Exploring the Role of Knowledge Management for Enhancing Firm´s Innovation and Performance

Contemporary organizations require a strong knowledge management (KM) to gain competitive advantage. Based on a review of the literature, the present investigation delineates three components of KM: technical KM resource, social KM resource, and KM process capability (KMPC). This research empirically examines the relationship among KMPC, innovation dimensions, and firm performance. Moreover, the proposed model also investigates two variables as antecedent to KMPC: technical KM resource and social KM resource. A framework is tested using data from 2004 Common Wealth 1000 largest firms in Taiwan. The analytical results confirmed the impact of technical and social KM resources on KMPC. KMPC was found to be essential for improving innovation speed and innovation magnitude. Advanced innovation positively influenced firm performance.