Organizational factors to support knowledge management and innovation

TLDR: Evidence of a moderating effect of knowledge-centered culture, knowledge-oriented leadership and knowledge- centered HR practices in the relationship between knowledge exploration and exploitation practices and innovation outcomes of companies is provided.

Abstract: Purpose – The purpose of this paper is to analyze how organizational factors such as cultural values, leadership and human resource (HR) practices influence knowledge exploration and exploitation practices and innovation via an empirical study. Design/methodology/approach – From the knowledge-based view of the firm, six hypotheses were established and statistically tested in a sample of 111 Spanish companies belonging to innovative industries. Survey methodology was used with the aim of gathering data regarding knowledge management (KM) practices and certain, related organizational aspects in firms. Findings – This paper provides evidence of a moderating effect of knowledge-centered culture, knowledge-oriented leadership and knowledge-centered HR practices in the relationship between knowledge exploration and exploitation practices and innovation outcomes of companies. In line with previous literature, it is suggested that although KM practices are important on their own for innovation purposes, when certain enablers – organizational factors to overcome human barriers to KM – are properly established, the innovation capacity of the firm can be more successfully exploited. Research limitations/implications – The research is limited to high rate innovation industries. Future studies will include other industries and a more diverse sample of firms. Practical implications – The results of this study suggest that managers should place attention on knowledge exploration and exploitation practices along with several organizational enablers in order to achieve high levels of innovation results for the company. Originality/value – This paper provides new empirical evidence on the relationships between KM, organizational elements such as culture, leadership, HR practices, and innovation in a large sample of firms. To date, the empirical research of these relations has been mainly limited to descriptive case studies and there is thus a lack of empirical evidence with large samples of firms.