Title: Linking Knowledge Management and
Innovation:
a Structural Equation Modeling Approach
Abstract: Knowledge Management (KM) is
gaining attention and acceptance by many organizations in search for
competitive
advantage. KM facilitates opportunistic application of fragmented
knowledge
through system integration. Being a new discipline, KM has been
associated
with innovation, competitiveness, and business performance. General
interest
pertaining to KM and its link to innovation exists, however, there is
little
reported research that supports for such empirical links especially in
Malaysian
context. Furthermore, contemporary KM studies are based upon American
and
European models, frameworks, and instruments. There is a need for local
research
to address the KM practices and effects based on local settings. Using
data
from 149 large manufacturers, a KM enabling practices survey, which
comprises
of 5 key domains, is compared with four demographic firm elements.
T-test,
One-way ANOVA, LSD, and multiple regression analysis are applied to
identify
the level of KM practices and study the significant differences in
terms
of demographics among these large manufacturers. It is discovered that
KM
practices are at medium level among large firms being surveyed. It is
found
that there are significant differences in KM practices among firms with
high
annual sales. Measurement model analysis is engaged to confirm
significant
relationships between variables and their respective KM factors.
Subsequently,
structural model analysis is applied to test the theory of structural
relation
between KM enabling practices and innovation activities. Finally, a
KM-Innovation
model is proposed based on good fit indices of structural equation
modeling.
Authors: Rosmaini Tasmin and Peter Woods.