Influence of Knowledge Management and Innovation on Organizational Performance Enhancement

https://doi.org/10.35912/simo.v6i2.4069
Published: Dec 24, 2024

Abstract:

Purpose: The purpose of this study is to analyze the effect of knowledge management on organizational performance with innovation as a mediating variable. This research aims to understand how effectively managing knowledge can foster innovation and ultimately enhance performance within healthcare organizations.

Research Methodology: This study employs a quantitative approach, with data collected from 100 employees at the Tanjung Agung Health Center. The sample was selected using the Slovin formula to ensure representativeness. Data were gathered through structured questionnaires and analyzed using SPSS software to test the relationships between knowledge management, innovation, and organizational performance.

Results: The results show that knowledge management significantly and positively affects both innovation and organizational performance. Furthermore, innovation functions as a mediating variable, meaning that better knowledge management leads to increased innovation, which subsequently improves organizational performance. These findings are particularly evident among employees at Tanjung Agung Health Center, suggesting the critical role of internal knowledge systems in driving institutional success.

Conclusion: The study concludes that effective knowledge management is essential in fostering innovation, which plays a key role in enhancing organizational performance. Promoting a culture of knowledge sharing and learning can yield long-term benefits for institutional development.

Limitation: The research was limited to a single health center and focused only on two variables, which restricts the generalizability of the findings across different settings or sectors.

Contribution: This study provides valuable insights into how innovation strengthens the link between knowledge management and performance, offering a strategic direction for organizational improvement, especially in healthcare settings.

