IMPACT OF KNOWLEDGE MANAGEMENT CAPABILITY ON ORGANIZATIONAL AGILITY: THE MEDIATING ROLE OF ABSORPTIVE CAPACITY AND THE MODERATING ROLE OF RISK-TAKING TOLERANCE

Abstract

This study examines the relationship between knowledge management capability, absorptive capacity, and organizational agility, and further investigates how risk-taking tolerance shapes the effectiveness of this relationship. In increasingly dynamic and uncertain environments, organizational sustainability and competitiveness depend largely on firms’ ability to acquire, integrate, and apply knowledge in ways that support rapid and flexible responses. While the importance of knowledge management and organizational learning for adaptive performance is well recognized, less is known about the internal mechanisms through which knowledge resources are transformed into agile behavior. Building on a learning-based perspective, this study explores absorptive capacity as the key process linking knowledge management capability to organizational agility, while also considering the role of risk orientation as a contextual condition influencing this process. Based on quantitative data collected through a cross-sectional survey and analyzed using structural equation modeling, the findings indicate that organizations with stronger knowledge management practices develop higher levels of absorptive capacity, which in turn enhances organizational agility. The results further suggest that organizations characterized by higher risk-taking tolerance are better able to convert learned knowledge into agile action. These findings contribute to the understanding of agility as a learning-driven capability and offer insights for practitioners seeking to build adaptive, resilient, and knowledge-based organizations.