{"title":"Reality is different from what we see: Knowledge management and firm innovation","authors":"Harshani Dedunu , Salinda Weerasinghe , Ananda Wickcramasinghe","doi":"10.1016/j.jik.2025.100693","DOIUrl":null,"url":null,"abstract":"<div><div>In today's knowledge-driven business environment, firm innovation hinges on effective knowledge management. Organizations are thus motivated to continuously create and apply knowledge to sustain competitive advantage through innovation. This study investigates how various knowledge management dimensions uniquely impact firm innovation within an integrated framework, examining both linear and non-linear relationships—an approach not previously explored. Using a deductive, quantitative approach, data were collected via an online survey of 437 banking employees, with Structural Equation Modelling (SEM) employed to analyze quadratic relationships. Findings reveal that knowledge creation has an inverted U-shaped relationship with firm innovation, while knowledge application shows a U-shaped relationship. In contrast, knowledge sharing, application, and protection exhibit linear relationships, with knowledge sharing being most impactful in driving innovation within the banking sector. These results underscore that overestimating the impact of knowledge management can be counterproductive, as its dimensions do not consistently follow linear paths. The study offers critical insights for management, particularly in knowledge-intensive industries, to monitor and calibrate each knowledge management dimension's influence on firm innovation for optimal performance.</div></div>","PeriodicalId":46792,"journal":{"name":"Journal of Innovation & Knowledge","volume":"10 3","pages":"Article 100693"},"PeriodicalIF":15.6000,"publicationDate":"2025-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Innovation & Knowledge","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S2444569X25000435","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
In today's knowledge-driven business environment, firm innovation hinges on effective knowledge management. Organizations are thus motivated to continuously create and apply knowledge to sustain competitive advantage through innovation. This study investigates how various knowledge management dimensions uniquely impact firm innovation within an integrated framework, examining both linear and non-linear relationships—an approach not previously explored. Using a deductive, quantitative approach, data were collected via an online survey of 437 banking employees, with Structural Equation Modelling (SEM) employed to analyze quadratic relationships. Findings reveal that knowledge creation has an inverted U-shaped relationship with firm innovation, while knowledge application shows a U-shaped relationship. In contrast, knowledge sharing, application, and protection exhibit linear relationships, with knowledge sharing being most impactful in driving innovation within the banking sector. These results underscore that overestimating the impact of knowledge management can be counterproductive, as its dimensions do not consistently follow linear paths. The study offers critical insights for management, particularly in knowledge-intensive industries, to monitor and calibrate each knowledge management dimension's influence on firm innovation for optimal performance.
期刊介绍:
The Journal of Innovation and Knowledge (JIK) explores how innovation drives knowledge creation and vice versa, emphasizing that not all innovation leads to knowledge, but enduring innovation across diverse fields fosters theory and knowledge. JIK invites papers on innovations enhancing or generating knowledge, covering innovation processes, structures, outcomes, and behaviors at various levels. Articles in JIK examine knowledge-related changes promoting innovation for societal best practices.
JIK serves as a platform for high-quality studies undergoing double-blind peer review, ensuring global dissemination to scholars, practitioners, and policymakers who recognize innovation and knowledge as economic drivers. It publishes theoretical articles, empirical studies, case studies, reviews, and other content, addressing current trends and emerging topics in innovation and knowledge. The journal welcomes suggestions for special issues and encourages articles to showcase contextual differences and lessons for a broad audience.
In essence, JIK is an interdisciplinary journal dedicated to advancing theoretical and practical innovations and knowledge across multiple fields, including Economics, Business and Management, Engineering, Science, and Education.