Impact of Knowledge Management Capability on Innovation Capability

Abstract

Consumer demands change unpredictably, so having up-to-date consumer knowledge is the key to stay ahead of competition. This study investigates the impact of knowledge management capability on innovation capability. Using survey research technique, 186 responses have been obtained from managerial level bankers by self-administered questionnaires. The sample has been selected on convenience basis. The findings suggest that knowledge management acquisition has a positive impact on product, service and marketing innovation. Similarly, knowledge management diffusion also positively relates with product, service and marketing innovation. The findings would help managers in understanding how knowledge management capability becomes a source of competitive edge for the firm that cannot be imitated. Further, the study would enable them to realize the role of systematic acquisition and dissemination of consumer knowledge for delivering unique solutions to their needs and demands.