Knowledge processes and firm performance: the mediating effect of employee creativity

2018 ◽  
Vol 31 (3) ◽  
pp. 512-531 ◽  
Author(s):  
Muhammad Kashif Imran ◽  
Muhammad Ilyas ◽  
Usman Aslam ◽  
Tehreem Fatima

Purpose In current era, firms are facing difficulties in aligning their capabilities with the hallmarks of the knowledge-intensive economy. Notwithstanding the fact that employees’ creativity ensures competitive advantage through innovation, firms are unable to reap the required level of performance. The purpose of this paper is to investigate the linkage among knowledge processes, employee creativity and firm performance. Moreover, the current quantitative study measures the moderating effect of a knowledge-intensive culture on knowledge processes and employee creativity. Design/methodology/approach Surveys were conducted in eight services sector organizations operating in southern Punjab, Pakistan, and responses were obtained from 197 employees selected at random. To test the exposition using an empirical data analysis approach, three core hypotheses are drawn, and to test these hypotheses, multiple regression analyses, Preacher and Hayes (2004) mediation analysis and Aguinis (2004) guidelines were applied on 197 responses. Findings The results explain that knowledge processes have a positive impact on firm performance and employee creativity partially mediates their stated relationship. Moreover, a knowledge-intensive culture has a strengthening effect on the relationship between knowledge processes and employee creativity. In-depth investigation outlines that knowledge acquisition, sharing and application are more influencing processes to enhance firm performance. Furthermore, knowledge conversion and protection do not hold significant relevance with firm performance but are supportive elements for other processes. Research limitations/implications In order to have a sustained performance, firms have to initiate steps to promote employees’ creativity by deploying an optimal mix of knowledge processes and flourish a knowledge-intensive culture in routine organizational life. Moreover, knowledge processes are important to promote creative behavior in employees that will lead to incessant innovation and firm performance. Originality/value This study gives meaningful thoughts to unexplored areas in the field of knowledge management. First, the indirect effect of knowledge processes on firm performance through employees’ creativity. Second, the importance of knowledge processes to enhance employees’ creativity in the presence of a knowledge-intensive culture. This study gets together the dynamic constructs in the field of knowledge management, such as knowledge-intensive culture and employee creativity, and describes the linkage between knowledge processes and firm performance.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarra Berraies ◽  
Khadija Aya Hamza ◽  
Rached Chtioui

Purpose The aim of this paper is to highlight the impact of distributed leadership (DL) on exploitative and exploratory innovations through the mediating effects of organizational trust (OT) and tacit and explicit knowledge sharing (KS). Design/methodology/approach Focusing on a quantitative approach, an empirical study was performed within a sample of information and communication technology Tunisian firms. The data collected was analyzed through the Partial Least Squares (PLS) method. Findings Findings revealed that DL is a driver of tacit and explicit KS, and exploitative and exploratory innovations. It also highlighted that tacit KS is associated with these two types of innovation. In this line, results showed that tacit KS plays a mediating effect between DL and exploitative and exploratory innovations. Moreover, our research highlighted that DL has a positive impact on OT that in turn boosts tacit and explicit KS. Originality/value This paper investigates the links between DL and exploitative and exploratory innovations within knowledge intensive firms (KIFs) that have never been studied in the literature within the context of business firms. This paper pioneers the examination of the mediating roles of explicit and tacit KS and OT in these links as well. This paper highlights the importance of DL for KIFs and sheds the light on how this collectivist approach of leadership creates an atmosphere of trust and fosters tacit and explicit KS to boost exploitative and exploratory innovations.


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.


2017 ◽  
Vol 18 (2) ◽  
pp. 437-462 ◽  
Author(s):  
Bushra Meaad Ramadan ◽  
Samer Eid Dahiyat ◽  
Nick Bontis ◽  
Mahmoud Ali Al-dalahmeh

Purpose The purpose of this paper is to empirically investigate the mediating effect of social capital (SC) on knowledge management (KM) and intellectual capital (IC). Design/methodology/approach A conceptual model of the connections between IC, KM, and SC was developed and the posited hypotheses were tested using a survey data set of 281 questionnaires collected from knowledge workers working in 72 information and communications technology companies operating in Jordan. Findings The findings show that knowledge documentation and knowledge transfer emerged as having the strongest effects on IC, followed by knowledge acquisition and knowledge creation, while knowledge application was found to have an insignificant effect. Also, knowledge transfer and knowledge acquisition emerged as the only two significant processes for the development of SC. Moreover, SC was found to partially and significantly mediate the effects of all processes on IC. Practical implications To promote the development of IC, particularly, in a knowledge-intensive business service (KIBS) sector, documentation, transfer, acquisition, and creation of knowledge are especially effective processes. Furthermore, SC can be significantly enhanced through ensuring effective internal knowledge transfer and acquisition practices. Nurturing IC in a knowledge-intensive context can also be significantly enhanced through looking at the firm as a cooperative knowledge-sharing entity, i.e. investing in SC. Originality/value This is the first empirical study that has examined the links among KM processes, SC, and IC in a KIBS sector within an “oil-poor,” “human resource-rich” Arab developing country context.


