Knowledge Management Strategy as the Key Factor for Turkish Firms' Innovation in the Digital Era

The digital era is characterized by technological advancements that enhance the speed and breadth of information and knowledge turnover in businesses, markets, the economy, and society. The success of businesses in the digital era depends heavily on their access to sufficient knowledge and information about changes in the market and business environment. The main objective of this research is to investigate the impact of organizational knowledge management strategies on firms' innovation and absorptive capacities. Using data from 507 employees working in R&D departments of companies that produce white goods, this study aims to test the mediating role of absorptive and innovation capacities in the relationship between knowledge management strategy and firm's product innovation performance. Our results from Turkey confirmed the positive impact of organizational knowledge management strategy on firm's absorptive and innovation capacities, which in turn improves the firm's product innovation performance. © 1973-2011 IEEE.