Abstract

The main objective of this study was to examine the direct and indirect effects of organizational culture, knowledge management and organizational learning on innovation. The study combined knowledge-based view theory (KBV), competitive value framework to develop a new original theoretical framework for investigation of factors that affect innovation. Data was gathered from a survey of 279 companies supplying automobile parts to Iran Khodro Company, an Iranian leading automobile manufacturer. Study discovered that organizational culture and knowledge management influenced organizational innovation. Besides that, organizational learning played a significant role as a mediator in that relationship. However, knowledge management was not considered as a mediator in the relationship between organizational culture and organizational innovation. As a practical contribution, the findings of the study serve as a guideline for policy makers and managers in the formulation of policies and strategies for sustainable innovation. Knowing the effectiveness of the innovation can help the government to make decisions about the continuation of this policy. Moreover, study contributes to firm management in formulation of policies and strategies for sustainability in innovation context. Innovation assists organizations supplying the product or service in the automotive sector to operate innovatively, competitively and profitably.

Highlights

  • In a turbulent economic environment, innovation is considered as a strategic driver to gain competitive advantage, it increases the sustainability, productivity, economic growth and business competitiveness (Smit, Trigeorgis 2012)

  • We conclude that organization learning in firms can be considered as a culture enhancing mechanism that directs all members of the organization towards a shared vision of innovativeness in all core processes and products

  • From the results obtained testing the hypotheses, it can be seen that the inclusion of the knowledge management (KM) variable in the model significantly and positively increased the variance explained in innovation

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Summary

Introduction

In a turbulent economic environment, innovation is considered as a strategic driver to gain competitive advantage, it increases the sustainability, productivity, economic growth and business competitiveness (Smit, Trigeorgis 2012). K. Abdi et al The effect of knowledge management, organizational culture and organizational. Importance of knowledge management (KM) is emphasized. Many researchers and practitioners have concluded that KM must facilitate creating new knowledge in order to gain and sustain competitive advantage, gaining knowledge successfully in management processes affect organizational innovation (OI) (Kaklauskas, Kanapeckiene 2005). Knowledge maps (i.e. Ghosh et al 2012; Hoła et al 2015); fuzzy cognitive maps (i.e. Ferreira et al 2017); KM systems and knowledge-based decision support systems (i.e. Tserng et al 2016; Zavadskas et al 2010; Kaklauskas et al 2012, 2013a, 2013b; Ginevičius et al 2011; Kanapeckiene et al 2010) are developed for various industrial problems’ solutions

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