ROLE OF KNOWLEDGE MANAGEMENT WITHIN INNOVATION AND PERFORMANCE

Abstract

This study seeks to advance understanding and to provide empirical evidence of relationship of knowledge management components (knowledge acquisition, knowledge transfer, and knowledge use), business innovation and organizational performance. In this research are analysed at theoretical and empirical level the knowledge management components: acquisition, transfer and use of knowledge, and its importance for business innovation and organizational performance. We propose a model that includes both direct effects and indirect effects. The predicted effects are tested with data collected of 201 Spanish firms of high-tech services and high-tech manufacturing; the paper performs an empirical analysis using structural equation modelling. Results of this investigation confirm that knowledge management components have positive direct and indirect influences on the business innovation and therefore improve the companys performance. K