Linking knowledge management practices to organizational performance using the balanced scorecard approach

Kybernetes ◽  
2019 ◽  
Vol 49 (1) ◽  
pp. 88-115
Author(s):  
Meenu Chopra ◽  
Vikas Gupta

Purpose The purpose of this study is to develop a decomposed model to inspect the effect of knowledge management practices (knowledge sharing culture [KSC], knowledge-based human resource management [KHRM], strategy and leadership [S&L], information and communication technology [ICT] on organizational performance [OP]) by using the four balanced scorecard outcomes (BSC) (learning and growth [L&G], internal process [IP] perspective, customer satisfaction [CS] perspective and financial performance [FP]). Design/methodology/approach The research methodology included development of a research model based on comprehensive literature review followed by survey of knowledge-intensive organizations. A sample of 277 employees was obtained and structured equation modeling analysis using SPSS AMOS was conducted to test the proposed hypotheses. Findings The study shows that KSC and KHRM have a highly significant effect on all the four aspects of OP; S&L positively and significantly affects only L&G and IP but does not have any significant effect on the other two, i.e. CS and FP, while ICT practices did not affect any of the measures significantly. Research limitations/implications The data are limited to 277 middle and senior level managers of Indian firms, which may be a limiting factor for generalizability. Originality/value The proposed model uncovers the dynamics of individual relationships between KM practices and measures of performance (proposed by BSC) in comparison to existing models which have mainly focused on the overall effect.

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcelo de Moraes Cordeiro ◽  
Mírian Oliveira ◽  
Maria-Isabel Sanchez-Segura

Purpose This study aims to identify the influence of knowledge management processes on the performance of basic education, including both private and confessional organizations. Design/methodology/approach This study is based on a positivist view of science and adopts a quantitative approach. A survey was conducted that received 242 answers, which were analyzed using structural equation modeling. Findings All the knowledge management processes were found to impact all the dimensions of organizational performance in the schools. The role knowledge creation exerts on people in the organization was made apparent, as was the way in which knowledge storage impacts three Balanced Scorecard dimensions, namely, people, internal processes and sustainability. Research limitations/implications This research is limited to private confessional basic education schools in Brazil that work at one or more levels of basic education. Practical implications This research is intended to help educational managers improve their knowledge management practices and achieve better performance within the educational environment. Originality/value The present study identifies two topics which are still under-investigated in the field of private confessional basic education, namely: the knowledge management processes and the Balanced Scorecard approach.


2017 ◽  
Vol 21 (2) ◽  
pp. 355-375 ◽  
Author(s):  
Daniele Giampaoli ◽  
Massimo Ciambotti ◽  
Nick Bontis

Purpose The purpose of this paper is to empirically test the link between knowledge management practices, problem-solving processes and organizational performance. Design/methodology/approach This study uses survey data from 112 leading Italian companies. To test the structural relations of the research model, we used the partial least squares method. Findings Results show a strong relationship between knowledge management practices and intermediate activities of creative problem solving and problem-solving speed. In addition, creative problem solving has a direct impact on both organizational and financial performances, whereas problem-solving speed has a direct effect only on financial performance. Research limitations/implications The focus on top Italian firms limits the generalizability of results. Practical implications This study provides empirical evidence of the importance of knowledge management practices for problem-solving activities and firm performance. Originality/value The present paper fills an important gap in the extant literature by conceptualizing and empirically testing the relationship between knowledge management, problem-solving processes (creative problem solving and problem-solving speed) and firm performance. This study is the first ever to study these relationships within the Italian context.


2020 ◽  
Vol 37 (1) ◽  
pp. 30-37
Author(s):  
Edwin Alexander Henao-García ◽  
Nelson Lozada ◽  
Jose Arias-Pérez

The relationship between knowledge management (KM) and firm performance is an interesting field for both scholars and practitioners. Despite the extant literature, more studies are required in order to clarify the abovementioned relationship. The purpose of this article is to examine the impact of KM practices on financial and nonfinancial performance. KM practices are knowledge creation practices, continuous learning practices (CLP), knowledge and feedback systems (KFS), and management of employees’ individual competencies. Methodologically the study uses partial least squares structural equation modeling. The results show that KFS affect firms’ financial performance and that CLP do not influence oneither financial or nonfinancial performance.


