The interplay between knowledge management and organizational performance measurement through the mediating effect of innovation capability

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Knowledge management is a ‘know-how’ expression through which companies can access and apply their shared knowledge to achieve innovation, improve performance, and attain long-term competitive advantage. The present study investigates the association between knowledge management and organizational performance measurement with innovation capability mediating in the Jordanian Telecommunication sector. Descriptive and inferential statistics, such as regression analysis and structural equation modeling, were used to analyze 575 responses from employees working in major telecommunication companies like Zain, Orange, and Umniah. The performances of knowledge management impact on organizational performance measurement results were positive, with the R-square amounting to 0.803. The change of each predictor variable in terms of B was: Knowledge Creation, 0.179; Knowledge Storage, 0.196; Knowledge Sharing, 0.399; Knowledge Application, 0.221; and Knowledge Evaluation, 0.234. Further, Innovation capability positively mediates the impact of knowledge management on organizational performance measurement. Overall, the study’s findings emphasize that an enterprise should effectively handle its intellectual assets and enhance its innovation capabilities since it may have the potential to hold a competitive advantage and overall performance in an advanced era.

Acknowledgment
The author is grateful to Middle East University, Amman, Jordan, for the financial support to cover this article’s publishing fee.

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    • Figure 1. Research model
    • Table 1. Frequencies and percentages according to the study’s demographic variables
    • Table 2. Cronbach’s Alpha coefficients
    • Table 3. Descriptive statistics and estimation for the knowledge management variable
    • Table 4. Descriptive statistics and estimation for the organizational performance measurement variable
    • Table 5. Descriptive statistics and estimation for the innovation capability variable
    • Table 6. Test of the impact of knowledge management (knowledge creation, knowledge storage, knowledge sharing, knowledge application, knowledge evaluation) collectively on organizational performance
    • Table 7. Test of the impact of knowledge management (knowledge creation, knowledge storage, knowledge sharing, knowledge application, and knowledge evaluation) collectively on financial performance
    • Table 8. Test of the impact of knowledge management (knowledge creation, knowledge storage, knowledge sharing, knowledge application, and knowledge evaluation) collectively on non-financial performance
    • Table 9. Test of the impact of knowledge management on innovation capability
    • Table 10. Test of the impact of innovation capability on organizational performance
    • Table 11. Coefficients of direct and indirect effects
    • Conceptualization
      Azzam A. Abou-Moghli
    • Data curation
      Azzam A. Abou-Moghli
    • Formal Analysis
      Azzam A. Abou-Moghli
    • Funding acquisition
      Azzam A. Abou-Moghli
    • Investigation
      Azzam A. Abou-Moghli
    • Methodology
      Azzam A. Abou-Moghli
    • Project administration
      Azzam A. Abou-Moghli
    • Resources
      Azzam A. Abou-Moghli
    • Software
      Azzam A. Abou-Moghli
    • Supervision
      Azzam A. Abou-Moghli
    • Validation
      Azzam A. Abou-Moghli
    • Visualization
      Azzam A. Abou-Moghli
    • Writing – original draft
      Azzam A. Abou-Moghli
    • Writing – review & editing
      Azzam A. Abou-Moghli