The impact of customer knowledge on the organizational performance: a system dynamics approach

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seyed Danial Bidgoli ◽  
Mohammad Saleh Owlia ◽  
Mohammad Taghi Isaai

PurposeThe purpose of this research was to model the impact of customer knowledge on the performance of organization with a focus on information technology industry. Furthermore, it is intended to analyze the effect of customer knowledge investment on the performance measures, by reviewing investment policies.Design/methodology/approachThe relationship between customer knowledge and performance measures was specified using literature review and grounded theory method. The system dynamics approach was then applied to analyze the impact of the customer knowledge on the performance measures.FindingsThis study provided a dynamic model on the causal relationship between customer knowledge and organizational performance. The results showed that measures such as product development, financial performance, idea generation, technical knowledge and knowledge maturity were affected by the customer knowledge while the relationship with customer loyalty and the number of customers was not proven. Besides, it was found that to increase the impact of customer knowledge on organizational performance, knowledge maturity was essential, and investing on customer knowledge without investing on knowledge maturity would reduce the organizational performance. The results also showed that more knowledge investment would not necessarily increase financial strength of the organization.Practical implicationsResults of this study could be useful for strategy formulation and deployment especially for IT-based companies showing the importance of investment on customer knowledge on the one hand and the knowledge maturity in the organization on the other hand.Originality/valueIn this research, the impact of customer knowledge on both financial and nonfinancial performance measures was studied showing new findings on the dynamism of their relationships.

2015 ◽  
Vol 36 (7) ◽  
pp. 1012-1033 ◽  
Author(s):  
Anastasia A. Katou

Purpose – The purpose of this paper is to investigate the impact of human resource management (HRM) systems (expressed by content, process and climate) on organizational performance through the mediating role of psychological contracts (expressed by employer and employee promises fulfilment). Design/methodology/approach – The study examines theoretical relationships in the Greek context, based on structural equation modelling (SEM) estimation, using a sample of employees from both private and public sector organizations. Findings – The study finds that the impact of HRM content on organizational performance is less strong compared to its impact through HRM process. Additionally, the study finds that psychological contract partially and positively mediates the HRM – performance relationship, where the impact of HRM on organizational performance through employee promises fulfilment is stronger than that through employer promises fulfilment. Research limitations/implications – The study does not allow for appropriately investigating dynamic causal inferences due to the cross-sectional nature of data. Additionally, considering that Greece is experiencing a severe economic and financial crisis, the findings from this unique context may not generalize across borders. Practical implications – For improving organizational performance, managers and decision makers should make their HRM systems more visible, understandable, legitimate and relevant. At the same time they should make HRM systems more instrumental, valid and consistent of HR messages. Originality/value – Investigations into the relationship between HRM systems and organizational performance have become increasingly common. Nevertheless, empirical studies that measure the influence of HRM systems, which integrate both content and process, on organizational performance are still rare. This paper partially fills this gap.


2019 ◽  
Vol 41 (3) ◽  
pp. 241-257
Author(s):  
Xiaoxuan Zhai ◽  
Xiaowen Tian

Purpose The purpose of this paper is to develop a resource-based framework to explain the relationship between high-performance work system (HPWS) and organizational performance (OP) and the moderating role of performance measures. Design/methodology/approach The paper takes a meta-analysis approach, and tests hypotheses against data of 47,741 firms and establishments in 192 studies published by June 2016. Findings The paper finds that HPWS has a greater positive effect on operational than financial performance. Moreover, HPWS influences operational performance more strongly in developing than advanced countries and at the firm level than the establishment level, but such variations are not evident in the effect of HPWS on financial performance. Practical implications The paper suggests that managers should treat human resource management (HRM) practices as a system, and develop HPWS for operational gains which in turn lead to financial gains. Managers need to take different approaches to develop HPWS for high performance depending on the country of origin and the level of organization. Originality/value Based on studies of individual HRM practices, previous meta-analytical studies suggested that the HPWS-OP relationship is invariant across performance measures. Taking HRM practices as integral components of HPWS, this paper extends the resource-based theory to demonstrate that performance measures interact with country of origin and level of analysis to moderate the HPWS-OP relationship.


