The innovation interface between knowledge management and firm performance

Although the evidence suggests that knowledge management (KM) is instrumental to superior firm performance, research on the mechanisms that mediate this relationship is still evolving. Using KM practices that support the knowledge-related processes (KRP) of knowledge creation, transfer, integration and implementation as the basis, we examine the relationship between the KM practices and firm performance. We also examine the mediating role of innovation in this relationship. The study focused on tank farm firms operating in Nigeria’s oil and gas industry, with data generated from 486 respondents. Results from Structural Equation Modelling showed that innovation partially mediates the relationship between the KM practices that support KRP and firm performance. The study reveals sustainability of firm operations as the most impacted qualitative performance dimension. Overall, the Knowledge-Based View is substantiated, and innovation is confirmed as an important KM antecedent of firm performance. The results provide useful contributions to theory and practice.