The Moderating Role of Knowledge Retention in the Relationship between Innovation Capability and Learning & Growth

Abstract

Purpose: Based on the general assumptions of the resource-based view and the organization knowledge conversion theory, the study assessed the interactions of innovation capability, knowledge retention, and learning & growth focusing on five Deposit Money Banks (DMBs) in Oyo State, Nigeria. Method: A survey-based approach to research with N=377 DMB employees at three management levels in Ibadan Oyo States, Nigeria, was studied. A moderated regression analysis was used to test the three-way hypotheses framed in the study. Findings: The results showed that innovation capability significantly influenced the learning & growth of DMBs investigated. Further analysis showed that knowledge retention enhanced the established influence of innovation capability on learning & growth to suggest a significant moderating effect. Conclusion: The study concluded that innovation capability and knowledge retention are critical success factors that improved the learning & growth of DMBs in Ibadan Oyo States, Nigeria. This findings align with expectations of the RBV which considered innovation capability and knowledge retention as vital intangible resources of a firm for achieving competitive superiority. The study recommended that the management of the selected DMBs in Ibadan Oyo State, Nigeria interested in achieving competitive advantage through learning & growth should invest significant resources to improve their innovation capability and knowledge retention infrastructure.