Influence of Knowledge Management Orientation on Performance with Innovativeness in SMEs

Abstract

The objective of this research was to examine the effect of knowledge management orientation (KMO) on performance for small and medium-sized companies (SMEs) in the Thai food sector via the mediating role of innovativeness. Two hundred and fifty-three SMEs in the Thai food sector participated in providing information for this study. Data analysis included descriptive and inferential statistics, with structural equation modelling (SEM) being used for the latter. The study discovered that KMO, across four dimensions (organizational memory, knowledge sharing, absorption, and receptivity), had a substantial direct influence on innovativeness. In terms of performance, however, the results showed that the effects of KMO on this were not significant and that this orientation must be mediated by innovativeness. All dimensions of KMO must be pursued simultaneously to encourage innovativeness and performance. Thus, entrepreneurs wanting to improve their performance should promote effective KMO involving all four of the above identified dimensions, along with the support of innovativeness.