Investigating the Key Factors Influencing the Process Innovation Capability in Organizations: Evidence from the Republic of Serbia

Abstract

Research exploring quality management, knowledge management, and innovations in organizations has received significant attention from academics worldwide, providing different insights. Innovation has been widely seen as an essential organizational performance driver. This study aims to accentuate the importance of quality management and knowledge management and their direct, mediating, and total effect on an organization’s process innovations. The double-reflective second-order construct model was analyzed following the most recent methodology guidelines. Eventually, partial least squares structural equation modeling (PLS-SEM) was used to test the research hypotheses and investigate the relations between the latent factors. The results from 264 Serbian companies that implemented ISO 9001 standard point to quality management’s direct effect on process innovations and knowledge management’s mediating effect on process innovation.