THE ROLE OF INNOVATION AND KNOWLEDGE MANAGEMENT IN SUSTAINING COMPETITIVE ADVANTAGE: A LONGITUDINAL RESEARCH STUDY ACROSS GLOBAL ORGANIZATIONS

Abstract

This study investigates the interrelationship between innovation and knowledge management (KM) as fundamental drivers of sustainable competitive advantage in global organisations. Employing a quantitative longitudinal design, data were collected from secondary sources covering five diverse economies United States, Germany, Japan, India, and Brazil over the period 2019–2023. The integrated dataset combined indicators of innovation, knowledge, and competitiveness with key macroeconomic variables such as GDP growth, unemployment, inflation, and interest rates. Analyses conducted using Microsoft Excel revealed strong positive correlations between innovation, KM, and competitiveness, with regression results indicating that these two variables jointly explain nearly 80% of the variance in competitiveness. The findings confirm that innovation acts as a catalyst for differentiation and value creation, while KM functions as an enabler that amplifies innovation effectiveness through knowledge creation, sharing, and application. Moreover, the results highlight the moderating role of digital transformation and dynamic capabilities in enhancing adaptability and long-term performance. The study extends the Resource-Based View (RBV) and Knowledge-Based View (KBV) by providing longitudinal evidence on how innovation–knowledge integration sustains competitiveness. These insights offer strategic guidance for organizations aiming to institutionalize knowledge-driven innovation and achieve resilient growth in dynamic global markets.