Knowledge management driven firm performance: the roles of business process capabilities and organizational learning

2014 ◽  
Vol 18 (6) ◽  
pp. 1141-1164 ◽  
Author(s):  
Ing-Long Wu ◽  
Jian-Liang Chen

Purpose – This paper aims at defining a model to properly evaluate knowledge management (KM) value. Empirical studies have found little or no improvement in organizational performance despite large KM investments. Design/methodology/approach – The KM-driven performances are rooted in knowledge resources based on the knowledge-based view. Further, the KM-driven performances are mediated by business process capabilities. Organizational learning is critically complementary to KM for being a moderator to knowledge resources. A model was proposed for defining the performance with the relationships between these issues. A survey was conducted for collecting empirical data. Partial least squares was used for path analysis. Findings – Knowledge resources lay a foundation on the KM-driven performance through the mediator of business process capabilities. Specifically, knowledge assets and process capabilities are two different but relevant drivers in a value creation process. The findings particularly provide evidence to explain the knowledge-based view and the mediator of business process capabilities. Practical implications – While an organization owns important knowledge resources in the industry, it should dedicate its effort to the improvement of business process capabilities for well-achieving final performance. The KM-driven performance should be considered for both financial and non-financial indicators in a complementary manner. Originality/value – Extant theories may provide inadequate methods to evaluate KM-enabled performance. This study attempted to define an effective model for this issue. This model empirically demonstrated its capability to work on this issue.

VINE ◽  
2015 ◽  
Vol 45 (3) ◽  
pp. 420-445 ◽  
Author(s):  
Rouhollah Bagheri ◽  
Mohhamad Reza Hamidizadeh ◽  
Parisa Sabbagh

Purpose – The current study aims to investigate the existing relationship between knowledge management (KM) infrastructures, KM process capabilities, creative organizational learning (OL) and organizational performance. Design/methodology/approach – Statistical population includes executives of knowledge-based companies in Tehran Science and Technology Park of Iran. The 68 questionnaires were distributed among the census, of which 60 questionnaires were completed correctly. The research data were analyzed by SPSS and PLS software. The unit of analysis is a company that has adopted a knowledge management system (KMS). Target population of the research consisted of 85 top managers of knowledge-based companies in Tehran Science and Technology Park of Iran (N = 85). Random sampling method was applied in this study, and 71 top managers were considered as the statistical sample based on the “Morgan Table”. One standard five-point Likert questionnaire was adopted and distributed between top managers in the park; 62 questionnaires were returned, among which 60 were statistically investigated. The structural relations among variables were tested using the partial least squares method. Findings – This study shows that the KM processes can mediate between creative OL and factors in the KM infrastructure. The results of the study demonstrate that KM process capabilities have the most crucial role in creative OL. The results indicate a significant influence of the infrastructure capabilities on the process capabilities, also the impacts of KM process capabilities on creative OL and the impacts of creative OL on organizational performance was confirmed. Research limitations/implications – Using a holistic view of the KM performance framework, this study has provided insights to KM for researchers because it explains the integrated aspects of KM performance by examining the relationships between the KM infrastructure, knowledge process capabilities, and organizational outcomes. Previous studies on KM have been fragmented because they only consider some aspects of KM performance rather than using a holistic view of the KM performance framework: they have examined the relationship between one or two facets of KM enablers and process capability, or between KM process capabilities and organizational performance. Practical implications – In order to manage rapid change and global competition in business environments, knowledge workers should create new business opportunities and continuously question what and how they can contribute to these chances. Organizational KMS should support the learning processes of their knowledge workers. Social implications – The continuous learning and experiments are necessary in order to produce new ideas and products: it is critical to emphasize the importance of a KM infrastructure that supports and encourages learning in organizations. The creative learning in turn affects organizational performance indicating that without learning, organizations cannot overcome the boundary of old business practices and adjust to change in environments. Originality/value – Previous researches did not appraise the effect of KM and its capabilities on organizational performance, and the specific influence of creative OL was disregarded. The present study demonstrates the mechanism of KM effect on organizational performance and describes the comprehensive dimensions of KM performance.


