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

Abstract

Innovation performance is a vital determinant of organizational competitiveness, particularly in environments marked by rapid technological change and uncertainty. This study examines how knowledge management (KM) influences innovation performance, with agile project management (APM) acting as a mediator and organizational culture (OC) serving as a moderator. Drawing on dynamic capability’s theory, the research proposes an integrative framework in which innovation emerges from the interplay between knowledge processes, agile execution, and supportive cultural contexts. A quantitative, cross-sectional research design was applied, targeting engineers in the construction sector of Punjab, Pakistan. Engineers were selected due to their dual roles as knowledge creators and project executors. Using stratified random sampling, data were collected from 376 respondents through a structured questionnaire. SmartPLS 4.0 was employed to conduct structural equation modeling (SEM), assessing the reliability, validity, and hypothesized relationships within the model. The empirical results revealed a significant direct relationship between KM and innovation performance, indicating that effective knowledge practices enhance an organization’s ability to innovate. APM was found to significantly mediate this relationship, demonstrating that agile methodologies facilitate the transformation of knowledge into innovative outputs. However, the moderating effect of OC was not statistically significant, suggesting that cultural influence may vary across contexts or industries. The study offers both theoretical and practical contributions.