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Purpose

The purpose of this study is to address the nature of knowledge quality, describe its dimensions, and create valid and reliable instruments to measure it. Knowledge quality is proposed as a second‐order factor model which includes three dimensions: intrinsic knowledge quality, contextual knowledge quality, and actionable knowledge quality. This study also aims to examine important antecedents to and an outcome of knowledge quality.

Design/methodology/approach

Data collected from 208 project teams were used to test measures of knowledge quality and to examine a proposed research framework by using LISREL for structural equation modeling.

Findings

Results support the claim that knowledge quality has three dimensions. The results also show that functional diversity, absorptive capacity, and knowledge networks are critical antecedents that positively impact knowledge quality, which in turn has an influence on innovation.

Research limitations/implications

The research framework enables academicians and practitioners to have important insights regarding the determinants of knowledge quality and its positive impact on innovation.

Practical implications

The valid and reliable instruments of knowledge quality provide a tool to analyze the strengths and weaknesses of intrinsic, contextual, and actionable knowledge quality. This study illustrates how firms can improve knowledge quality by integrating interdisciplinary knowledge.

Originality/values

This study identifies dimensions of knowledge quality and its antecedents and consequences.

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