The effect of knowledge management processes on organizational innovation through intellectual capital development in Iranian industrial organizations

Abstract

PurposeThe purpose of this paper is to investigate the relationship among knowledge management (KM), intellectual capital and organizational innovation. The present literature in these three areas of study, the effect of KM on organizational innovation through the development of intellectual capital has been rarely studied so far. Therefore, in this research, the authors tried to examine the effect of KM processes on organizational innovation through the development of intellectual capital in Iranian industrial organizations.Design/methodology/approachThe data of this research has been gathered and aggregated through the distribution of a closed questionnaire in a sample of 384 people selected from the statistical population consisting 4,589 managers and senior managers of the Iranian industrial organizations. Data were then analyzed using SPSS software and structural equation modeling method which was used to measure the models integrity.FindingsThe results of this research indicate that KM processes affect the development of intellectual capital of an organization. KM processes are also effective in promoting innovation in the organization. KM processes also contribute to improving the level of innovation in the organization through intellectual capital development. The results also show that managers need to focus on the development of their human capital through the use of young native educated specialists to maximize internal capacity and knowledge creation and move toward improving human capital of the organization.Originality/valueThe present literature in these three areas of study, the effect of KM on organizational innovation through the development of intellectual capital has not been studied so far. This study of industrial organizations is also a valuable factor in this paper.