KNOWLEDGE MANAGEMENT AND FIRM INNOVATIVENESS: THE MEDIATING ROLE OF INNOVATIVE CULTURE ON MNEs IN MALAYSIA

This study exhibits the mediating effect of innovative culture on the correlation amid knowledge management and firm innovativeness. The implications of organizations which does not practice a creative culture will manifest in the failure to respond and adapt successfully to shifts in the competitive nature of the market world and thus would not be able to produce better outcomes. A convenient sampling approach is used to pick 296 Malaysian dependent MNE samples from different industries. Structural Equation Modeling (SEM) AMOS 24.0 is utilized in the whole study to evaluate the connection among the concepts (e.g. “knowledge management, innovative culture and firm innovativeness”) as well as to evaluate the probabilistic strength of its framework. The outcomes emphasized on all four extents of knowledge management, namely knowledge acquisition, knowledge conversion, knowledge application and knowledge protection were confidently and considerably associated to firm innovativeness. In either side, the partnerships regarding development of information and business innovation and knowledge management and company innovation have been mediated by innovative culture. The research paper offers management teams & professionals with an ability to better appreciate skills and capacities such as KM and firm innovativeness. The findings of this research demonstrate that innovative culture, knowledge acquisition, knowledge conversion, knowledge application and knowledge protection enhance firm innovativeness. This study provides useful insights for managers who wish to enhance innovation culture activities in MNEs, and offers useful guidance to international business scholars, encouraging further research in this area.