Knowledge Management Practices and Competitive Advantage: The Mediating Role of Innovation Capacity

Abstract

This study has investigated the impact of knowledge management on competitive advantage through innovation capacity (mediator) of an organization. The research sample comprised employees (N=331) of private telecommunication organizations. Two step procedure of Structural equation modeling has been followed. In the first step confirmatory factor analysis was conducted for scale validation and the second step included structural model for investigating the relationship between these three processes. The results revealed that all the practices of knowledge management are being practised by the telecommunication organizations. Further, innovative capacity fully mediates the relationship of knowledge management and competitive advantage. In future, the impact of organization culture in between knowledge management and innovation capacity should be tested.