The influence of environmental factors on knowledge management and innovation capacity

Abstract

This study aimed to analyze the relationship between environmental factors, Knowledge Management (KM), absorptive capacity, KM maturity level, and innovation capacity. This research used a descriptive survey of the field and was carried out from a quantitative perspective through an online questionnaire. Then, a multivariate exploratory factorial analysis was carried out, which was followed by Structural Equation Modeling (SEM) to identify and verify significant relationships, both analyses were done using Partial Least Squares (PLS). The PLS-SEM results indicated a high level of significance in the relationship between the organizational environment and KM and innovation capacity respectively. Regarding the hypotheses posed by the research model, positive influences were found in the relationships between environmental factors and knowledge transfer, knowledge transfer and maturity level, as well as maturing level and innovation capacity. Hypotheses involving absorptive capacity were also confirmed. The research framework highlights factors that impact KM and assist in their practical application to reach a high level of knowledge maturity, thus conferring a constant strategic advantage in terms of innovation capacity. A model including organizational environment, knowledge transfer, absorptive capacity, knowledge maturity, and innovation capacity has never before been tested to the best of our knowledge. As for implications for the private sector, this study illuminates how these factors are related, influence each other, and contribute to increasing KM maturity and innovation capacity within a company.