2019 ◽  
Vol 32 (6) ◽  
pp. 913-935 ◽  
Author(s):  
Caixia Chen ◽  
Tongyu Gu ◽  
Yuru Cai ◽  
Yixiong Yang

Purpose The purpose of this paper is to develop a novel research model to examine the relationship among information sharing (IS), supply chain integration (SCI), operational performance (OP) and business performance (BP) in the fashion supply chains. Design/methodology/approach A survey of 247 executives from Chinese fashion brand firms was conducted and the data were analyzed to investigate how IS affects the organizational BP. Structural equation modeling (SEM) was applied to study the relationship among IS, SCI, OP and BP. Findings The empirical research results indicate that IS is critical to enhance the SCI and OP, and both SCI and OP exert mediating effects on BP of fashion brands. This result also reveals constructive suggestions that allow fashion brands to strengthen their SCI and OP, as well as BP. Research limitations/implications Multiple data sources were applied to develop the sampling frame, and respondents were selected (according to their experience and position) to ensure they had the knowledge and expertise to provide valid response. However, this could not guarantee the adequacy of the sample. This limitation is compounded by the reliance on a simple respondent per firm, which precludes testing for inter-rater reliability. Practical implications The empirical findings provide an enhanced understanding of the relationship among IS, SCI, OP and BP in Chinese fashion brand settings. The research results will help fashion brands to improve supply chain efficiency and enhance company performance. Originality/value Although previous studies have realized that the value of IS varies in different industries, few have specifically explored the impact on the fashion industry characterized by short life cycles, high volatility, low predictability and high impulse purchasing. To fill this knowledge gap, the present study employed a questionnaire survey and SEM techniques to explore the relationship among IS, SCI, OP and BP in the fashion supply chain. Comprehending the impact mechanism of IS on organizational performance can provide useful management insights into the development of effective strategies that allow enterprise to improve BP.


2015 ◽  
Vol 44 (6) ◽  
pp. 906-929 ◽  
Author(s):  
Santiago Melián-González ◽  
Jacques Bulchand-Gidumal ◽  
Beatriz González López-Valcárcel

Purpose – Employee satisfaction appears in any discussion about how employees can contribute to organizational performance. The purpose of this paper is to test the relationship between employee satisfaction and organizational performance; this later measured with three firm-level performance outcomes (return over assets, operating margin, and revenue per employee). Design/methodology/approach – At different times and from two independent sources the authors obtained firms’ data about worker attitudes and financial and productivity performance, respectively. The analyzed sample of 475 firms is the biggest among the studies that analyze performance and employee satisfaction at the firm level. The impact of employee satisfaction over firm performance was assessed. Findings – Overall satisfaction and satisfaction with senior leadership, compensation, and work/life balance, respectively impact firm performance. Research limitations/implications – The ratings come from both employees and ex-employees and the individual characteristics were unknown. Additionally as an internet-based sample there has been a lack of control over the individuals’ response process. Practical implications – Managers have evidence about the importance of their employees’ satisfaction on firm performance, and on how the facets involved on worker satisfaction impact the performance. Social implications – Employer review web sites are increasing their popularity. However, unlike the marketing field with consumers HR area has not taken advantage of this trend. The found results may contribute to highlight the importance of this kind of data. Originality/value – Hitherto there is only one empirical evidence about the positive role of worker satisfaction in objective and financial firm level performance. That was based in best-firms type data. The current study draws in a big sample independent of this kind of rankings. Additionally, the job facet satisfaction conceptualization considered demonstrates the usefulness of this way to understand the employee satisfaction.


2019 ◽  
Vol 36 (7) ◽  
pp. 1053-1077 ◽  
Author(s):  
Binh An Thi Duong ◽  
Huy Quang Truong ◽  
Maria Sameiro ◽  
Paulo Sampaio ◽  
Ana Cristina Fernandes ◽  
...  

Purpose A single supply chain management (SCM) practice will have a certain impact on organizational performance (OP). However, since it is placed in a system that many other practices are conducted simultaneously, the practice itself will interact with other ones (i.e. affect/be affected). As a consequence, the efficiency of the affected practice is increased and it is expected to maximize the impact of SCM practices on OP. This mechanism is named the “resonant” influence that is a new approach in the SCM literature. The purpose of this paper is to test the above mechanism toward an insight into the relationship between SCM and OP. Design/methodology/approach Two models were compared: the competitive models only exist in direct effects; and the other contains relationships between practices that are able to show the mechanism of the resonant influence, i.e. the hypothetical model. A data set gained from Vietnamese garment enterprises was used to validate the mechanism of the resonant influence. Findings Empirical evidence from Vietnamese garment sector showed that the competitive models could explain 42.8, 26.3 and 34 percent variance of operational performance, customer satisfaction and financial performance, respectively. In the meantime, the hypothetical model containing the resonant influence is capable to explain 69.5, 33.1 and 57.3 percent. For the impact of each SCM practice on OP, all relationships in the hypothetical model are also greater than those in competitive ones. These results supported the mechanism of the resonant influence. Research limitations/implications This research provides an insight into the relationship between SCM practices and OP. By the resonant influence, the effectiveness of each affected SCM practice itself is magnified and OP is also increased remarkably. Practical implications Understanding the resonant influence, companies can apply this mechanism to enhance effectiveness of SCM practices at the lowest cost. To this end, the SCM practices should be implemented simultaneously as an integrated system rather than independent ones and the structural model proposed in this study is able to be used as “a guide map” for applying this mechanism. Originality/value This is one of pioneer empirical studies in the SCM literature that proposed and validated the concept of “resonant influence.”


