Exploring the Impact of Knowledge Management Process On Innovation By Means of Structural Equation Modeling: A Research in Automotive Industry

The purpose of this study is to explore the impact of knowledge management process on innovation by means of structural equation modelling and propose strategies for automotive companies. The research is conducted in the fourth biggest city of Bursa which is a leading automotive industry area.Design/methodology/approach: The main population of this research consists of 252 automotive sub-industry companies that are registered to organized industry regions in Bursa city centre. A structured questionnaire was prepared based on the literature (Gold et al. (2001), Darroch (2003), Darroch (2005), OECD Oslo Manuel (2005), Du Plessis (2007), Carney ve Ryan (2010), Oeij et al. (2012)) and managers of the companies are asked to fill the questionnaire. 107 questionnaires were collected. Structural equation modelling is used to explore the impact of knowledge management process on innovation. Findings: According to the research findings; knowledge acquisition, knowledge transformation and knowledge application were found to have positive impacts on knowledge protection and knowledge protection was found to have a strong impact on innovation. Finally, in the light of these modelling results, strategies are proposed for the companies of automotive sub-industry. Research/practical implications: In today’s consumer-oriented markets, innovation has become the most important factor of sustainable competitiveness for companies. Companies must focus on knowledge and knowledge management process in order to be innovative in today’s economic environment that is rapidly changing because of the technological developments. According to Gold et al. (2001), knowledge management process consists of knowledge acquisition, knowledge transformation, knowledge application and knowledge protection steps. Company managers should know the relationships among these steps and the impact of these steps on innovation. This will lead to efficient knowledge management process, better innovation and competitive power for automotive companies.Originality/value: Knowledge management and innovation are two crucial and related concepts. Because, knowledge serves as an important role in the innovation process. It is very important to have the information about the impact of knowledge management process on innovation because this information can lead companies’ strategies and make companies more competitive. This study fills an important gap in the related literature by examining the influence of knowledge management process on innovation in Turkish automotive industry, Bursa region.