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Relationship Between Knowledge Management and Innovation
Abstract
Successful business operation depends on several factors. Among these factors knowledge management and innovation are extremely important business areas. The aim of this theoretical study is to introduce how these two models work together and how their relationship reinforces the chance for success. Relying on secondary data analysis and literature review, the authors prove that the classical innovation model can be a part of this relationship together with the organizational innovation where the human resource comes to focus. The logic of system building of knowledge management emphasizes that the path leads from the attainment of innovation knowledge to the evaluation of utilization. This study reviews the steps of the two business models and highlights the most important relationships in a new model linking the appropriate phases. The second part of this paper shows the connection between frugal innovation and knowledge management, and their theoretical significance and practical adaptability.
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