Is improvisation a mediating link driving knowledge management processes towards innovativeness in Indian IT firms?

Purpose - This study aims to examine the mediating influence of organisational improvisation (OI) in the relationship between knowledge management (KM) processes and innovativeness. It explores the role of sharing, creating, acquiring and storing knowledge in managing uncertainties through developing improvisation capability. In addition, it examines whether KM–improvisation relationship contributes to higher innovativeness in information technology (IT) companies in India. Design/methodology/approach - This study derived a conceptual framework based on a critical review of literature. The data were collected from 231 employees using an online questionnaire from listed Indian IT services and consulting companies. The data reliability, validity and biases were checked, and hypotheses were tested using path analysis in structural equation modelling using software such as SPSS and AMOS. Findings - All KM processes, except acquisition, had a positive and significant relationship with innovativeness and OI. OI was positively related to innovativeness. Mediation results show that OI mediated the relationship between knowledge sharing–creation, knowledge base and innovativeness. OI did not mediate between knowledge acquisition and innovativeness. The results indicate that sharing, creating and storing knowledge builds an organisation’s ability to improvise and innovate in a dynamic environment. Research limitations/implications - A cross-sectional design limits its ability to derive a cause-effect relationship. Survey methods are prone to common method bias. Future studies can adopt a longitudinal approach with objective measures. Moreover, the impact of pertinent factors, such as experimentative culture; HR practices that reward and support improvisational behaviour and exposure to organisational routines/culture can be evaluated. Practical implications - This study suggests that implementing KM processes of sharing, creating and storing knowledge are crucial to build improvisation and innovation capabilities to sustain in volatile market, and enhance employee innovative work performance and creativity, while gaining external knowledge is not beneficial in the moment of improvisation. Originality/value - This study contributes to the literature being one of the first empirical research connecting KM processes, improvisation and innovation. This study adds to the knowledge-based innovation literature by presenting improvisation as a mediating link between KM processes and organisational innovativeness. This study extends the understanding of how organisations can harness knowledge to innovate in uncertain times. It provides evidence regarding the role of KM processes and capabilities to improvise innovation in the context of an emerging economy.