Role of tacit knowledge management process and innovation capability for stimulating organizational performance: empirical analysis, PLS-SEM approach

Abstract

PurposeThis article aims to explore the connections between tacit knowledge management and the capacity to create new products and services for stimulating organizational performance.Design/methodology/approachThis research utilizes a questionnaire-based study and 378 questionnaires gathered from different provinces of China between August and October 2022. The SmartPLS technique was used to evaluate the regression and mediation analysis on lower-order and higher-order components of the research hypotheses behind the model.FindingsThis investigation's results indicate that the tacit knowledge management process (TKMP) significantly drives product and service innovation and impacts organizational performance (ORP). According to the results, TKMP did not directly influence ORP and product innovation to mediate between Tacit knowledge and organizational performance.Research limitations/implicationsFuture research should concentrate on different combinations of influences on innovation and other consequences of introducing innovation into businesses. Moreover, researchers may add moderators to innovation and organizational performance.Practical implicationsThis study assists managers in how tacit knowledge management affects organisational performance by examining product/service innovation capabilities. Product innovation also mediates between tacit knowledge and organizational performance. Service innovation improves organizational performance, prioritizing knowledge creation, sharing and retention to increase innovation and organizational success.Originality/valueThis study contributes to the literature on tacit knowledge management, innovation capability and organizational performance by concentrating on the tacit knowledge process and using the resource-based view. This study gives a solid theoretical and practical basis for understanding the component interactions.