2020 ◽  
Vol 12 (23) ◽  
pp. 10061
Author(s):  
Mirna Kordab ◽  
Jurgita Raudeliūnienė ◽  
Ieva Meidutė-Kavaliauskienė

Organizations operating in the intensive knowledge-based sector seek efficient management approaches and sustainable development practices to perform efficiently in the dynamic business environment. Knowledge management practice and organizational learning are significant factors in order to achieve sustainable organizational performance in a rapidly changing business environment. Based on the scientific literature analysis, there is still a lack of evidence related to the mediating role of the whole knowledge management cycle, including the five knowledge management processes (knowledge acquisition, creation, storage, sharing, and application) in the relationship between organizational learning and sustainable organizational performance for organizations operating in intensive knowledge-based sectors. This study aimed to examine the impact of the whole knowledge management cycle on the relationship between organizational learning and sustainable organizational performance in intensive knowledge-based sectors, specifically the audit and consulting companies in the Middle East region. Systematic scientific literature analysis, expert evaluation (structured questionnaire), and structural equation modeling (SEM) technique were used to develop and verify the research model. Data was collected through a structured questionnaire distributed among auditing experts working in a knowledge-based sector—audit and consulting companies in the Middle East region. The research results supported the hypotheses stating that organizational learning positively affects knowledge acquisition, storage, sharing, application processes, and sustainable organizational performance. However, the results verified that organizational learning has an insignificant impact on the Middle Eastern audit and consulting companies’ knowledge creation process.


2019 ◽  
Vol 43 (1) ◽  
pp. 113-132 ◽  
Author(s):  
Kaveh Asiaei ◽  
Nick Bontis

Purpose This paper aims to tie together insights from the body of research on knowledge management (KM) and management accounting control systems to propose a conceptual model in which performance measurement systems (PMS) can play a role in translating knowledge resources into enhanced performance. Design/methodology/approach The underlying assumption of the “fit-as-mediation” approach signifies that knowledge features can play a role in the determination of the structure and implementation of particular managerial processes and this, in turn, may support information processing and lead to desirable results within organizations. Findings Synthesizing theory from performance measurement and the knowledge-based view of the firm, the paper’s analysis and discussions elucidate how the implementation of an overarching PMS, i.e. diversity of measurement, could translate the knowledge-related factors, i.e. knowledge resources and knowledge process capabilities, into enhanced performance. In particular, the proposed model shows that a comprehensive PMS plays an intervening role between KM and organizational performance. Research limitations/implications The proposed model may inspire a new research agenda to show how knowledge initiatives are managed and measured in organizations and how they are properly aligned with specific managerial processes to deliver real value. Practical implications Drawing upon the conceptualized associations among KM, PMS and organizational performance, this paper recommends some practical guidelines by highlighting the importance of PMS whereby organizations may reap maximum benefit from their KM initiatives. Originality/value This paper sheds new light on the links between KM and organizational performance, and it appears to be the first study to propose an intervening effect of PMS between KM and organizational performance.


2019 ◽  
Vol 72 (1) ◽  
pp. 112-129 ◽  
Author(s):  
Umar Farooq Sahibzada ◽  
Jianfeng Cai ◽  
Khawaja Fawad Latif ◽  
Hassam Farooq Sahibzada

Purpose Drawing on the knowledge-based view, the purpose of this paper is to investigate the interrelationship between Knowledge Management (KM) processes, Knowledge Worker Satisfaction (KWS) and Organizational Performance (OP). Additionally, the study further seeks to identify the combinations of KM processes and KWS dimensions that can lead to enhanced OP. Design/methodology/approach Data were collected from 248 academics and administration employees of Higher Education Institutions (HEIs). The relationships were tested using SmartPLS 3.2.7. The study also employed fuzzy set Qualitative Comparative Analysis (fsQCA) for examining configurational paths. Findings The results of the study revealed that KM processes significantly affect KWS and KWS enhances OP in HEIs. Based on fsQCA, the results revealed multiple configurational paths to improved OP. Originality/value There is significant lack of research that ascertains the inter-relationship between KM processes, KWS, and OP. This is one of the initial studies that examines the relationship of KM processes, KWS, and OP in HEI’s. From a methodological perspective, the study contributes by combining symmetric and asymmetric statistical tools in KM literature. fsQCA helps to understand the interactions that might not be immediately obvious through traditional symmetric methods.


