Combined Impactof Knowledge Management and Total Quality Management on Innovation Performance: Insights from Indian IT Industry

Abstract

Organizations are operating in an environment characterized by volatility, uncertainty, complexity and ambiguity. In such an environment an organization can attain sustained competitive advantage only through innovation. Innovation performance is the only effective yardstick that differentiates an ordinary organization from a world class one. Knowledge management is the process of creation and application of knowledge required for the attainment of organizational objectives. Total quality management stresses on continuous improvement to achieve organizational effectiveness. Despite the popularity of knowledge management, total quality management and innovation performance, empirical studies about the relationship between these variables is scant especially in Indian context. Present study attempted to find out the collective impact of knowledge management and total quality management on innovation performance in Indian IT industry. Data were collected from 219 employees working in 15 large IT organizations in Kerala by using simple random sampling technique. Results established that knowledge management and total quality management individually as well as collectively impact innovation performance. The significant influence on innovation performance is more when knowledge management and total quality management were combined. Results sensitize managers to create a differentiated management architecture that supports both knowledge management and total quality management simultaneously to foster innovation.