Knowledge management and business performance: does innovation matter?

Abstract

The purpose of this study was to assess the mediating effect of innovation in the relationship between knowledge management and business performance of SMEs in Rwanda. The study used a cross sectional survey design to collect the data on a sample of 250 SMEs and bootstrap method was used to carry out mediation analysis. The findings revealed that innovation fully mediates the relationship between knowledge management and business performance of SMEs. The paper contributes to scholarly debate on the mediating role of innovation on the relationship between knowledge management and business performance of SMEs by providing evidence from a developing country. The results may help business owners of SMEs to adopt innovation as a conduit for knowledge management to boost their business performance