Exploring the relationship between knowledge management practices and innovation performance

TLDR

Innovation relies on knowledge and human capital management, yet organizations inconsistently apply KM, favoring either IT or humanist frameworks with little overlap. The study investigates how different KM approaches affect innovation performance in the manufacturing sector. The authors conducted a preliminary empirical study of manufacturing firms to examine the link between KM practices and innovation outcomes. The study finds that integrating soft HRM and hard IT KM practices boosts innovation performance, and managers should prioritize HRM when crafting innovation strategies.

Abstract

The process of innovation depends heavily on knowledge, and the management of knowledge and human capital should be an essential element of running any type of business. Recent research indicates that organisations are not consistent in their approach to knowledge management (KM), with KM approaches being driven predominantly within an information technology (IT) or humanist framework, with little if any overlap. This paper explores the relationship between KM approaches and innovation performance through a preliminary study focusing on the manufacturing industry. The most significant implication that has emerged from the study is that managers in manufacturing firms should place more emphasis on human resource management (HRM) practices when developing innovation strategies for product and process innovations. The study shows that KM contributes to innovation performance when a simultaneous approach of “soft HRM practices” and “hard IT practices” are implemented.