within a firm. While Outcomes also prove that culture can affect the innovation within a firm. So the organizations interested to be innovative should promote a culture which supports innovation.