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The present study explores the mediating role of dynamic innovation
capabilities, focusing on the relationship between knowledge
management and innovativeness in IT entrepreneurial firms. A mixed
method approach was used where quantitative data was collected
from 200 IT entrepreneurial firms and an in-depth case study was
conducted for the qualitative study. The quantitative analysis indicated
that dynamic innovation capabilities fully mediate the relationship •
between knowledge management and innovativeness and it was
sorted in case studies. While contributing to the ongoing attempt at
explaining how knowledge management practices lead to innovations,
the study suggests that managers should pioneer in building dynamic
innovation capabilities in order to gain a competitive advantage through
innovativeness in a dynamic environment.
