Knowledge Management Processes and Firm Innovation Capability: A Theoretical Model

Abstract

The major goal of knowledge management (KM) is to enhance innovation. Previous research on innovation andknowledge management has shown a positive relationship between innovation and effective knowledgemanagement (Smith et al., 2005; Darroch & McNaughton, 2002; Dougherty et al., 2002; Nonaka & Takeuchi,1995). Some scholars have maintained that the innovation that accelerates creative solutions depend greatly onthe accumulation of new knowledge in an organization. Knowledge accumulated is the organization isessentially utilized by people via four major knowledge management processes. Unfortunately, KM literatureoverpraises the technological aspects neglecting the people dimensions and the soft aspect of people whoactually possess the knowledge that could spark innovation. In a bid to fill this void, this paper contributions toknowledge by considering the need for a theoretical model of the attitudinal and behavioural conditions of theemployees who engage in knowledge management processes to push the boundaries of their firm’s innovationcapabilities.