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The effect of knowledge management capacity on firm performance through sequential mediations of strategic HRM, administrative and technical innovations

Arshinder Singh Chawla (Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, India, and PHQ, Sector 6, ADGP, Administration and Telecom-IT, Panchkula, India)
Subhash C. Kundu (Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, India)
Sandeep Kumar (Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, India)
Neha Gahlawat (Department of Human Resources, ICFAI Business School, ICFAI Foundation of Higher Education (IFHE) University, Hyderabad, India)
Homesh Kundu (Guru Jambheshwar University of Science and Technology, Hisar, India)

Journal of Asia Business Studies

ISSN: 1558-7894

Article publication date: 11 October 2021

Issue publication date: 29 November 2022

883

Abstract

Purpose

This study aims to explore the relationship between knowledge management (KM) and firm performance through mediating effects of strategic human resource management (HRM) and organizational innovations.

Design/methodology/approach

Usable responses from 638 employees belonging to 230 organizations operating in India were collected via questionnaires. To determine the hypothesized relationships between the study variables, namely, KM capacity, strategic HRM, administrative innovation, technical innovation and firm performance, bootstrapping method via PROCESS was put into use.

Findings

The findings strengthen the notion that effective KM in firms leads to better innovation capabilities and higher firm performance. Further, the study reveals that the effects of KM capacity on firm performance go through a relationship chain (serial mediation) consisting of strategic HRM, administrative innovation and technical innovation.

Practical implications

The results undeniably infer that the effective management of knowledge is critical for leveraging innovations and other performance indicators in organizations. More specifically, it does not only result in enhanced firm performance but also in proper utilization of strategic HR practices for the benefits of employees, with a boost in administrative and technical innovations in organizations.

Originality/value

By confirming several mediation paths through strategic HRM, administrative and technical innovations, this study offers some noteworthy insights in expounding the relationship between KM and firm performance.

Keywords

Citation

Chawla, A.S., Kundu, S.C., Kumar, S., Gahlawat, N. and Kundu, H. (2022), "The effect of knowledge management capacity on firm performance through sequential mediations of strategic HRM, administrative and technical innovations", Journal of Asia Business Studies, Vol. 16 No. 6, pp. 923-942. https://doi.org/10.1108/JABS-12-2020-0479

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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