Impact of Knowledge Management and Organizational Learning on Innovation Performance in Tech Firms

Abstract

In a world where there is high rate of change in technology and high rate of competition in the global economy, innovativeness within firms has emerged as a very important factor that determines the success of the firms in the long run. This paper examines the impact of knowledge management (KM) and organizational learning (OL) practices on the performance of innovation in technological companies. The research uses evidence of recent empirical research based on high tech enterprises and technology parks to synthesize evidence on how knowledge creation, sharing, and learning processes improve the results of product and process innovation. The analysis concludes that the presence of strong KM processes, especially creation of knowledge and sharing of knowledge coupled with high organizational culture of learning is a strong indicator of enhancing the innovativeness of firms. Moreover, organizational learning bridges the gap between KM and innovation whereby firms are enabled to convert knowledge into physical innovative products. The results highlight the strategic value of KM and OL in enabling the tech companies to maintain the competitive edge in the changing environments, and indicate the practical ways of guiding managers to the culture of knowledge-based innovation.