Impact of Knowledge Management Practices on Innovation Performance

The main purpose of this article is to study the impact of knowledge management practices (KMPs) on innovation performance of an Iranian leading private bank known as Bank Pasargad. To assess the impact of independent factor (KMP) on the dependent factor (innovation performance), a questionnaire containing 52 questions is designed and distributed among 237 experts and managers of the Iranian Bank Pasargad headquarters. Exploratory and confirmatory factor analyses are used to analyze the research data. The proposed conceptual model of the research is studied using the structural equation modeling technique. Results obtained from testing the main hypothesis shows that KMPs positively and significantly affect innovation performance. Also, scrutiny of the subhypotheses revealed that KMP subconstructs, namely, top management measures, strategic knowledge management, knowledge-driven employment, knowledge-driven training, knowledge-driven performance evaluation based on IT, and knowledge sharing using IT, positively and significantly affect innovation performance in the surveyed bank.