The effects of knowledge creation process on organizational performance using the BSC approach: the mediating role of intellectual capital

2018 ◽  
Vol 22 (4) ◽  
pp. 802-823 ◽  
Author(s):  
Gholamhossein Mehralian ◽  
Jamal A. Nazari ◽  
Peivand Ghasemzadeh

PurposeKnowledge is a key success factor in achieving competitive advantage in the current fast-paced and uncertain economic environment. Several studies in the literature have analyzed the relationship between knowledge creation (KC) and organizational success; however, the mechanisms by which KC leads to accumulation of intellectual capital (IC) and thereby affects various dimensions of organizational performance are understudied. The purpose of this paper is to examine how KC and IC and their relationship influence key dimensions of organizational performance.Design/methodology/approachA research model was developed and tested based on the literature in the areas of KC, IC and organizational performance. This study uses a survey sent to companies in an intensive knowledge-based industry. The balanced scorecard (BSC) approach was used to measure the key dimensions of organizational performance.FindingsThe results from structural equation modeling (SEM) on 470 completed questionnaires received from the pharmaceutical companies in Iran reveal that KC activities lead to the accumulation of organizational IC and IC has a crucial and positive impact on the BSC. Furthermore, the results from the path analysis indicate that IC mediates the effects of KC on the BSC.Practical implicationsThe findings of this study contribute to the extant literature on the relationship between knowledge and organizational performance by demonstrating that knowledge and KC lead to performance when organizations utilize KC activities and leverage them to accumulate IC. Once used effectively, IC will result in a better performance in the knowledge-intensive environments.Originality/valueThis is the first study that investigates how KC contributes to firm performance by incorporating the mediating impact of IC on the BSC. The proposed model and results will help organizations to identify the mechanisms through which KC initiatives improve organizational performance.

Author(s):  
Baofeng Huo ◽  
Chen Liu ◽  
Haozhe Chen ◽  
Xiande Zhao

Purpose The purpose of this paper is to investigate relationships among dependence, trust, and integration in the Chinese 3PL context. 3PL integration is manifested in two key dimensions: information sharing and process coordination. Design/methodology/approach This study develops a dependence-trust-3PL integration-performance model and tests it using structural equation modeling with survey data collected from 361 companies in the Greater China area (i.e. mainland China, Hong Kong, and Taiwan). Findings The results show that switch dependence is indirectly related to information sharing and process coordination through goodwill trust, while goal dependence has direct links with both integrative behaviors. The authors also found that only goodwill trust mediates the relationship between dependence and integrative behaviors, while ability trust does not mediate any relationships. Finally, the analysis validated the direct link between process coordination and financial performance, but did not find a significant link between information sharing and financial performance. Originality/value Different from most previous studies on similar topics, this study examines the impacts of different types of dependence and trust on different 3PL integration dimensions. As a result, the findings are more specific and have direct relevance to effective 3PL relationship management in China.


2015 ◽  
Vol 1 (1) ◽  
pp. 50-69 ◽  
Author(s):  
Hong-bumm Kim ◽  
Sanggun Lee

Purpose – The purpose of this paper is to examine the causal relationships of city personality and city image, together with the possible effect of city image on the revisit intention of visitors, through empirical validation, so that some meaningful implications can reveal to city planners and marketers how the city tourists can be affected by the personality and image of the city. Design/methodology/approach – This study offers an integrated approach to understanding the relationship between city personality and city image. The research model investigates the relevant relationships among the underlying dimensions of city personality and city image by using a structural equation modeling (SEM) approach. Data obtained from a sample of 302 respondents drawn from a web-based survey in South Korea were analyzed with AMOS program. Findings – The results of this empirical study indicate that city personality positively or negatively affect city image depending on the nature of constructs. Positive relationships are found to exist between excitement as well as sophistication personality and dynamic image of city. On the contrary, the relationship between sincerity personality and dynamic image is negative. All the specific three images of city: dynamic, specific, and static image show positive impact on revisit intention of city tourists. Originality/value – The empirical results of this study provide tenable evidence that the proposed SEM designed to consider city personality and city image, and revisit intention simultaneously is acceptable. Even though in the previous literature, researchers tried to explain the relationship between city personality and city image, the conceptual model and empirical studies pertaining to causal relationships among those constructs have not been thoroughly examined. It is believed that this study has a substantial capability for generating more precise applications related to city tourism, especially concerning city personality and city image.


