Abstract:
Today's firms are facing rapid changes in the business environment. One of the biggest global challenges that faced industrial firms is how to win and create competitive advantage. The purpose of this study is to investigate the effect of knowledge management processes on competitive advantage through innovation capabilities in the industrial firms operating in Khartoum State. Based on literature review, RBV theory and knowledge-based theory the model study were built, the study used descriptive methods, primary data were obtained through a questionnaire survey distributed 300 and returned 207questionnaire rate with 70%. The study used equation structural modeling (ESM). The study results showed that a positive and partial relationship between knowledge management processes and innovation capabilities on competitive advantage, innovation capabilities partial mediate the relationship between knowledge management processes and competitive advantage, while information technology is moderate the relationship between knowledge management processes and innovation capabilities. Based on study’s results, the discussion of the findings, the theoretical and practical implications for study.
