Research on the Mechanism of Knowledge Management in Enhancing Enterprise Innovation Capability

In the era of the knowledge economy, innovation has become key for enterprises to maintain competitive advantage. Knowledge management, as a theoretical method for systematically managing enterprise intellectual capital, plays an important role in promoting innovation. This study deeply explores the influence mechanism of knowledge management on enterprise innovation capability. The research analyzes how core processes such as knowledge acquisition, knowledge sharing, knowledge application, and knowledge creation promote enterprise innovation activities. The study proposes that effective knowledge management can theoretically accelerate knowledge flow, promote cross-departmental collaboration, and stimulate employee creativity, thereby improving the efficiency and quality of enterprise innovation. Especially in complex and dynamic market environments, knowledge management theory provides a framework for enterprises to respond quickly to changes and achieve continuous innovation. However, the research also points out that the effect of knowledge management is theoretically influenced by factors such as organizational culture, leadership style, and incentive mechanisms. Based on these analyses, this study proposes strategic suggestions for optimizing knowledge management practices to enhance enterprise innovation capability, providing theoretical guidance for enterprises to formulate effective strategies in knowledge-driven innovation competition.