Linking Digital Knowledge Management Practices to Organizational Performance: A Serial Mediation Perspective

In today’s rapidly evolving economy, organizations increasingly rely on digital knowledge management (DKM) to fuel innovation and improve performance. However, limited research has explored the sequential mechanisms through which DKM practices generate value. This study addresses this gap by proposing and empirically testing a serial mediation model where innovation serves as the central conduit linking three DKM components—(i) Digital Knowledge Storage (DKNST), (ii) Digital Knowledge-Sharing (DKNSH), and (iii) Knowledge Utilization Through Digital Technologies (KNUTDTs)—to Perceived Organizational Performance (PERPOP). Drawing on the Knowledge-Based View (KBV), Resource-Based View (RBV), and Organizational Learning Theory (OLT), a multi-firm online organizational survey was conducted using data collected from 245 respondents across 127 service organizations in Kuwait. Validated instruments were used, and analysis involved Exploratory and Confirmatory Factor Analysis, followed by Structural Equation Modeling (SEM). To the best of our knowledge, this is the first study to test the complete digital knowledge lifecycle, beginning from archival storage to innovation and organizational performance. Results reveal that DKM practices do not directly impact performance; instead, their effects are fully mediated by innovation. Four distinct mediation pathways were confirmed, underscoring the importance of integrating digital storage, sharing, and utilization into a unified, innovation-driven process. This research advances the conceptualization of DKM as a dynamic process and highlights innovation as the pivotal mechanism for translating digital knowledge into performance outcomes.