Knowledge Management Strategy and Innovation Capacity of Nigerian Manufacturing Firms

This study investigates the relationship between knowledge management strategy and innovation capacity in manufacturing firms operating in Nigeria, with cases from the South West and North Central geopolitical zones. As Nigerian manufacturers navigate the dual pressures of import competition and input cost inflation, knowledge management has emerged as a strategic tool for innovation-driven competitiveness. The research employs a descriptive survey design, targeting research directors, production managers, and human resource heads of eighteen manufacturing firms in Lagos, Kwara, and Kogi states. A total of 95 respondents were selected through purposive sampling. Structured questionnaires measuring knowledge creation, capture, storage, and transfer practices were administered alongside innovation output indicators. Data were analyzed using multiple regression. Findings indicate that firms with formalized knowledge management systems demonstrate significantly higher innovation output rates, measured by new product introductions and process improvement frequencies, compared to those without such systems. Communities of practice and cross-functional knowledge-sharing workshops are identified as the most effective knowledge transfer mechanisms in the manufacturing context. The study concludes that Nigerian manufacturing firms must invest deliberately in knowledge management infrastructure to build sustainable innovation capacity. Keywords: knowledge management, innovation capacity, manufacturing firms, Nigeria, organizational learning.