The effect of knowledge conversion on innovation and performance: A multi-layered moderated-mediation model

Abstract

This research aims to investigate how knowledge sharing and innovation are linked to affect performance. A multi-layered moderated-mediation model is developed to explore the effect of interactions between four types of innovations (product, process, marketing, and organizational) on the relationship between knowledge conversion and performance. After checking the measurement properties of the survey instrument using the LISREL package of structural equation modeling (SEM), data collected from 312 employees from the southern part of India were analyzed using Hayes's PROCESS macros. The results indicate that (i) knowledge conversion is positively associated with (a) performance and (b) organizational innovation; (ii) organizational innovation is positively associated with performance; and (iii) organizational structure mediates the relationship between knowledge conversion and performance. The findings also indicate that process innovation (second moderator) positively moderates the relationship between knowledge conversion and product innovation (first moderator) in influencing organizational innovation. The study also found that marketing innovation moderates the relationship between organizational innovation and performance. Thus, the study underscores the importance of knowledge conversion and all four types of innovation in enhancing performance. The managerial implications are discussed.