2015 ◽  
Vol 27 (6) ◽  
pp. 1233-1253 ◽  
Author(s):  
Azilah Kasim

Purpose – The paper aims to discuss the link or relationship between environmental management system (EMS) adoptions with organization learning (OL). It postulates that EMS adoption has the potential to catalyze organizational learning in hotels to make them more dynamic and competitive. Design/methodology/approach – The paper reviewed the literature to link the purpose and steps involved in an EMS adoption with the benefit of managing organizational knowledge and OL. It also uses the literature to identify phases of learning in EMS adoption and the level of employees exposed to the learning. Findings – There are two reasons why more hotels should not be hesitant to adopt EMS: flexibility – EMS does not dictate the level of environmental performance a firm should achieve, thus giving hotel firms the flexibility to determine the level of sophistication of their environmental management; and the building of company’s dynamism – EMS facilitates organizational learning, leading to enhanced organizational performance. Research limitations/implications – The proposed link between EMS implementation with OL in this paper can only be proven by means of empirical studies. Practical implications – Understanding the OL value of EMS adoption may persuade more hotel practitioners to adopt it. Originality/value – This paper proposes a link between a systematic approach to managing environmental responsibility with knowledge management in hotels.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Zgrzywa-Ziemak ◽  
Katarzyna Walecka-Jankowska

Purpose The purpose of this study is to investigate the relationship between organizational learning (OL) and business sustainability (BS) and to carry out its empirical examination. Design/methodology/approach Extensive literature research was carried out. Then, an empirical study was conducted in 694 Polish and Danish companies. Two phenomena related to OL were adopted: OL processes and organizational learning capability (OLC). BS was examined through the concept of sustainable performance (SP). Research models were tested using structural equation modeling. Findings The empirical studies have shown a positive, statistically significant relationship between OL and BS. The research supports the view that the intensification of the OL processes is substantial for BS, whereas the OLC concept is less relevant to the development of BS. The effect of OL on total SP was stronger than on any SP dimension. OL supports the synergies of the results obtained by the organization for the benefit of BS. Research limitations/implications The model verification is based on the samples from two countries, and, therefore, the hypothesis requires further verification in different business contexts. In addition, there are different factors influencing BS, which have not been included in the research and should be analyzed in the future. Originality/value An in-depth, critical literature analysis shows that the theoretical foundation of the role of OL in shaping BS is fragmented and poorly empirically verified. The value of this paper is the presentation of large-scale empirical studies comparing the relationship between BS and two phenomena: OLC and the OL processes. The results obtained in the course of the research open up new research directions with respect to both the relationship between OL and BS as well as between OL and organizational performance.


2017 ◽  
Vol 36 (7) ◽  
pp. 846-858 ◽  
Author(s):  
Wahda

Purpose The purpose of this paper is to determine the mediating effect of knowledge management (KM) on organizational learning culture (OLC) in the context of organizational performance of the State Organization for Higher Education (PTN) in South Sulawesi. Design/methodology/approach The unit of analysis in this study includes a study program of exact sciences, non-exact science scholars, as well as the study population. Sample size is 138 units/respondents. Analysis method used to test the research hypothesis is partial least square (PLS) by employing XLSTAT. Findings The results of analysis show that the exact science, non-exact science, and exact-non-exact OLC have a significant positive effect on KM. This means that when an OLC is strongly implanted, the KM will be well implemented. Therefore, to carry out the KM well, it is imperative that there should be a suitable organizational culture. In this case, an OLC has the biggest effect on achieving organizational performance. Originality/value KM in organizations has been researched by performing case studies on sub-companies of a selected corporation in the city of Esfahan and on OLC in a public service organization of Pakistan. This paper claims originality on the basis of the following: variables used are mediating variables of KM, learning organizational culture, and organizational performance; the method used in this research is PLS and the locations used in this study, sites at the State University of Makassar in Indonesia, are unique as they have not been used in any previous studies on this topic.


