Improve company performance through knowledge management capabilities, strategic flexibility and strategic agility; The mediating role of business model innovation

The purpose of this study is to investigate the effect of knowledge management capabilities, flexibility and strategic agility with the mediating role of business model innovation on firm performance.

The objective of this study is practical and it is descriptive-survey in nature. The statistical population of it is Iranian insurance firms. The sample size was determined to be 422 people by the use of G-Power software version 3.1. questionnaire knowledge management capabilities, Akram et al. (2018) questionnaire was used, to assess strategic flexibility, Miroshnichenko et al. (2020) questionnaire was used, to assess strategic agility, Omoush (2020) questionnaire, business model innovation from Asemokha et al. (2020) and to assess firm performance, Venkatraman & Ramanujam (1986) questionnaire was used. The validity and reliability of the research tool were confirmed and the data were analyzed via Smart PLS software version 3.

Findings showed that knowledge management capabilities, strategic flexibility and agility, directly and indirectly through business model innovation, have a positive effect on firm performance.

Creating and applying knowledge management capabilities, strategic flexibility and strategic agility simultaneously, via business model innovation, not only improve firm performance, but also help managers learn how to improve firm performance in dynamic environments.