2014 ◽  
Vol 18 (1) ◽  
pp. 52-74 ◽  
Author(s):  
Hsiu-Fen Lin

Purpose – Drawing from knowledge-based view and balanced scorecard approach, this study seeks to develop an integrative model to examine the influence of two knowledge management (KM) strategies, codification KM strategy and personalization KM strategy, on the multi-stage KM evolution (KM adoption, implementation and institutionalization stages), which in turn affects balanced scorecard outcomes (financial performance, internal process performance, customer performance, and growth and learning performance). Design/methodology/approach – Survey data from 244 managers (currently and directly in charge of KM activities) in large Taiwanese firms were collected and used to test the research model using the structural equation modeling (SEM) approach. Findings – The results have revealed that both the codification KM strategy and personalization KM strategy are positive factors for stage-based KM evolution, but their relative importance differs across the three subsamples. Additionally, the results showed that the internal process and customer perspectives play a critical role in measuring performance during the earlier stages of KM evolution, while the financial and learning and growth perspectives emphasize the performance achievements from the latter stages. Practical implications – Since KM implementation is an evolutionary process, using both financial and non-financial measures to assess organizational performance through KM efforts, such as the four balanced scorecard perspectives, can take full advantage of stage-based KM evolution. The results indicate that the time-lag effect is critical to distinguishing different forms of organizational performance. Originality/value – Theoretically, this study aims to provide a research model that is capable of understanding the antecedents and consequences of staged-based KM evolution. From a managerial perspective, the findings of this study provide valuable guidelines to policy-makers and practitioners in accelerating KM evolution and achieving organizational performance.


2018 ◽  
Vol 22 (3) ◽  
pp. 315-332 ◽  
Author(s):  
Tatiana Gavrilova ◽  
Artem Alsufyev ◽  
Anastasiia Pleshkova

Purpose The purpose of this paper is to develop the model of knowledge management influence on company performance for further empirical testing of the links between knowledge management practices and processes and organizational performance. Design/methodology/approach This study establishes a model for comprehensive analysis of knowledge management’s influence on performance and describes the preliminary results gained from the experience of 120 Russian companies. For further testing structural equation modelling and the partial least squares methods are proposed. Findings The results of the literature review justify the importance of the study conducting this study in the field of knowledge management and its connection to organizational performance in the developing market of Russia. A theoretical model for future empirical testing is provided and methods suggested for further data analysis and interpretation. The preliminary conclusions are discussed. Research limitations/implications The focus on Russian firms limits the generalizability of the results. The non-response bias is also taken into account for further study. Practical implications This pilot study outlines the importance of knowledge management practices and processes for firm performance. The preliminary results will be interesting both for researchers and practitioners in the countries with the developing economies. The final results will provide new insights in understanding and formalizing the portrait of a typical Russian company with regards to knowledge management policies. Originality/value Few studies have been published on the knowledge management process within the Russian context. This study is expected to encourage future studies in this field. The present paper fills an important gap in the extant literature by conceptualizing the model for knowledge management performance analysis and proposes empirical testing of the relationship between knowledge management and firm performance in the context of a developing country that will be presented later as the direction for future study. This study is one of the first ever to study these relationships within the Russian context.


Author(s):  
Gholamhossein Mehralian ◽  
Jamal A. Nazari ◽  
Golnaz Nooriparto ◽  
Hamid Reza Rasekh

Purpose The purpose of this paper is to examine the relationship between the implementation of total quality management (TQM) and organizational performance, using the balanced scorecard (BSC) approach. Design/methodology/approach In order to investigate the relationship between TQM and BSC, a questionnaire was developed and distributed to 30 largest pharmaceutical distribution companies in Iran. Structural equation modeling was used to evaluate the measurement model and to test the research hypotheses using the data from 933 completed questionnaires. Findings The results supported the research model and revealed that TQM implementation can positively and significantly influence the BSC and its four perspectives. Practical implications Considering the strong association between TQM and all four perspectives of organizational performance (BSC), managers should strongly leverage the implementation of TQM practices in order to reach their strategic objectives. Originality/value This study is the first empirical study conducted on the association of TQM and BSC in the pharmaceutical industry. The findings of this study provide strong evidence supporting the implementation of TQM in the pharmaceutical context.


2019 ◽  
Vol 57 (8) ◽  
pp. 1902-1922 ◽  
Author(s):  
Roberto Chierici ◽  
Alice Mazzucchelli ◽  
Alexeis Garcia-Perez ◽  
Demetris Vrontis

Purpose The purpose of this paper is to empirically investigate how big data collected from social media contribute to knowledge management practices, innovation processes and business performance. Design/methodology/approach The study used 418 questionnaires collected from firms that actively invest in marketing, advertising and communication in the Italian market. The hypotheses testing and analysis were conducted using structural equation modeling. Findings The results reveal that customers’ data gathered from social media produce different effects on knowledge management practices and firms’ innovation capacity. Furthermore, increased innovation capacity turned out to affect customer relationship performance directly, while it contributes to gain better financial performance only when it is used to gain relational outcomes. Originality/value The outcomes of the study help firms to develop a clear understanding about which big data retrieved from social media can be useful to improve their knowledge management practices and enhance their innovation capacity. Moreover, by investigating the mediating role of big data knowledge management in the context of social media knowledge acquisition and innovation capacity, this study also extends the mediation variables used to understand the relationship between knowledge capabilities and practices and innovation constructs.


