The power of strategic knowledge management in the relationship between innovation and the performance of large manufacturing firms in Malaysia

Abstract

Purpose: This study aims to explore the interaction of strategic knowledge management (SKM) and innovation on the performance of large manufacturing firms (LMFs) in Malaysia. Design/methodology/approach: This study used a quantitative approach in investigating this interaction. Smart partial least-squares analysis was performed to test the hypotheses. Findings: It was observed that administrative innovation, process innovation and product innovation were effective drivers of LMF performance. It was also ascertained that SKM has no moderating effect on the product innovation relationship with performance, although it does moderate the relationships between LMF performance and administrative innovation and process innovation, respectively. Research limitations/implications: The main limitation of this study is its focus on Malaysian LMFs. It nevertheless contributes to the literature by extending understanding of SKM and innovation dimensions from multi-faceted perspectives. As this is largely ignored in the literature, the study paves the way for additional research. Practical implications: The findings may be used as guidelines for chief executive officers, particularly on the way SKM and innovation can be developed for enhanced LMF performance, in the context of South Asian countries. Originality/value: To the best of the authors’ knowledge, this is the first empirical work to confirm the main drivers of SKM, including in the analysis the effect of administrative innovation, process innovation and product innovation and performance, in the context of the manufacturing sector. In support of an original conceptual model, the insights contribute to the literature on innovation, LMFs, SKM and emerging economies.