Developing a Framework for Knowledge Creation Capability towards Innovation Indian Context

Abstract

In the globalized knowledge economy, corporates use innovation as an integral part of their newlinestrategy to deal with competition, diversification of product and services, quality, market share newlineand profit. Many successful companies have found that KM strategies and practices are central to newlineongoing innovation (Boutellier et al., 1999; David and Foray, 2001; AD Little, 2001; Tidd et al., newline1997). The new age organization are more fluid and organic, almost biological in nature where newlineideas vital for the organization are identified with and implemented. On the same premise, the newlinemyriad avenues of innovation and sustainability are not mere collection of ideas, training of newlinepeople. It is about how much value that specific process has added to the organization (Sinha et newlineal., 2009). This research proposed a model to link the two domains: KM and innovation newlineempirically. newlineThe field of innovation is extremely dynamic. Organizations rely on innovation for new newlineproducts and services to provide them with competitive advantage. Closely linked with newlineinnovation is the body of knowledge referred to collectively as KM. This study focuses on newlinethe role of knowledge management in enhancing innovation in organizations. In particular newlinethe researcher seeks to establish the linkages between KM practices in the IT/ITES sector newlineand innovation. From this literature a possible KM model which promotes innovation is newlinesuggested. Second, a research study is discussed which seeks to further examine and newlinedevelop the model using the discriminant analysis. The study involved 435 respondents newlinefrom 46 organizations, in regard to the key areas of KM practices in IT/ITES sector and newlineinnovation. Overall it was found that effective systematic KM practices namely KM culture newlineand leaders support, KM processes, Networking and alliances, KM strategy and Training newlineand development of employees for KM significantly contribute to innovation.