2015 ◽  
Vol 36 (3) ◽  
pp. 271-295 ◽  
Author(s):  
Fermín Mallén ◽  
Ricardo Chiva ◽  
Joaquín Alegre ◽  
Jacob Guinot

Purpose – The purpose of this paper is to investigate the relationship between altruistic leader behaviors, organizational learning capability and organizational performance. Design/methodology/approach – The sampling frame consists of several databases or listings of business that consider people as a key element of the organization and are considered by their employees to be good firms to work for or organizational environments where human resources management has high priority (n=251). The authors use structural equation modeling to test if the relationship between altruistic leader behaviors and organizational performance is mediated by organizational learning capability. Findings – Results suggest that organizational learning capability fully mediates between altruistic leader behaviors and organizational performance. Thus, organizational learning capability plays a key role in explaining how altruistic leader behaviors affect organizational performance, essentially because it facilitates the creation of a creative, participatory and dialogue-based environment that promotes organizational learning. Research limitations/implications – The database used in the study is very heterogeneous. Future research might delimit the database by organization size or sector. Qualitative studies may also improve our understanding of the relationships studied and enable other concepts to be included. Practical implications – This study provides evidence of the positive relationship between altruistic leaders and performance. However, recruiting and fomenting altruistic leaders is not sufficient on its own to improve performance, and should be accompanied by implementing other facilitating factors of organizational learning such as dialogue or experimentation. Originality/value – In recent years some studies have linked leadership with organizational learning. However, this is one of the first studies to concentrate on altruistic leader behaviors as such, a concept that has received scant mention in the literature despite its importance in a number of leadership styles, and its relevance today as an alternative to the egotistic leader. The authors offer empirical evidence of the role of altruistic leader behavior as an antecedent of organizational learning capability and subjective measures of performance.


2020 ◽  
Vol 38 (5) ◽  
pp. 1081-1106 ◽  
Author(s):  
Hind Lebdaoui ◽  
Youssef Chetioui

PurposeThis paper aims to examine a model that uses customer service quality as an intervening mechanism in the relationship between customer relationship management (CRM) practices and organizational performance in two different banking structures: conventional and Islamic. The study focuses on organizational and technological practices of CRM, as both have been demonstrated to be critical to CRM success.Design/methodology/approachThe analysis is based on responses from 247 managers from conventional banks and 141 managers from Islamic banks operating in Morocco using a self-administered questionnaire. The partial least squares structural equation modeling (PLS-SEM) technique is employed for data analysis.FindingsFindings demonstrate that customer service quality plays a mediating role between CRM practices (organizational and technological) and organizational performance in both conventional and Islamic banks. Our results confirm the positive impact of CRM practices on organizational performance in the two banking structures.Practical implicationsThis study enhances our understanding of how CRM practices contribute to improving customer service quality and organizational performance in both conventional and Islamic banks. Bank managers, who aim to deliver superior service quality and achieve customer satisfaction and retention, should capitalize on the benefits of implementing CRM organizational and technological practices.Originality/valueThe present paper bridges a gap pertaining to key practices and factors that impact CRM success in the banking industry. It is the first of its kind to investigate the effect of CRM practices on organizational performance with customer service quality as a mediating variable. The study also contributes to the field of CRM literature, as CRM has rarely been addressed in an Islamic banking context.


2020 ◽  
Vol 32 (6) ◽  
pp. 1349-1372 ◽  
Author(s):  
Mauro Sciarelli ◽  
Mohamed Hani Gheith ◽  
Mario Tani

PurposeThis study aims to empirically investigate the effects of both soft and hard quality management (QM) on innovation and organizational performance. It also examines the mediating role of hard QM, administrative innovation and technical innovation on the relationship between soft QM and organizational performance in higher education (HE).Design/methodology/approachThe approach of this study is quantitative. The data used to test the hypotheses were obtained through online questionnaire sent to the academic staff of public universities in Naples (Italy). The hypothesized relationships are tested with data collected from 356 respondents by using the partial least squares structural equation modeling technique (PLS-SEM).FindingsThe results show that quality practices improve innovation and organizational performance, while innovation positively impacts organizational performance. The findings also indicate that soft QM affects organizational performance directly and indirectly through hard QM. Hard QM and innovation show a partial sequential mediating effect on soft QM-performance relationshipPractical implicationsIn order to implement quality management properly in HE, directors need to recognize the different roles that soft and hard QM can have on innovation and organizational performance. It is important that higher education institutions (HEIs) allocate resources to establish both types of QM practices to achieve the effectiveness of the whole QM system.Originality/valueDespite the existence of numerous studies on the relationship between QM, innovation and organizational performance in manufacturing and services, studies conducted in higher education are still few. This is one of the earliest studies that adopt the multidimensional approach of QM in HE which could help directors understand the interdependencies and different roles of soft and hard quality practices.


2020 ◽  
Vol 26 (6) ◽  
pp. 1709-1730
Author(s):  
Dalia Suša Vugec ◽  
Vesna Bosilj Vukšić ◽  
Mirjana Pejić Bach ◽  
Jurij Jaklič ◽  
Mojca Indihar Štemberger

PurposeOrganizations introduce business intelligence (BI) to increase their performance, but often, this initiative is not aligned with the business process management (BPM) initiative, which also aims to improve organizational performance. Although some findings from the literature indicate that BI implementation has a positive impact on organizational performance, the impact seems to be indirect. Therefore, the purpose of this study is to enhance the understanding of how BI maturity is translated into organizational performance. Alignment of BI and BPM initiatives seems one possible way for creating business value with BI, particularly because BI enables process performance measurement and management, which allows the BI initiative to become more business focused.Design/methodology/approachA questionnaire was prepared and used to collect data in Croatian and Slovenian organizations with more than 50 employees. A BI–BPM alignment measurement instrument was developed for the purpose of this study using the recommended process of scale development and validation. A total of 185 responses were analyzed by the structural equation modeling technique.FindingsOur results provide evidence that the effect of BI on organizational performance is fully mediated by alignment of BI and BPM initiatives, and therefore, BI business value can be generated through the use of common terminology and methodologies, as well as a strong communication between BI and BPM experts, managers and teams in order to coordinate the two initiatives.Originality/valueThis study has responded to the call for better understanding of how the impact of BI on organization performance is realized. It confirmed that BI and BPM initiatives should be aligned in order to give BI a business value.


