Demystifying the link between knowledge management capability and innovation ambidexterity: organizational structure as a moderator

Abstract

PurposeThis study examines the relationship between knowledge management (KM) capability and innovation ambidexterity, and their subsequent influence on firm performance. It also investigates whether organizational structure – in terms of connectedness and centralization – helps to develop a suitable context that either hinders or catalyzes the effectiveness of KM capability in predicting innovation ambidexterity.Design/methodology/approachData were collected from 336 manufacturing organizations in Pakistan using a random sampling technique. Partial least square-based structural equation modelling (PLS–SEM) was employed to analyze the data.FindingsResults reveal that KM capability is positively linked with innovation ambidexterity and firm performance. Innovation ambidexterity positively mediates the link between KM capability and firm performance. Connectedness positively moderates the association between KM capability and innovation ambidexterity. However, centralization negatively moderates the link between KM capability and innovation ambidexterity.Research limitations/implicationsThis research offers theoretical insights into when and how KM capability is effective in prompting performance through innovation ambidexterity by creating a suitable context.Practical implicationsThe study indicates that innovation may develop in an ambidextrous manner in an organization as long as the organization is proficient in creating a suitable context, i.e. structure to support it. Organizations should strive to develop sustained KM capabilities because these are seminal for enabling the challenging task of exploiting existing resources for innovation while also tapping on new opportunities for explorative breakthroughs.Originality/valueThis research contributes to a novel understanding regarding the importance of KM capability in fostering manufacturing organizations to engage in ambidexterity by creating a suitable context where optimal amount of each form of innovation activities is calibrated using KM capability.HighlightsKnowledge management capability is crucial for simultaneous exploitation and exploration of innovationInnovation ambidexterity (i.e. simultaneous exploitation and exploration of innovation) fosters firm performanceInnovation ambidexterity mediates the positive effect of knowledge management capability on firm performanceConnectedness strengthens the relationship between knowledge management capability and innovation ambidexterityCentralization weakens the effect of knowledge management capability on innovation ambidexterityInnovation can be developed in an ambidextrous way in organizations as long as organizations have knowledge-based competencies and proficient in creating suitable context

Proactiveness, knowledge management capability and innovation ambidexterity: an empirical examination of digital supply chain adoption

“…'s (2022) study concerning the impact of knowledge sharing on innovation ambidexterity, it was in harmony with the work of Rialti et al. (2020) on strategic flexibility and Shafique et al. 's (2022) study on KMC as an instrumental and significant enabler for achieving innovation exploration and exploitation in Pakistani firms.…”

“…Alshawabkeh et al (2020), based on data collected from 350 senior managers in Jordanian manufacturing firms, emphasised the mediating role of innovation ambidexterity between KMC and project success. Similarly, Shafique et al (2022) reported innovation ambidexterity as a mediator between KMC and firms' performance when analysing data collected from 336 manufacturing firms. Accordingly, the present study developed the following hypothesis: H10.…”

Influence of managerial practices, productivity, and change management process on organizational innovation capability of small and medium businesses

“…We have demonstrated that by improving the MGS and the decision-making process, and by articulating appropriate planning, it is possible for organizations to strengthen their innovation capability. This idea has received support from different studies (Ali et al , 2017; Shafique et al , 2022; Behl et al , 2023).…”

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“…The proposed relationships between KM capabilities, innovation ambidexterity and organizational structure were further evident in a study by Shafique et al (2022) of firms operating within different manufacturing industries in Pakistan. Study context was determined by the nation’s status as an emerging economy and emergence from years of sociopolitical turmoil.…”