Knowledge management process arrangements and their impact on innovation

Abstract

This study investigates the types of knowledge management process (KMP) arrangements firms adopt and how these arrangements relate to innovation. Data from 341 Brazilian and Portuguese information technology companies were analysed using a sequence of statistical treatments (factor analysis, cluster analysis and analysis of variance). The study adopts a perspective other than those of linear models to investigate the KMP arrangements applied by firms and their relation to innovation. The findings suggest that (1) firms adopt balanced KMP arrangements; (2) assuring a certain degree of knowledge application, firms can reach comparable levels of innovation by emphasizing either sharing or storage processes; knowledge sharing processes can compensate for lower levels of other knowledge processes and sustain better levels of innovation; and (3) investments in KMP tend to reach a maximum effect, from which innovation decelerates. The study focuses on the relationship between the KMPs and innovation in the information technology sector, thereby limiting generalization to other sectors. As a practical implication, knowledge managers are provided with information emphasizing the importance of controlling the investments and the organization of KMP arrangements aimed at innovation.