The Mediating Role of KM Processes & Organizational Innovation

The purpose of this study was to examine the relationship among major variables that include organizational factors (OFs) Knowledge Management processes (KMP) organizational innovation (INO) and organizational performance (PER) in the public banks in Iran. In addition the roles of KMP and INO as mediators were investigated. The basic assumption of this study was that KMP is increased under the appropriate OFs that are mediated by KMP and later by INO. The findings of the structural model analyses determine that 61% of the variance in the KMP is explained by the joint influences of the OFs predictors 49% of the variance in the INO is accounted by the joint influences of the predictors of OFs and KMP. In addition 73% of the variance in the PER is accounted by the joint influences of the predictors of OFs KMP and INO. The result of overall structural model showed that the IT support variable of the OFs had the highest contribution toward the prediction of organizational performance and this is followed by the leadership and collaboration variables respectively.