2019 ◽  
Vol 27 (2) ◽  
pp. 886-911 ◽  
Author(s):  
Vimal K.E.K. ◽  
Jayakrishna K. ◽  
Thaha Ameen ◽  
Syed Shoaib Afridhi ◽  
Varadharajan Vasudevan ◽  
...  

Purpose Industrial symbiosis (IS) is basically a synergistic association between two or more industries or businesses wherein the waste or by-product of one industry becomes the raw material or immediate material of another industry. IS is believed to bring in significant benefits to the organizations. Thus, the purpose of this paper is to evaluate the competitiveness attained through IS. Design/methodology/approach Analytic hierarchy process was adopted to analyze the various organizational competitiveness of IS implementation. The conceptual model was developed to understand the interrelationship between 14 outcomes and 5 organizational competitiveness which are identified from the literature review. The attainment of these five organizational competitiveness was evaluated by computing the global priority score of the outcomes. Findings The global priority score suggests that the organizational collaboration (0.19) is the important output. Further, collective learning and growth (44 percent) have been identified as the important competitiveness attained through the implementation of IS. Practical implications The relationship matrix developed can be used by the practicing managers/researchers to understand the various interactions. Thus, systematic decision making and guidance for future implementation studies will be ensured. Originality/value In the past, few authors discussed the conceptualization of IS; however, the impact of IS on the organizational performance was not extensively studied. Therefore, a conceptual model was proposed to analyze the attainment of various competitiveness through the participation of industrial symbiosis network. Further, based on the computed scores, the relationship matrix developed between outcomes and organizational competitiveness is one of the significant contributions of this work.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shagufta Showkat ◽  
Siddharth Misra

Purpose Present day organizations are considering workforce diversity as one of the main challenges in the human resource management. This study aims to find out the relationship between diversity management (DM) in the context of strategic human resource management (SHRM) and organizational performance (OP). An attempt is made to find out the mediation effect of cognitive diversity (CD) and affective diversity (AD) in the relationship between DM and OP. Design/methodology/approach The constructs investigated in the present study include DM, OP, CD and AD. Structural equation modeling has been used to test the model fit. The data was collected from 50 human resource professionals working in different organizations in the information technology (IT) sector in Bangalore, India. Confirmatory factor analysis has been used for establishing the reliability. Findings The results show that there exists a significant relationship between DM and OP. This significant positive relationship can be attributed to the mediating role of CD and significant negative relationship is because of the AD. Research limitations/implications This study has several limitations. In this study, only three DM practices have been considered. The generalization of the results is another limitation as the study has been conducted in the IT sector in Bangalore, India. Similarly, sample size also affects the implications of an empirical study and sample size in this study is small. This study has investigated only the impact of two aspects of diversity, cognitive and affective, while neglecting the effect of communicational and symbolic processes. Practical implications The results indicate that organizations must consider that by providing intercultural trainings (ICTs), work–life balance (WLB) and work-time flexibility options, the negative aspects of diversity can be minimized. Moreover, organizations should encourage the task conflict which leads to better decision-making as well as creates a sense of group identification, which may help in the avoidance of negative consequences of AD. Originality/value This study is undertaken to find out the effect of certain diversity-oriented SHRM practices such as flexible working times, WLB, ICT and its impact on the OP in the Indian IT industry. This study has investigated the mediating role of CD and AD on the relationship between diversity-oriented SHRM practices and OP, which is the novelty of this study. Third, the study has been undertaken considering that there is a dearth of research on the impact of AD and CD on OP in the Indian context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdul Waheed ◽  
Qingyu Zhang ◽  
Abaid Ullah Zafar ◽  
Hashim Zameer ◽  
Muhammad Ashfaq ◽  
...  

