The Role of Agile Project Management in Driving Innovation: Exploring the Impact of Knowledge Management and Organizational Culture

Abstract

The aim of this study is to analyse the impact of knowledge management (KM) on innovation performance, with agile project management (APM) coming in as the mediator and organizational culture (OC) as the moderator. Using dynamic capability theory, the paper put forward a conceptual model where innovation results from the combination of knowledge processes, agile execution, and a culture that provides support. The conclusions indicate a strong direct link between KM and innovation performance, pointing out that through proper knowledge practices organizations are able to increase their innovation capabilities. The mediation role of APM in this linkage was statistically confirmed, which means that the use of agile methods is one of the keys to unlocking the creative potential of knowledge. On the other hand, the moderator role of OC did not reach statistical significance, which means that the effect of culture could be different depending on contexts or industries. The article delivers theoretical insights and also points to some practical implications for doing business ‌‍‍‌better.