Organizational learning and knowledge management innovation are context- specific and they can influence SME’s technological capability effectively. We defined knowledge management innovation as a two-stage process: adoption and implementation of a managerial practice, process, or tool that is new to the firms and is intended to enhance the firms’ knowledge management efficiency. Then we constructed a conceptual model to discuss the relationship among organizational learning, knowledge management innovation and technological capability. We proposed that the effects of organizational learning were not only curvilinear but also differential across knowledge management innovation adoption and implementation process. The findings supported the hypotheses that (1) exploitative learning and exploratory learning had increasingly positive effects on knowledge management innovation; (2) knowledge management innovation had an inverted U relationship with technological capability; and (3) when exploitative learning was high, more knowledge management innovations were associated with better technological capability, but explorative innovation had insignificant moderating effects in knowledge management innovation implementation process.
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