2017 ◽  
Vol 21 (4) ◽  
pp. 817-838 ◽  
Author(s):  
Janine Viol Hacker ◽  
Freimut Bodendorf ◽  
Pascal Lorenz

Purpose Enterprise social networks (ESN) are increasingly used by companies to reinforce collaboration and knowledge sharing. While prior research has investigated ESN use practices, little is known about potential user roles emerging on these platforms. Against this backdrop, this paper develops an ESN knowledge actor role framework. Design/methodology/approach The framework is constructed based on a systematic review of literature covering knowledge worker role typologies, user roles identified in public online social spaces as well as findings from ESN research. Findings The ESN knowledge actor role framework distinguishes eight contributing and two reading roles. It describes the associated participation behaviours and establishes metrics to identify the roles. Research limitations/implications Providing a notion of knowledge management-related roles in ESN, the framework enables a better understanding of knowledge processes and the involved actors. Moreover, the paper advances the field of ESN data analytics by designing a set of ESN metrics to characterise user behaviour. Practical implications Understanding ESN user roles, in particular regarding their knowledge contributions to the platform, can improve knowledge transparency in companies. The framework may usefully support the identification and management of critical knowledge resources and support decision-making in the areas of human resources management and knowledge management. Originality/value Providing a platform for knowledge-intensive interactions as well as record of user activities, ESN are well suited to observe and identify knowledge actor roles emerging in this context.


2019 ◽  
Vol 11 (13) ◽  
pp. 3660 ◽  
Author(s):  
Haiyun Yu ◽  
Yanjie Shang ◽  
Nan Wang ◽  
Zhenzhong Ma

While it is well-known knowledge management is crucial for an organization’s competitive advantage, relatively little research has explored the process whereby knowledge management affects firm performance in a collectivistic culture such as China. This study is to explore the mechanism through which knowledge management helps improve firm performance and then to examine the mediating role of decision quality in the Chinese context. Using a self-administered questionnaire to collect data from Chinese entrepreneurs and with structural equation modeling, this study shows that knowledge accumulation, internal sharing, and external knowledge sharing all have a positive impact on firm performance, and decision quality partially mediates the impact of knowledge management on firm performance. This study adds value to the knowledge management literature by introducing decision quality as a mediating variable to examine the impact of knowledge sharing on firm performance in China. The findings of this study can help enrich the literature on knowledge management and firm performance and highlight the important impact of decision quality on knowledge management and firm performance. Management practitioners can also benefit from the findings.


2018 ◽  
Vol 19 (4) ◽  
pp. 361-378 ◽  
Author(s):  
Aluisius Hery Pratono

Purpose This paper aims to contribute to the risk management studies in small and medium enterprises (SMEs) by examining the complicated relationship between risk-taking behavior and firm performance. Design/methodology/approach The study conducted a survey of the Indonesian SME owner-managers and used partial least square structural equation modeling to examine the mediating effect of pricing capability and moderating effects of information technological turbulence. Findings The results do not only confirm the positive impact of risk-taking behavior on firm performance but also identify that impact of risk-taking behavior on firm performance is more effective at the low information technological turbulence than at the high one. Research limitations/implications This study relied on information from the owner-managers in SMEs, which may bias against the perspective of their employees and the business partners. Originality/value This study advances the risk-taking behavior research in SMEs context by introducing the effect of pricing capability and information technological turbulence.


2017 ◽  
Vol 21 (3) ◽  
pp. 623-639 ◽  
Author(s):  
Tingting Zhang ◽  
William Yu Chung Wang ◽  
David J. Pauleen

Purpose This paper aims to investigate the value of big data investments by examining the market reaction to company announcements of big data investments and tests the effect for firms that are either knowledge intensive or not. Design/methodology/approach This study is based on an event study using data from two stock markets in China. Findings The stock market sees an overall index increase in stock prices when announcements of big data investments are revealed by grouping all the listed firms included in the sample. Increased stock prices are also the case for non-knowledge intensive firms. However, the stock market does not seem to react to big data investment announcements by testing the knowledge intensive firms along. Research limitations/implications This study contributes to the literature on assessing the economic value of big data investments from the perspective of big data information value chain by taking an unexpected change in stock price as the measure of the financial performance of the investment and by comparing market reactions between knowledge intensive firms and non-knowledge intensive firms. Findings of this study can be used to refine practitioners’ understanding of the economic value of big data investments to different firms and provide guidance to their future investments in knowledge management to maximize the benefits along the big data information value chain. However, findings of study should be interpreted carefully when applying them to companies that are not publicly traded on the stock market or listed on other financial markets. Originality/value Based on the concept of big data information value chain, this study advances research on the economic value of big data investments. Taking the perspective of stock market investors, this study investigates how the stock market reacts to big data investments by comparing the reactions to knowledge-intensive firms and non-knowledge-intensive firms. The results may be particularly interesting to those publicly traded companies that have not previously invested in knowledge management systems. The findings imply that stock investors tend to believe that big data investment could possibly increase the future returns for non-knowledge-intensive firms.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farooq ◽  
Amna Noor ◽  
Shoukat Ali