Author(s):  
Vikas Gupta ◽  
Meenu Chopra

Purpose This paper aims to explore knowledge management (KM) literature to understand the relationships among different KM practices and organizational performance (OP) in terms of the four balanced scorecard (BSC) outcomes, i.e. learning and growth, internal process, customer satisfaction and financial performance, as a measure of OP. Design/methodology/approach A systematic review of peer-reviewed journal articles has been carried out of theoretical and empirical articles to understand the linkages between KM practices and OP, accessed mainly through sources, such as ProQuest, EBSCO host, Google Scholar and other e-databases. Measures of OP have also been extracted from the literature and grouped under the four BSC outcomes to gauge the gravity of the effect. An integrated conceptual framework helps to explore the relationship between the said variables. Findings This study provides a conceptual model of the effect of various KM practices on different aspects of OP measured through BSC. It contributes to organizations by helping them understand the importance of integration of the KM efforts to obtain desirable results. It will, for the first time, put the entire organization in perspective and help managers draw a bigger picture to understand the overall effect of KM practices. Research limitations/implications First, the KM practices shortlisted for this research are extensive but the list may not be exhaustive. Second, the model is not empirically proved. Findings of the study would help in creating a roadmap to enhance performance by a successful implementation of KM practices. Originality/value This paper contributes to KM literature by adding the fact that KM practices not only affect learning and growth perspective of an organization but also have far-reaching effects on OP in terms of customer service perspective, internal process perspective and financial perspective.


2018 ◽  
Vol 24 (2) ◽  
pp. 459-477 ◽  
Author(s):  
Ahmed Attia ◽  
Ingy Salama

Purpose The purpose of this paper is to examine the effect of knowledge management capabilities (KMCs) on supply chain management practices (SCMP) and organizational performance (OP) in firms, in addition to examining the effect of supply chain management on OP. Design/methodology/approach To demonstrate the effect of KMCs on SCMP, and OP, different techniques such as factor analysis, correlation analysis, and structural equation modeling were used to verify the validity of the proposed conceptual model and to test the suggested hypotheses, using data collected from 165 companies in the Saudi food industry (representing a response rate of 74.9 percent). Findings According to the study’s findings, SCMP are positively affected by KMCs. Moreover, OP is directly affected by KMCs and SCMP. Research limitations/implications Due to the specific nature of the sample, the findings of the current research are applicable only to the food industry. Originality/value The current research introduced a conceptual model, which has been tested and verified in the Saudi food industry. The findings recommend that both KMCs as well as SCMP will contribute to improving the OP. In addition, KMCs will improve the SCMP.


2015 ◽  
Vol 28 (1) ◽  
pp. 131-159 ◽  
Author(s):  
Changiz Valmohammadi ◽  
Mohsen Ahmadi

Purpose – The purpose of this paper is to present a holistic approach regarding evaluation of knowledge management (KM) practices on organizational performance. The effects of seven critical success factors (CSFs), namely leadership role, organizational culture, KM strategy, processes and activities, training and education, information technology, and motivation and rewarding system, on organizational performance in the framework of four perspectives of balance scored card (BSC) approach were surveyed. Design/methodology/approach – The research hypotheses were raised based on the four perspectives of this approach, namely, growth and learning, internal processes, customer and financial. By literature review, CSFs of KM and organizational performance along with their items were identified in the framework of BSC’s perspectives. Based on these constructs and their items an instrument was designed and distributed among managers and employees of the subsidiary firms of Iran National Petrochemical Company (INPC). Reliability of the instrument was calculated by Chronbach’s α for the two sections of the instrument i.e. KM practices and organizational performance. Also, using factor analysis the construct validity of the questionnaire was approved. Finally, based on the hypotheses of the study and using structural equation modeling the impacts of KM practices on organizational performance were investigated. Findings – The results revealed that KM practices positively and meaningfully (though weak) impact overall organizational performance. This impact is significant only regarding growth and learning dimension and on the other dimensions is insignificant. Also, as customer and financial constructs were loaded on one factor based on the entity of their indicators we considered these two constructs as stakeholders construct. In addition, among the above mentioned seven CSFs, motivation and rewarding system obtained the lowest rank among the survey organizations. Research limitations/implications – The sample is restricted to only three companies, so gathering data from various parts of Iran including both manufacturing and service industries could increase the generalizability of the results obtained. Also, as in this study the data gathered were cross-sectional, a longitudinal study could help gain deeper understanding of the cause-and-effect relationship among the variables. Originality/value – The most significant gap in the literature is the lack of enough application of statistical and comprehensive methods like BSC that KM makes a difference to organizational performance. This study contributes to the field of KM by empirically investigating the impact of KM practices on various measures of organizational performance in order to prove the suitability of a comprehensive approach like BSC.


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