The influence of knowledge management on innovation and organizational performance

This study examines how the knowledge management processes of knowledge creation, integration, implementation, and sharing affect innovation and organizational performance. The study also examines the mediating role of innovation in the relationship between these knowledge management processes and organizational performance. Although the literature recognizes the importance of knowledge management, analyses have not considered the role of each of these knowledge management processes in addition to their collective impact on performance. This study addresses this research gap by empirically examining the relationships among these variables using partial least squares structural equation modeling (PLS-SEM). Questionnaire data were collected from 528 professionals across Romania. SPSS was used to produce and analyze descriptive statistics, and SmartPLS was employed to conduct PLS-SEM. Knowledge creation and sharing significantly influenced innovation, whereas knowledge implementation did not. Innovation was observed to be a key link between knowledge management and organizational performance. These findings have substantial implications for both knowledge management theory and practice. Specifically, the findings underscore the need to emphasize knowledge creation and sharing to foster innovation and secure a competitive advantage. This study enriches the theoretical literature by validating an integrated model using PLS-SEM. It also provides actionable recommendations for managers seeking to improve organizational performance through innovation.