In search of superior performance: knowledge management and learning capability of entrepreneurial firms

Abstract

Purpose

This study underscores the critical importance of knowledge management (KM) in the context of small and medium entrepreneurial firms (SMEFs) that aim to leverage their organisational learning capability (OLC) to enhance their product innovation performance (PIP). Drawing on the foundations of resource-based and contingency theories, this study delves into the impact of OLC on SMEFs' PIP through the intermediary role of KM, focussing on an emerging economy perspective. Additionally, this investigation explores how market dynamism (MDY) moderates the indirect connection between OLC and PIP via KM.

Design/methodology/approach

The study involved 262 SMEFs in Ghana, with data analysis conducted using PROCESS macros in SPSS 23.0 and LISREL 8.50.

Findings

This study's findings underscore the mediating role of KM in shaping the relationship between OLC and PIP. Furthermore, they reveal that, particularly in high MDY environments, the link between KM and PIP through KM is significantly strengthened.

Practical implications

The study clarifies that responding to MDY's demands is a complementary managerial capability enabling firms to channel their KM activities to improve PIP. Effectively, understanding the relationship between MDY and KM could substantially influence the policies and strategies managers adopt to improve PIP for organisational growth and survival.

Originality/value

This study extends the OLC–PIP research and contributes to the growing literature by offering a strong account of how OLC influences PIP and the prevailing boundary conditions that impact the KM-PIP relationship.