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International Business Management
Year: 2014  |  Volume: 8  |  Issue: 2  |  Page No.: 118 - 125

How Innovation Capability Can Be a Mediate Between Knowledge Management and Innovation Performance?

Maha Mohammed Yusr, Abdul Rahim Othman, Sany Sanuri Mohd Mokhtar and Mohd Sobri Don    

Abstract: Being innovative is one of the best and effective strategies to compete, penetrate a new market and expand the market share. Furthermore in the current situation where the competition is ever-increasing, organizations try to reinforce and enhance their innovation performance. Therefore, the present study seeks to investigate how establishing knowledge management within organization can affects positively on innovation performance. Although, the literature refers to relationship between knowledge management and innovation performance, this relationship still week and need to investigate again by examining the effect of a third variable as mediating variable which hope to make this relationship more clear. Therefore, this study targets to examine the mediating role of innovation capability between knowledge management and innovation performance. The sample frame of this study was Hi-technology companies in Kulim Technology Park (KTP) in Malaysia. The output of PLS-SEM establishes innovation capability as full mediating variable in the relationship between knowledge management and innovation performance. Moreover based on the obtained result, several recommendations have been highlighted.

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