The impact of knowledge management capabilities on innovation in entrepreneurial companies in Jordan

Purpose The purpose of this research is to identify and clarify the important variables in knowledge management capabilities that affect product/service innovation in entrepreneurial companies in Jordan. Design/methodology/approach A five-point Likert scale questionnaire was designed for measuring knowledge-based (infrastructural and dynamic) capabilities and product/service innovation in entrepreneurial companies in Jordan that specialized in information and communication technology. A questionnaire was distributed to 297 individuals in 40 companies, and only 202 questionnaires were completely filled and returned by the entrepreneurs at King Hussein Business Park and Al Hassan Business Park. Structural equation modeling was applied to statistically test the research hypotheses. Findings The research findings showed that knowledge-based infrastructural capabilities are a prerequisite for knowledge-based dynamic capabilities. On the other hand, knowledge combination capabilities have a statistically significant mediating effect between knowledge based infrastructural capabilities and product/service innovation. Originality/value This research contributes to the literature by studying and investigating the key variables in knowledge management that affect product/service innovation and by providing a comprehensive understanding of the knowledge management capabilities and innovation in entrepreneurial companies. This research provides academicians with a framework for better understanding of the different factors of knowledge management capabilities and how they affect product/service innovation.