Knowledge management capability and organizational performance: a moderated mediation model of environmental dynamism and opportunity recognition

Knowledge management in any organization is important in enhancing the organization’s performance. This study aims to explore the influence of knowledge management capability on organizational performance with the mediation role of opportunity recognition and the moderation effect of environmental dynamism.

This study used an effective and well-developed survey to collect data from 387 managers working in different service organizations in the Kingdom of Saudi Arabia. Further, SmartPLS software was used for data analysis.

The outcomes confirm that knowledge management capability is directly and indirectly (via opportunity recognition) related to organizational performance. Environmental dynamism moderates the linkage between knowledge management capability and opportunity recognition, as well as between opportunity recognition and organizational performance.

This study provides a valuable and novel managerial and theoretical approach for management to improve firm performance with the help of knowledge management capabilities, opportunity recognition, and environmental dynamism. The findings of this paper can be implemented not only in the service sector but also in the production sector. Future studies can use this conceptual framework in different countries with the current data. Moreover, other analytical approaches can be used to check the variability of these findings.

This study contributes to connecting research gaps in the literature and advancing insights into how knowledge management capabilities affect organizational performance. The study explores the mediating role of opportunity recognition and environmental dynamics as moderators between knowledge management capability and opportunity recognition and between opportunity recognition and organizational performance.