Linking Knowledge Management and Innovation Culture for Business Performance Improvement

Abstract

To gain insights on how the linkages between knowledge management and innovation culture evolve in an organization and that facilitate in making an impact on the business performance, and propose a conceptual model that captures the relationship between knowledge management, innovation culture, and business performance. A comprehensive review of previous literature and document analysis using secondary data method and reference of books, journals, industry reports, statistics, and different surveys undertaken for the purpose of the study to gain insights into the evolution of the linkages between knowledge management and innovation culture and its impact on business performance. The study clearly establishes that once the linkages between knowledge management and innovation culture evolve in organizations, then they have the potential to achieve breakthrough performances. It is also evident from the study of one of the organizations where the linkages evolved and matured, it resulted in launching of a new line of business, an exponential expansion in product offerings, and higher profitability. Based on the initial findings the extended literature review further reinforces that such linkages also exist in IT & Non IT organizations as well. The conceptual paper evolved from the researchers insights and experiences in the industry though initially the idea was unclear, however as the study progressed more insights obtained that resulted in proposing a conceptual model linking the KM, innovation culture, and business performance. Similar studies using the proposed model once performed on other organizations will provide further insights and enable to overcome implementation challenges. The literature review points out that organizations tend to view KM initiatives in isolation, and as a result, failures are more and tend to be costly for organizations. A strong business case proposed to forge linkages between KM and innovation culture, which has enormous potential to create an impact on the business performance in organizations. The leadership of the organization can also expect more success rate with the implementation of such a strategic initiative. Surprisingly fewer research streams are available in the literature that investigates and integrates KM and innovation culture though individually each of the aspects discussed at length in the literature, and its implication on the performance of the organization well understood. The proposed model will enable the organizations to tread a journey of integrating KM & Innovation culture, and may ultimately lead to more innovations and better business performance in the organizations.

Keywords: Knowledge Management, Innovation Culture, Innovation, Business Performance

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