Knowledge management, organizational culture and organizational learning on innovation in automotive industry

Abstract

The ability to innovate is critical for all companies to gain and sustain competitive advantage. However, empirical studies looking at factors affecting innovation in Iranian automotive industry are still lacking. The main objective of this study was to examine the direct and indirect effect of organizational culture, knowledge management and organizational learning on innovation. This study combined knowledge-based view theory (KBV), competitive value framework and organization learning theories to develop a new theoretical framework to investigate factors affecting innovation. Data were gathered from a survey of 279 companies supplying automobile parts to Iran Khodro Company, an Iranian leading automobile manufacturer. Stratified random sampling technique was used to ensure that the population of companies supplying automobile parts to the company was adequately represented. Data were analyzed using Structural Equation Modeling (SEM). Results of the study revealed that organizational culture and knowledge management do influence organizational innovation. Besides that, organizational learning played a significant role as a mediator in the relationship between organizational culture, knowledge management and organizational innovation. However, knowledge management did not have a mediator role in the relationship between organizational culture and organizational innovation. In this study, the research has focused on innovation to link organizational culture, knowledge management and organizational learning. Besides that, theoretical contributions related to organizational culture, knowledge management and organizational learning to improve organizational innovation in the Iranian automotive industry are provided. As a practical contribution, the findings of the study serve as a guideline for policy makers and managers in the formulation of policies and strategies for sustainable innovation.