As today‘s economy is confronted by increasing technological complexity, globalization, economic uncertainty, environmental concerns, dynamic and sometimes unpredictable social environment challenges, the ability to respond innovatively becomes a critical factor for the survival and success of economy and organizations. Since knowledge plays an invaluable role in innovation management, companies are forced to explore new sources and learn to exploit their existing resources of knowledge. Scholars and managers increasingly investigate knowledge management trying to better comprehend how to facilitate innovation opportunities and abilities. In response, this chapter aims to further the understanding of knowledge management (KM) association with organization’s innovation performance and its significance for the development of innovation. The study reviews the empirical evidence on how various knowledge management practices impact innovation performance, addresses the research gaps and trends. Based on the extensive literature analysis, the opportunities are highlighted for organizations that strive to increase their capacity to innovate by building ambidexterous knowledge management potential.
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