How Knowledge Management Capabilities Enhance Textile Firms’ Innovative Performance

The role of knowledge management capabilities and innovative performance within textile firms enhance the organization performance. The textile industry has become a critical component of the global economy and daily life. Consequently, an assessment of input utilization that considers innovation, technology, and efficacy is imperative. This study aims to adapt knowledge management capabilities and innovative performance within textile firms of Portugal. This study seeks to answer the two important questions: (1) Why Does Firm’s Need Knowledge Management Capabilities? (2) How It Influences Textile Firm’s Innovative Performance? According to findings the results reveals that there is a scarcity of scholarly investigations concerning the knowledge management capabilities and innovation performance of businesses operating in this industry. Through internal cooperation, organizations gain access to a vast array of tacit and explicit knowledge that exists within the organization. By strengthening internal engagement with the workforce, organizations gain knowledge of what, where, and to what extent information is stored within the organization. The potential for innovation to be stimulated within an organization exists through internal collaboration. There is a positive correlation between increased information exchange among employees and their greater capacity for innovation.