Investigating the Relationship Between Knowledge Management Processes and Organizational Performance The Mediating Effect of Organizational Innovation

IntroductionJordanian Telecommunication and information technology organizations as other sectors in the industries are lived in a dynamic business environment and influenced by the events that happen around (Ben Zaied et al., 2015), and so they are exposed to pressures to improve product or service quality which is presented to the customers in addition to reduce the cost and to compete other products with high quality. However, Scholars addressed the knowledge management, organizational innovation and organizational performance relationship in deferent ways. To this end Tubigi and Alshawi, (2015) indicated the impact of knowledge management processes on organizational performance. Similarly, Al-Hakm and Hassan (2012) examined the impact of knowledge management on the excellence of the organizational performance. Furthermore, studies revealed a positive relationship between knowledge management and innovations in the organizations, (Noruzy et al., 2013). Moreover, Al-Faris (2010) indicated the relationship between knowledge management and total quality management in addition to an effect to this integration in the organizations' performance. Nevertheless, Kharabsheh et al., (2012) adop ted knowledge management practices in improving the company's operational and financial performance . Meanwhile Marques et al., (2014) examined the effect of strategic knowledge management and innovation on the organization's performance.Likewise, Tseng and Lee (2014). indicated the effect of knowledge management capabilities on organizational performance. Additionally, Rajneesh and Kaur, (2014) realized that knowledge management affect organizational performance in terms of profitability, sales, operational and financial efficiency, shareholders' satisfaction and competitive situation. Furthermore, Darroch, (2005) argued that an organization that has high capabilities to manage its knowledge will use its resources more efficiently and will be more innovative leading to improve its performance. However, Scholars in marketing field also addressed this interrelationship. According to Holm and Sharma (2006), there is a direct and indirect impact of marketing knowledge on perceived performance. To this end, Hanvanich et al.,( 2003) argued that Marketing innovation through the assistance of marketing knowledge can uncover hidden demand or create new demand. As marketing innovation can be created through interaction between tacit and explicit marketing knowledge within and outside organizational boundaries, developing new market innovation may flourish new marketing knowledge. Similarly, scholars hypothesized that marketing knowledge is a trigger for marketing innovation and marketing performance (Holm and Sharma, 2006; Akroush and Al-Mohammad, 2010). On contrary, Alrubaiee et al., (2013) study result indicated appositive effect of marketing innovation on marketing knowledgeof Jordanian telecommunications companies . Result also indicated the indirect effect of marketing innovation on marketing performance through marketing knowledge as mediator. However, these results indicate the dual role of marketing innovation as both direct contributor to marketing performance and as indirect contributor through marketing knowledge. Therefore, it washypothesized that the relationship between marketing knowledge and marketing innovation is mutual (Alrubaiee et al., (2013). However, 1n the context of Jordan and despite interest shown by business and academic domains, research into Knowledge Management is still lacking (Akroush and Al-Mohammad, 2010). Moreover, while the empirical evidence is not, unequivocal, the generalizability of its impact required further research. Therefore, further understanding of Knowledge Management implementation and its relationship to Organizational Innovation and Organizational Performance in Jordanian Telecommunication and information technology organizations is required. Hence, research studying the association between these concepts is considered to be worthwhile, in order to justify interest and investments in such concept. …