The main purpose of this paper is to explore the effect of knowledge accumulation capability on organizational innovation. This study also attempts to find if interaction between external environment or organizational culture and knowledge accumulation ability will influence organizational innovation.
A quantitative research design was employed. A total of 1,000 questionnaires were mailed out and received 129 valid replies.
The research results indicate that the capability to obtain knowledge can positively and significantly affect knowledge administrative and technical innovation. Knowledge expansion capability can positively and significantly affect administrative innovation. In addition, external environment and organizational culture have significant interaction effects with knowledge accumulation capability on organizational innovation.
This research discussed only some organizational layers like knowledge accumulation, external environment and organizational culture without any further research efforts aimed at any other facets.
With the rapid change of markets and the intense industry competition, business management is deeply affected by any change in the external environment.
Because there is no existing literature on the use of external environment and organizational culture as moderators to explore the effect of knowledge accumulation capability on organizational innovation, this paper provides a basis for future studies that examine the relationship between these factors.
