Exploring the role of knowledge management and organizational agility in an emerging market

Abstract

Entities worldwide continue to engage in knowledge management practices (KMP) and organizational agility (OA); however, little is known about their relationship with firms’ inter-organizational learning (IOL) and innovation speed. Moreover, risk-taking rationales are used as moderators. Partial Least Square Structural Equation Modeling (PLS-SEM) is used for hypothesis testing. Based on the data obtained from 294 participants based in Lahore, Pakistan, the results show a positive and significant relationship between firms’ KMP and OA, IOL, and innovation speed. Similarly, the results suggest a significant positive effect between IOL and OA. Furthermore, the relationship between KMP and OA is significantly influenced by IOL. Moreover, firms’ rate of innovation plays a significant role in the relationship between KMP and OA. Similarly, a positive correlation exists between organizations’ risk-taking tolerance and OA. Finally, the results show that a higher risk-taking tolerance enhances the connection between IOL and OA. First, this study contributes to the existing academic literature by focusing on predictors determining OA. Second, this article integrates KMP, IOL, innovation speed, and risk-taking tolerance to determine OA. Third, it employs resource-based and knowledge-based view theories. These findings underscore the importance of leveraging knowledge management, organizational flexibility, and risk-taking behaviour to accelerate inter-organizational learning and innovation outcomes. This research offers significant implications for companies seeking to optimize their operational and strategic practices in a dynamic, knowledge-based economy.