Knowledge Management and Employee Agility in Supporting Organizational Innovation and Sustainable Competitive Advantage in Digital Transformation
DOI:
https://doi.org/10.61132/jpbi.v3i3.1618Keywords:
Digital Transformation, Employee Agility, Knowledge Management, Organizational Innovation, Sustainable Competitive AdvantageAbstract
Digital transformation requires organizations to integrate knowledge-based capabilities with adaptable employee behavior to support innovation and long-term competitiveness. This study examines the effects of knowledge management and employee agility on sustainable competitive advantage through the mediating role of organizational innovation. A quantitative explanatory design was employed involving 200 employees from organizations undergoing digital transformation. Respondents were selected using purposive sampling based on their involvement in digital work processes, while data were collected through a five-point Likert-scale questionnaire. The proposed relationships were analyzed using Partial Least Squares Structural Equation Modeling. The findings show that knowledge management and employee agility positively strengthen organizational innovation and sustainable competitive advantage. Employee agility demonstrates a slightly stronger contribution to organizational innovation, while organizational innovation provides the strongest contribution to sustainable competitive advantage. Organizational innovation also partially mediates the effects of knowledge management and employee agility on sustainable competitive advantage. These findings imply that organizations should improve knowledge-sharing systems, digital competencies, adaptive work practices, and employee participation in innovation. Integrating knowledge-based capabilities, agile employees, and continuous innovation can help organizations sustain competitiveness throughout digital transformation.
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