Abstract

Purpose – This article examines the relation between knowledge management (KM) driven leadership, culture and innovation success of knowledge-intensive small and medium sized companies. By building on the previously reported research on leadership, culture, innovation, and knowledge management, we synergistically integrated KM-driven leadership and innovation success while exploring the meditational role of culture in that. Design/methodology/approach – A conceptual model comprising three constructs was developed, namely KM-driven leadership, culture and innovation-based success of the company. To examine the conceptual model, quantitative research was conducted among selected companies from the SMEs offering knowledge-intensive business services. The companies were contacted by telephone and interviews were carried out with 111 key informants. The data was later analysed with exploratory and confirmatory statistical methods. We applied structural equation modelling techniques (SEM) with Mplus 7.2 software package to investigate the effects of KM-driven leadership on culture, and consequently its effect on innovation-based success of the company. To investigate the meditational role of culture between KM-driven leadership and innovation-based success of the company a post-hoc analysis was undertaken. Originality/value – On the basis of the previous studies analysis, the following research gap has been identified. How does leadership based on knowledge management influences the innovation success of companies and what is the role of culture in this relation? By answering this question, the study contributes to the building of literature on the above topic twofold. First, it analyses the influence of KM-driven leadership in the creation of organizational culture, which in turn contributes to the innovation success of the company. Second, this research pioneers in that it explores the meditational role of culture among KM-driven leadership and innovation success. The results of the mediation analysis confirm that culture fully mediates the relationship of KM-driven leadership with innovation success.

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