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Knowledge management capability, environmental dynamism and innovation strategy in Malaysian firms

Seyedeh Khadijeh Taghizadeh (Department of Management, College of Economics and Political Science, Sultan Qaboos University, Muscat, Oman)
Artan Karini (Faculty of Business, Sohar University, Sohar, Oman)
Gunalan Nadarajah (OYA Graduate School of Business, Universiti Utara Malaysia, Sintok, Malaysia)
Davoud Nikbin (Faculty of Business, Sohar University, Sohar, Oman)

Management Decision

ISSN: 0025-1747

Article publication date: 4 August 2020

Issue publication date: 2 July 2021

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Abstract

Purpose

The objectives of this study is first to assess the effect of organizational antecedents on knowledge management capability and its effect on innovation strategy through the moderating effect of environmental dynamism.

Design/methodology/approach

The data were collected from SMEs in central region of Malaysia through a cross-sectional survey of 202 owners and analyzed through structural equation modeling using SmartPLS software.

Findings

The results show that while formal structure, selection policies, incentives and training and development policies have positive affect on knowledge management capability, there is no effect of innovation culture on knowledge management capability. Knowledge management capability has a positive and significant effect on innovation strategy. Interestingly, the findings show that environmental dynamism strengthens the positive effect of knowledge management capability on innovation strategy.

Practical implications

The findings of this study emphasize on the potential of collaboration among people for creating effective knowledge sharing in organizations and modalities in order to successfully design a collaborative knowledge-based work environment.

Originality/value

The model links organizational antecedents with knowledge management capability and the critical role of knowledge management capability on innovation strategy of SMEs considering environmental dynamism.

Keywords

Citation

Taghizadeh, S.K., Karini, A., Nadarajah, G. and Nikbin, D. (2021), "Knowledge management capability, environmental dynamism and innovation strategy in Malaysian firms", Management Decision, Vol. 59 No. 6, pp. 1386-1405. https://doi.org/10.1108/MD-01-2020-0051

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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