PurposeThis study investigates the impact of corporate social responsibility (CSR) on organizational performance, especially competitive performance (CP) along with moderating role of the organizational culture (OC) from the banking sector of China. Drawing on the stakeholder theory, the first goal is to examine the relationships between CSR and organizational CP. Second, the purpose is to evaluate the moderation of OC between the relationship of CSR and CP, respectively.Design/methodology/approachSEM using SmartPLS was majorly engaged to ascertain the relationship and to inquire the assumed hypotheses. The convenience sampling was engaged to collect the data from the Chinese banking market with the help of students, colleagues and personal visits.FindingsThe findings exhibited that CSR both external and internal CSR has significant correlations on organizational CP within banking sector of China. Second, the findings revealed a positive moderation influence of OC between the relationships of CSR and organizational CP. The comprehensive analysis of each factor of CSR on organizational CP was autonomously inspected to understand the insights which ensure that how the incorporation of CSR and OC activities may improve organizational CP.Research limitations/implicationsThis study faces numerous limitations related to sample and geographic locations that assure new work possibilities for researchers across the world.Practical implicationsThis study equips insightful information for management on how organizations can obtain CP by consolidating CSR and OC activities as their more productive strategic tools. This article endows with potential theoretical and managerial implications with empirical addition to concerned literature of OC, CSR and organizational CP.Social implicationsUnderstanding OC and CSR activities can provide interesting and helpful insights for the personnel to perform well within the banking institutes.Originality/valueThe topic of CSR and culture has been known as the evolving concept that is getting strong concern for the researchers. The additional work particularly empirical is yet required to explore the insights on CSR and OC themes worldwide, especially in developing nations.


2008 ◽  
Vol 12 (1) ◽  
pp. 106-118 ◽  
Author(s):  
Andrew Schenkel ◽  
Robin Teigland

PurposeThe purpose of this article is to empirically investigate the relationship between communities of practice and performance.Design/methodology/approachInterviews, surveys, and company records from a case study of several communities of practice within a multi‐billion dollar construction project are investigated. Using the concept of learning curves, the authors look at the relationship between four communities of practice and their performance as well as taking an in‐depth look at the communication patterns within each community of practice.FindingsThree communities of practice that operated under stable conditions were found to exhibit improved performance. However, the one community of practice that experienced changes in its communication channels due to a physical move was never able to regain its previous ability to continuously improve, indicating a strong relationship between communication channels and performance.Research limitations/implicationsThe research presented here focuses only on communities of practice within one organization and one industry, thus limiting the degree to which the results can be generalized.Practical implicationsThe results provide support for the recent efforts by managers to sponsor and even “formally define” communities of practice within organizations. This article also illustrates how sensitive communities of practice are to changes in communication channels, thus alerting managers to the importance of understanding the impact of their actions on a community's cognitive processes and structural dimensions.Originality/valueThis paper offers empirical support for a positive relationship between communities of practice and performance, thus filling a research gap that has been difficult to fill due to the ethereal nature of communities of practice.


2020 ◽  
Vol 32 (6) ◽  
pp. 1507-1524 ◽  
Author(s):  
Hari Lal Bhaskar

PurposeThis paper presents findings of a survey on total quality management (TQM) practices adopted by the Indian manufacturing organizations. The purpose of this paper is to test and establish the relationship between TQM practice and organizational performance (OP). This paper also aims to examine the impact of TQM practices on OP of Indian manufacturing organizations.Design/methodology/approachA survey questionnaire was developed and randomly distributed through e-mail to senior managers of 275 Indian manufacturing organizations. About 230 received questionnaires were used for data analysis. Response rate was 83.63 percent. In particular, hypotheses were developed to examine the effect of TQM on the OP of the manufacturing organizations. Cronbach's alpha reliability of questionnaire was analyzed using factor analysis. Rigorous literature review is enabled to construct structural measurement model, formulation of testable hypothesis and operationalization of constructs.FindingsIt is discovered that TQM has a positive and significant effect on the market orientation (MO). Similarly, the results showed that MO has a positive and significant effect on the OP. With regard to the relationship between TQM and OP, this study found that TQM significantly and positively affects the OP of Indian manufacturing organizations.Originality/valueThis study is a rare and unique empirical study that establishes a link among TQM, MO and OP. The study fulfills need of quality management practice and offers practical implications to Indian managers and motivates further research on the relationship between TQM and OP in Indian manufacturing organizations.


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