Impact of knowledge creation and organisational learning on organisational innovation: an empirical investigation

The purpose of this study was to examine the relationship between knowledge creation, organisational learning and organisational innovation. Organisational innovation was evaluated by Damanpour model in the form of technological and administrative innovation. A descriptive (non-trial) and correlational methodology using structural equations modelling was used for the study. Participants included top and middle managers of knowledge-based, start-up and industrial knowledge-based companies. These companies were divided into 14 groups. A number of 200 questionnaires were distributed among top and middle managers of these companies. Out of these, 141 questionnaires were returned. Of the questionnaires returned, eight questionnaires were partially completed; thus, they were excluded from the analysis. Finally, 133 questionnaires were analysed. This study used a correlational methodology by structural equations modelling in the form of partial least squares to test the measurement model and hypotheses. For data analysis, SMARTPLS was used to test the model. The results indicate a positive direct relationship between knowledge creation and technological and administrative innovation. Moreover, knowledge creation has a positive effect on organisational learning. The results also found a positive direct relationship between organisational learning and technological and administrative innovation; organisational learning mediates the relationship between knowledge creation and technological and administrative innovation.