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Abstract The purpose of knowledge management is innovation. However, this study proposes that the existence of knowledge management in the knowledge‐worker's work environment can nurture the overall satisfaction of knowledge worker. As the ultimate purpose of knowledge management is innovation performance, therefore, the satisfaction of knowledge worker as an outcome of knowledge management should be greater innovation performance. Consequently, the purpose of this study is to test the mediating role of satisfaction of knowledge worker between knowledge management and innovation. The study collected the data from 306 knowledge workers (engineers and managers) of software houses from Pakistan. The SmartPLS 3 Version 2.7 software that uses the PLS‐SEM (Partial Least Square‐Structural Equation Modelling) technique was used. The results indicate that satisfaction of knowledge worker mediates between two knowledge management processes (knowledge creation and knowledge sharing) and innovation significantly. However, it does not mediate between knowledge utilization and innovation significantly.
Shujahat et al. (Fri,) studied this question.