Keywords:
1. Innovation
2. Knowledge Management
3. Organizational Performance
Authors:
1 . Hamdedi Hamdedi
2 . Yunita sari
3 . Mardiah Kenamon
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How to Cite
Hamdedi, H., sari, Y., & Kenamon, M. (2024). Influence of Knowledge Management and Innovation on Organizational Performance Enhancement. Studi Ilmu Manajemen Dan Organisasi, 6(2), 349–362. https://doi.org/10.35912/simo.v6i2.4069
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Issue & Section
Vol. 6 No. 2 (2025): Juli
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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  2. An, X., Deng, H., Chao, L., & Bai, W. (2014). Knowledge management in supporting collaborative innovation community capacity building. Journal of Knowledge Management, 18(3), 574-590.
  3. Antony, J. P., & Bhattacharyya, S. (2010). Measuring organizational performance and organizational excellence of SMEs–Part 2: an empirical study on SMEs in India. Measuring Business Excellence, 14(3), 42-52.
  4. Azzam, A. (2010). The effect of knowledge management on incremental product innovation in the Jordanian pharmaceutical industry. Unpublished MBA thesis, The University of Jordan, Jordan.
  5. Choo, C. W. (2013). Perspectives on managing knowledge in organizations Knowledge Organization and Classification in International Information Retrieval (pp. 205-220): Routledge.
  6. Chuen Huang, Y., & Shih, H. C. (2011). A new mode of learning organization. International Journal of Manpower, 32(5/6), 623-644.
  7. Debowski, S. (2006). Knowledge management.
  8. Du Plessis, M. (2007). The role of knowledge management in innovation. Journal of Knowledge Management, 11(4), 20-29.
  9. Edvardsson, B., & Tronvoll, B. (2013). A new conceptualization of service innovation grounded in S?D logic and service systems. International Journal of Quality and Service Sciences, 5(1), 19-31.
  10. Fadil, H., Singh, K., & Joseph, C. (2016). The influence of organizational innovation towards internal service quality in MBKS. Procedia-Social and Behavioral Sciences, 224, 317-324.
  11. George, A. A. (2021). Social and cultural influences and their implications for sustainable tourism: A case study of Trinidad & Tobago's tourism and the growth of the LGBTQ traveler segment. Journal of Sustainable Tourism and Entrepreneurship, 2(3), 147-157.
  12. Hafizurrachman, H., Trisnantoro, L., & Bachtiar, A. (2012). Kebijakan keperawatan berbasis kinerja di RSU Tangerang: Gadjah Mada University.
  13. Jyoti, J., Chahal, H., & Rani, A. (2017). Role of Organizational Learning and Innovation in between High-performance HR Practices and Business Performance: A Study of Telecommunication Sector.
  14. Khobai, H., Mugano, G., & Le Roux, P. (2017). The impact of electricity price on economic growth in South Africa. International journal of energy economics and policy, 7(1), 108-116.
  15. Khoe, & Tung, Y. (2018). Memahami knowledge management.
  16. Kotlers, P. (2009). Marketing Management.
  17. Lee, K. C., Lee, S., & Kang, I. W. (2005). KMPI: measuring knowledge management performance. Information & management, 42(3), 469-482.
  18. López-Nicolás, C., & Meroño-Cerdán, Á. L. (2011). Strategic knowledge management, innovation and performance. International Journal of Information Management, 31(6), 502-509.
  19. Mahsun, M. (2006). Pengukuran Kinerja Sektor Publik: Cetakan Pertama.
  20. Michael, A. (2006). A handbook of human resource management practice: Kogan page limited.
  21. Myllärniemi, J., Laihonen, H., Karppinen, H., & Seppänen, K. (2012). Knowledge management practices in healthcare services. Measuring Business Excellence, 16(4), 54-65.
  22. Ndoh, U. N., & Umbugadu, M. A. (2024). Multimedia instructional materials in teaching basic science concepts for students with hearing impairment. Journal of Social, Humanity, and Education, 4(3), 181-192.
  23. Nonaka, I., & Toyama, R. (2003). The knowledge-creating theory revisited: knowledge creation as a synthesizing process. Knowledge management research & practice, 1(1), 2-10.
  24. Noviyanti, T., & Mulyanto, A. D. (2015). Pengaruh Knowledge management Te Rhadap Inovasi, Implementasi Strategi Dan Kinerja Organisasi (Studi Pada Rs Lavalette Malang). Jurnal Ekonomi Bisnis, 20(1).
  25. Obeidat, B. Y., Al-Suradi, M. M., Masa’deh, R. e., & Tarhini, A. (2016). The impact of knowledge management on innovation: An empirical study on Jordanian consultancy firms. Management Research Review, 39(10), 1214-1238.
  26. Peterson, W., Gijsbers, G., & Wilks, M. (2003). An organizational performance assessment system for agricultural research organizations: concepts, methods, and procedures.
  27. Robbins, S. P., & Coulter, M. (2009). Manajemen.
  28. Sugiyono, S. (2016). Metode penelitian kuantitatif, kualitatif, R&D.
  29. Suhag, A. k., Solangi, S. R., Larik, R. S. A., Lakho, M. K., & Tagar, A. H. (2017). The relationship of innovation with organizational performance.
  30. Tether?, B. S. (2003). The sources and aims of innovation in services: variety between and within sectors. Economics of Innovation and new technology, 12(6), 481-505.
  31. Thalib, M. A., Kumadji, D., Edis, E., & Saikim, F. S. (2023). Refleksi Nilai Huyula di balik Praktik Akuntansi oleh Pengusaha Depot Air Minum. Goodwood Akuntansi dan Auditing Reviu, 2(1), 49-59.
  32. Townsend, K., & Wilkinson, A. (2010). Managing under pressure: HRM in hospitals. Human Resource Management Journal, 20(4), 332-338.
  33. Wibowo. (2017). Manajemen kinerja.
  34. Wiig, K. (1993). Knowledge management foundations: thinking about thinking-how people and organizations.
  35. Wu, I.-L., & Hu, Y.-P. (2018). Open innovation based knowledge management implementation: a mediating role of knowledge management design. Journal of Knowledge Management, 22(8), 1736-1756.
  36. Ye?il, S., & Kaya, A. (2012). The role of organizational culture on innovation capability: An empirical study. International Journal of Information Technology and Business Management, 6(1), 11-25.
  37. Yuliansyah, H. (2023). Value proposition design at training & consulting services company in sharia financial banking Lampung Province at CV. Acceleration Indonesia Juara. Journal of Multidisciplinary Academic Business Studies, 1(1), 99-113.