Analyzing the Impact of Knowledge Management on Technological Innovation: An Empirical Study of Electrical and Electronics Industry in Malaysia

Knowledge and technology have gradually been regarded as a strategic asset and the key sources of competitive advantage for growing number of organizations. Due to the acceleration of the global economy, the rapid progress of information technology, and the various expectations of customers, today’s business environment is rapidly changing and competition has intensified. By looking to this, the drive of this empirical study is to assess the impact of knowledge management on technological innovation. This research was conducted with a sample of 287 electrical and electronics (E&E) companies from Malaysia. A technique of partial least square (PLS) properties of structural equation modeling (SEM) is used to test the obtained data. The findings indicate a significant relationship between knowledge management and technological innovation. Therefore, this study provides understanding the importance of knowledge management on technological innovation. This study is then contributing theoretically, managerially and methodologically with an increase of understanding on the importance of knowledge management on technological innovation in Malaysia’s E&E industry.