2016 ◽  
Vol 17 (3) ◽  
pp. 471-483 ◽  
Author(s):  
Meliha Handzic ◽  
Nermina Durmic ◽  
Adnan Kraljic ◽  
Tarik Kraljic

Purpose – The purpose of this paper is to empirically investigate the relationship between project-specific intellectual capital (IC) and project success in the context of information technology (IT) projects. Design/methodology/approach – Using data collected from surveys of 603 IT professionals across a variety of projects, the authors constructed a structural (structural equation model) model in AMOS to examine the relationships between three dimensions of project-specific IC (project team, project customer and project process) and project success. Findings – The empirical results support the proposition that IC has a positive impact on project success, and thus may be a good indicator of future projects’ performance. More importantly, the authors found out an important mediating role of a project’s structural capital (process) in exploiting its human (team) and relational (customer) capital for realising project success. Research limitations/implications – Interpretation of current results should be considered in light of the following methodological limitations: convenient rather than systematic sampling, use of previously untested measures and prevailing European subjects. Practical implications – These results suggest that project-based organisations need to invest heavily in their project workforce talent and then translate it into superior project practices in order to produce successful IT projects. They also need to maintain close relationships with their project customers and involve them during the entire project process. Originality/value – The current empirical evidence extends the understanding of the role of IC in improving project success and thus helps project-based organisations create and maintain competitive advantage in emerging economies.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joonghak Lee ◽  
Steven Kim ◽  
Youngsang Kim

PurposeResearch on diversity climate has shown that diversity climate as an employee's perception of an organization's diversity-related practices or procedures has a positive impact on reducing turnover intentions. However, we know little about which intervening mechanism explains the relationship between diversity climate and employee's turnover intentions. In this study, we suggest that individual employee's perceived diversity climate influences turnover intentions through personal diversity value and affective commitment.Design/methodology/approachWith a sample of 901 employees in more than 50 companies affiliated in South Korea, the authors test the hypothesized relationship, using structural equation modeling (SEM).FindingsOur findings show that personal diversity value and affective commitment sequentially mediate the relationship between perceived diversity climate and turnover intentions.Research limitations/implicationsThis study can enhance the understanding about the mediating mechanism linking the relationship between perceived diversity climate and turnover intentions and how personal diversity value and affective commitment link the relationship.Originality/valueThe authors theorize and find that perceived diversity climate can influence personal diversity value that results in employee commitment and turnover intentions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niveen Mohammed Ghunaim ◽  
Ayham A.M. Jaaron

PurposeDue to the ever-increasing competitive and complex business environments, food manufacturing companies have to maintain high-quality products while simultaneously minimizing customers' costs. Cost of quality (COQ) plays a crucial role in enhancing companies' efficiency and reducing expenditures that can contribute to companies' competitive performance. This paper investigates the underlying relationship between the level of COQ practices adoption (prevention, appraisal, internal and external failure costs) and organizational performance in Palestinian food manufacturing companies (PFMCs).Design/methodology/approachA quantitative research methodology using a structured questionnaire collected data from 119 PFMCs. Partial least squares structural equation modeling was used to analyze collected data.FindingsResults indicated that COQ adoption has a significant positive effect on the organizational performance of PFMCs. Besides, prevention, external and internal failure costs were all associated with a positive impact on organizational performance of PFMCs, whereas appraisal cost did not affect organizational performance.Originality/valueThis study is considered one of the first studies to investigate COQ practices' effect on organizational performance in food manufacturing companies in a developing country context. Thus, it adds significant value to the literature responding to calls to tackle competitiveness issues in current complex business environments.


Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Athambawa Haleem

Organizations needs knowledge creation capability and organizational forgetting to enrich their innovative performance in ever-changing business setting.The purpose of this article is to explore the influence of knowledge creation capability, organizational forgetting and absorptive capacity on Firm’s innovative performance. We test the model using Partial least squares structural equation modeling (PLS-SEM) to analyze empirical data collected from 194SMEs listed in Sri Lanka inventors’ commission.The findings of the study show that in addition to their individually positive impact of knowledge creation capability and organizational forgetting on firm’s innovative performance, the absorptive capacity mediates the relationship between knowledge creation capability, organizational forgetting and innovation performance. As one of the first studies to integrate the  capabilities of creating internal new knowledge and unlearning outdated knowledge for advancing firm innovativenessthrough the mediating effect of absorptive capacity. A major implication of this finding is that absorptive capacity enhances the effect of knowledge creation capability and organizational forgetting on firm's innovativeness and affects the types of innovation strategies adopted by firms.


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