INNOVATION AND KNOWLEDGE MANAGEMENT: A LITERATURE REVIEW AND RESEARCH FRAMEWORK

This paper discusses the relationship of knowledge creation process (KCP) and innovation also the role of organizational culture (OC) in this relationship. The controversial arguments in the literature regarding this relationship provoked this discussion. The paper covers the theoretical discussion on innovation and knowledge creation modes and formulates a research framework based on previous literature. The research argues that all four modes of knowledge creation (socialization, externalization, internalization and combination) are positively associated with product and process innovation. Furthermore, flexibility-oriented organizational culture moderates the relationship of KCP and innovation.