Knowledge Management Influencing Organizational Performance Through Organizational Innovation

The important of knowledge management within enterprises is growing in recent years, as we can see the facts through KM manager and CKO appearing in the World TOP 500. The researchers also view knowledge management as a crucial source of competitive advantage. However, knowledge management is facing many challenges because of IT development, globalization and so on. Using knowledge management still have many problems. Most enterprises can not successfully start and maintain the knowledge management activities.As to the theory, most scholars have confirmed that knowledge management will facilitate organizational performance. But some scholars point out that the effect of knowledge management on firm performance is not obvious and direct, so the use of some intermediary measure seems more appropriate and important. The current theory and empirical research seldom disscuss the mechanism between knowledge management and organizational performance, and mainly and usually concentrate in the high-tech enterprises or technology-based enterprises.Therefore, this article puts the emphasis on how the knowledge management affect the organizational performance and exploring the intermediary factor between their relationship under the domestic enterprises in order to be able to draw some useful conclusions for the theory and practice. In this paper, we review a lot of literature, analyze the process of knowledge management, the classification of organizational innovation, the measurement of organizational performance, and the relationship between them, construct our own mechanism model and hypothesis, and use many research methods.The results show that only some of the knowledge creation affect organizational innovation and organizational performance directly, knowledge application has a direct impact on organizational performance and organizational innovation. Organizational innovation except strategic innovation has a direct effect on organizational performance and plays an intermediary role in the relationship between knowledge management and organizational performance.