Knowledge management and fashion retail performance: the moderating role of product complexity

Abstract

PurposeThis study explores the role of knowledge management capabilities (KMCs) in enhancing competitive advantage and organisational performance in fashion retailing. Employing the resource-based view (RBV) and knowledge-based view (KBV) perspectives, it investigates the interplay between managing knowledge effectively and fashion products’ complexity. The goal is to provide new insights into optimising KMC for greater agility and success in the fashion retail industry.Design/methodology/approachThe study analysed survey data from 322 US fashion retail professionals using partial least squares structural equation modelling (PLS-SEM).Findings The results revealed that knowledge infrastructure capability enhanced both competitive advantage and organisational performance significantly. In contrast, knowledge process capability did not significantly affect competitive advantage, it improved organisational performance. Importantly, product complexity moderated the relationship between competitive advantage and organisational performance negatively.Practical implications This study underscores the necessity for retailers in the fashion industry to enhance their KMC to bolster competitive advantage and organisational performance, while it also acknowledges product complexity’s effect on these strategies. These insights offer actionable guidance for industry leaders to optimise knowledge management to navigate the rapidly evolving retail landscape.Originality/value This research offers novel insights into the interplay of product complexity and KMC in fashion retail and highlights the unique effects on competitive advantage and organisational performance valuable for both academia and industry.