Innovation in Organizations

Abstract

This article reviews the role of organizational learning and knowledge management in innovation. An extensive review of past literature hints that knowledge, although a very strategic resource, is not easy to manage. Explicit knowledge can be stored in databases or documents but implicit knowledge resides in peoples’, brains. It is the management of this knowledge which poses a bigger challenge for most organizations. Past research mentions that implicit knowledge can be managed indirectly by managing various factors which contribute to an organization's culture, structure, technology, and leadership. A preliminary model has been proposed highlighting the role of organizational learning and knowledge management in innovation. The model high-lights the importance of a flexible and adaptive organization structure, a culture of trust and knowledge sharing, a strong technological network and a committed leadership to promote knowledge development and learning in the organization which is a prerequisite for innovation and creation of new knowledge. The article in addition to providing a detailed narrative of literature highlighting the importance of the various factors identified in the model, also gives practical implications and directions for future research in the area.