2016 ◽  
Vol 23 (4) ◽  
pp. 232-248 ◽  
Author(s):  
Muhammad Kashif Imran ◽  
Muhammad Ilyas ◽  
Usman Aslam ◽  
Ubaid-Ur-Rahman Ubaid-Ur-Rahman

Purpose The transformation of firms from resource-based-view to knowledge-based-view has extended the importance of organizational learning. Thus, this study aims to develop an organizational learning model through transformational leadership with indirect effect of knowledge management process capability and interactive role of knowledge-intensive culture. Design/methodology/approach Different statistical analyses were done to check the direct, indirect and interactive effects on 204 valid responses. Findings The results are clearly depicting that transformational leadership has significant positive impact on organizational learning and knowledge management process capability, and partially mediates the relationship between transformational leadership and organizational learning. Additionally, knowledge-intensive culture has strengthened the relationship between transformational leadership and knowledge management process capability. Originality/value This is an overarching and unique conceptual model. After examining the importance of organizational learning in the context of innovative ability, competitive advantage, creativity and organizational performance, management has to initiate steps to induct transformational leaders, develop knowledge-intensive culture and introduce knowledge management processes to boost learning environment in organizations.


2015 ◽  
Vol 10 (4) ◽  
pp. 432-455 ◽  
Author(s):  
Henri Tapio Inkinen ◽  
Aino Kianto ◽  
Mika Vanhala

Purpose – Recent empirical studies have suggested that knowledge-based issues are closely related to companies’ innovation performance. However, the majority of research seems to be focused either on static knowledge assets or knowledge processes such as knowledge creation. The purpose of this paper is to concentrate on the conscious and systematic managerial activities for dealing with knowledge in firms (i.e. knowledge management (KM) practices), which aim at innovation performance improvements through proactive management of knowledge assets. The study explores the impact that KM practices have on innovation performance. Design/methodology/approach – The authors provide empirical evidence on how various KM practices influence innovation performance. The results are based on survey data collected in Finland during fall 2013. The authors use partial least squares to test the hypothesized relationships between KM practices and innovation performance. Findings – The authors find that firms are capable of supporting innovation performance through strategic management of knowledge and competence, knowledge-based compensation practices, and information technology practices. The authors also point out that some of the studied KM practices are not directly associated with innovation performance. Originality/value – This study adds to the knowledge-based view of the firm by demonstrating the significance of the management of knowledge for innovation performance. Furthermore, the division of KM practices into ten types and the provision of the validated scales for measuring these add to the general understanding of KM as a field of theory and practice. This study is valuable also from managerial perspective, as it sheds light on the potentially most effective KM practices to improve companies’ innovation performance.


2016 ◽  
Vol 20 (2) ◽  
pp. 230-257 ◽  
Author(s):  
Henri Inkinen

Purpose Knowledge management (KM) has emerged as one of the most discussed new management methods. Among the most debated areas in KM has been the association between knowledge and firm performance, but a lack of understanding and consensus still remains as a major issue. This paper aims to address the research gap by reviewing the empirical literature and determining how KM-based managerial and organizational practices are related with firm performance. Design/methodology/approach This study followed a systematic review procedure. Findings The findings demonstrate that utilization of KM practices is significant driver for innovation. Also, specific leadership characteristics and organizational arrangements are likely to support firm performance through more efficient and effective management of knowledge resources. Research limitations/implications This study adds to the discussion on knowledge-based view of the firm by pointing out the key organizational and managerial practices that are associated with firm performance. The results of this study also add structure to the previously scattered discussion on KM practices by synthesizing the relevant literature Practical implications Measuring KM performance is characterized by organizational complexity; this study demonstrated that innovation is a likely outcome of utilization of KM practices, but there are numerous other factors that influence the financial performance figures. Also, this study points out that organizations should pay attention to specific KM leadership attributes and organizational arrangements in order to achieve firm performance through KM. Originality/value This is the first systematic literature review on KM practices and firm performance. The results increase understanding of efficient and effective management of knowledge resources for organizational benefit.


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