The Impact of Knowledge Management Infrastructure Capabilities on Business Intelligence with Mediatory role of Open Innovation in Manufacturing SMEs

Developing and maintaining a competitive advantage for companies is a critical topic and business intelligence is one of the key factors towards this goal, in business competitive environment. Present study seeks to investigate the effect of KM capabilities on business intelligence with mediatory role of open innovation. Sample size determined 90 persons by Partial Least Squares technique which chosen randomly. Data collected by questionnaire, which its reliability investigated by Cronbach’s Alpha and Composite Reliability, and analyzed by SPSS and SmartPLS based on path analysis with partial last squares approach in structural equations modelling to test hypothesis. Testing research hypotheses using path analysis method with partial least squares approach in structural equation modeling shows that between open innovation and business intelligence has a positive and significant relationship. In addition, knowledge management infrastructure capabilities has a positive and significant effect on business intelligence directly and indirectly. Moreover, about one third of the total effect of Knowledge management infrastructure capability on business intelligence is indirectly explained by open innovation.