Purpose The purpose of this research is to look into the governance–performance relationship in the context of critical firm characteristics, such as firm size. Design/methodology/approach Based on total assets, sample firms were classified as small or large. The governance index, which is based on 29 governance provisions covering the audit committee, board committee, ownership and compensation structure of the respective firm, measures governance quality among sample firms. A higher governance index indicates a higher level of governance quality and vice versa. Accounting and market value measures are used to determine firm profitability. The authors used the two-stage least square (2SLS) method of estimation of the model to eliminate the simultaneous equation bias. Findings Corporate governance (CG) appears to have a positive impact on accounting return and market indices (Tobin’s Q), but it has little impact on return on equity. In terms of firm size, larger companies profited more from better governance implementation than smaller firms that lacked these principles, thus improving CG. The findings indicate that small businesses should improve their governance mechanisms to reap the benefits of CG in terms of increased profitability. Research limitations/implications There are certain drawbacks to this research. First, the authors omitted qualitative aspects of CG from the CG index, such as the board’s decision-making process, directors’ perceptions of the board’s position and directors’ age and qualifications. Such a qualitative component will improve the governance index in the future while building the governance index. Second, as the current study only looks at the nonfinancial sector, caution should be exercised before applying the findings to the entire population. Practical implications The findings show that companies that follow good governance standards have better accounting and market efficiency than those that do not. As a result, good governance practices can help firms in developing countries improve their performance. Academic researchers, regulators, investors, lenders and practitioners can find the findings useful in establishing a true relationship between firm performance and CG practices in Pakistan. Originality/value The relationship between governance and profitability in the context of firm size is examined in this research. Firms with varying resources and ability to implement CG codes have varying effects on profitability. To the authors’ knowledge, there was a gap in the literature that addressed this topic in the local context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hong Jiang ◽  
Kazuyuki Motohashi ◽  
Wentao Liu ◽  
Xu Zhang

Purpose This study aims to investigate the relevance of knowledge-oriented leadership (KOL) to technology standard innovation (TSI) from a temporary-team perspective. The mediating and moderating effect on knowledge integration (KI) and leader–member exchange (LMX) is emphasized. Design/methodology/approach The conceptual model is built based on an exhaustive literature review and is empirically tested in terms of a sample of 341 Chinese individuals with TSI experience. Quantitative analysis was performed using a questionnaire with the bootstrapping method used to demonstrate the mediating effect of KI. Findings The empirical results of this study prove that KI mediates the relationship between KOL and TSI. The authors deduce that LMX moderates the positive relation between KOL and KI. Originality/value Few studies have investigated the innovation activities of technology standards from a temporary-team perspective. To the best of the authors’ knowledge, this is the first study to look into the underlying mechanism of KOL in TSI. This research deepens the analysis by introducing LMX’s moderating role in the innovation process of technology standards, thereby providing valuable insights for leaders of innovation activities of technology standards and illuminating new aspects of knowledge-intensive temporary-team management.


2019 ◽  
Vol 57 (8) ◽  
pp. 1923-1936 ◽  
Author(s):  
Alberto Ferraris ◽  
Alberto Mazzoleni ◽  
Alain Devalle ◽  
Jerome Couturier

Purpose Big data analytics (BDA) guarantees that data may be analysed and categorised into useful information for businesses and transformed into big data related-knowledge and efficient decision-making processes, thereby improving performance. However, the management of the knowledge generated from the BDA as well as its integration and combination with firm knowledge have scarcely been investigated, despite an emergent need of a structured and integrated approach. The paper aims to discuss these issues. Design/methodology/approach Through an empirical analysis based on structural equation modelling with data collected from 88 Italian SMEs, the authors tested if BDA capabilities have a positive impact on firm performances, as well as the mediator effect of knowledge management (KM) on this relationship. Findings The findings of this paper show that firms that developed more BDA capabilities than others, both technological and managerial, increased their performances and that KM orientation plays a significant role in amplifying the effect of BDA capabilities. Originality/value BDA has the potential to change the way firms compete through better understanding, processing, and exploiting of huge amounts of data coming from different internal and external sources and processes. Some managerial and theoretical implications are proposed and discussed in light of the emergence of this new phenomenon.


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