Service Innovations, Knowledge Management, Advance Technology and Organizational Performances

Abstract

The purpose of this paper is to examine the impacts of knowledge management and advance technology on organization performance through service innovation. A survey of 268 SMEs in the service industry was conducted. Partial least squares of structural equation modelling (PLS-SEM) was used to test the mediation role of the service innovation on the relationships between knowledge management, advance technology and the organizational performance. The results showed there were links between knowledge management and organizational performance. In addition, it was discovered that service innovation mediated the relationship between the knowledge management and cost and financial performance, and between advance technology and cost and financial performance. The paper shows a way forward of how to measures organisational performance in such a way that they are led from the development of innovation capability generated through knowledge management and the advance technology in the service industry.