Conditions of knowledge management, innovation capability and firm performance in Colombian NTBFs

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Julio César Acosta-Prado ◽  
Ana Karina Romero Severiche ◽  
Arnold Alejandro Tafur-Mendoza
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
Economic Performance ◽  
Test Reliability ◽  
Measurement Scale ◽  
Evidence Based ◽  
Validity Evidence ◽  
Management Innovation ◽  
Innovation Capability ◽  
Content Type

Purpose This paper aims to build and analyse the validity and reliability of a measurement scale that establishes the relationship between conditions of knowledge management, innovation capability and firm performance in Colombian New Technology-Based Firms (NTBFs). Design/methodology/approach An instrumental study was carried out because of the design and revision of the psychometric properties of a scale. The techniques used for the statistical analysis were carried out in three sequences, namely, the first consists in collecting validity evidence based on test content; the second in an exploratory and confirmatory factor analysis to gather validity evidence based on internal structure; and third, estimate the test reliability of internal consistency through omega coefficient. Findings The results obtained show that the proposed measurement scale complies with the psychometrics properties required for a measurement instrument in social sciences. Originality/value The model of measurement scale, including three important constructs for firms, namely, conditions of knowledge management, innovation capability and firm performance, were not tested before for NTBFs. In this way, the present study contributes to the business sector. Finally, this scale can be useful to measure the variables studied in NTBFs of other countries, considering strategic purpose, flexible structure, information and communications technology and internal environment as internal conditions, and, as an external condition, the competitive environment, as conditions of knowledge management; exploration, exploitation and organizational ambidexterity as elements of innovation capability; and the non-economic performance and economic performance as one-dimensional structures.

Customer knowledge management, innovation capability and business performance: a case study of the banking industry

2014 ◽  
Vol 18 (3) ◽  
pp. 591-610 ◽  
Author(s):  
Nastaran Taherparvar ◽  
Reza Esmaeilpour ◽  
Mohammad Dostar
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
External Environment ◽  
Knowledge Flows ◽  
Innovation Capability ◽  
Customer Knowledge ◽  
Content Type ◽  
Customer Knowledge Management ◽  
Private Banks

Purpose – This paper aims to examine the effect of customer knowledge management (CKM) on continuous innovation and firm performance in 35 private banks in Guilan (Iran). CKM emerges as an important and effective system for innovation capability and firm performance. However, the role of CKM in innovation and performance is not well understood. Design/methodology/approach – Data have been collected via questionnaires from managers of private banks in Guilan. Feedback was received from 265 managers in 350 distributed questionnaires, and hypotheses were tested using the structural equation modelling. Findings – The results of this paper indicate that knowledge from customers has a positive impact on both innovation speed and innovation quality as well as operational and financial performances. Also, our results demonstrate a different effect of knowledge about customer and knowledge for customers on various dimensions of innovation and firm performance. By using customer’s knowledge flows, firms will be aware of external environment and new changes in customers’ needs and so will be more innovative and perform better. Practical implications – CKM is known as an important system to connecting internal environment to external environment to create novel ideas. The results of this paper shed light on the consequences of CKM on firms and provide support for the importance of CKM to enhance innovation capacity and firm performance. Originality/value – This article is one of the first to find empirical support for the role of CKM within firms and its importance on innovation capability and firm performance. This study can provide valuable insights and guidance for researchers and managers as well.

Measurement of innovation capability in supply chain: an exploratory study

2016 ◽  
Vol 8 (4) ◽  
pp. 331-349 ◽  
Author(s):  
Faisal Iddris
Keyword(s):  
Factor Analysis ◽  
Supply Chain ◽  
Exploratory Factor Analysis ◽  
Convergent Validity ◽  
Measurement Scale ◽  
Unique Contribution ◽  
Innovation Capability ◽  
Content Type ◽  
Four Dimensions ◽  
Idea Management

Purpose The purpose of this paper is to explore the development of innovation capability construct measures in the context of supply chain and to objectively identify the key dimensions for stimulating focal firms’ innovativeness. Design/methodology/approach The scale items for this research were obtained from extant literature. The data were collected from homogenous sample of 117 Ghanaian middle level managers (respondents). Exploratory factor analysis was used to identify the main dimensions of innovation capability. Based on the statistical analysis, four dimensions were obtained – idea management, idea implementation, collaboration and learning – and the convergent validity, discriminant validity, nomological validity and reliability tests indicate that the scales are valid and reliable Findings Four dimensions (factors) of innovation capability were identified from the exploratory factor analysis. These dimensions were labelled as idea management, idea implementation, collaboration and learning. The results indicate that the integration of the dimensions of innovation capability may stimulate a focal firm’s innovativeness. Research limitations/implications First, the measurement scale might not capture all the important dimensions of innovation capability. Second, the judgmental sampling used in this study means that the result cannot be generalised to the entire supply chain population, third, the sample was drawn from one geographical location using non-probability sampling technique. Practical implications The measures provide supply chain managers with a better approach of understanding the innovation capability in their supply chain. For instance, the measurement of supply chain’s innovation capability should help supply chain managers to determine the important innovation areas that need attention most and to permit them to respond to challenges posed by any kind of innovation capability dimension that needs to be enhanced. Originality/value The unique contribution of this paper is the development innovation capability measurement scale in the context of supply chain.

Influence of transformational leadership and knowledge management on radical and incremental innovation: the moderating role of collaborative culture

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tu Ngoc Nguyen ◽  
Chao Hong Shen ◽  
Phong Ba Le
Keyword(s):  
Transformational Leadership ◽  
Knowledge Management ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Collaborative Culture ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role ◽  
Positive Effects

PurposeThe purpose of this study is to explore the influence of transformational leadership (TL) on a firm's radical and incremental innovation. It also deepens the understanding of appropriate mechanisms and conditions to improve specific aspects of innovation by examining the mediating role of knowledge management capability (KMC) and moderating mechanism of collaborative culture.Design/methodology/approachThis study utilized structural equation modeling (SEM) and cross-sectional design to test hypotheses in the proposed research model using survey data collected from 365 participants in 86 manufacturing and service firms.FindingsThe findings indicate that TL induces greater effect on radical innovation compared to its effect on incremental innovation. The mediating role of KMC between TL and aspects of innovation capability is also supported. Especially, the influences of KMC on specific aspects of innovation capability are different and depend on the degree of collaborative culture in an organization.Research limitations/implicationsFuture research should examine the mediating mechanisms of knowledge acquisition, knowledge sharing and knowledge application to provide deeper insight into specific roles of knowledge management's constituents in linking TL and innovation capability.Practical implicationsThe paper significantly contributes to increasing the understanding of the link between TL and specific aspects of innovation capability by highlighting the important role of KMC and positive effects of collaborative climate in an organization.Originality/valueThe paper is unique in the attempts to provide a prospective solution for firms to pursue and improve innovation based on the meaningful insights into the mediating role of KMC and moderating effect of collaborative culture in the relationship between TL and specific dimensions of innovation capability.

How to be agile: the distinctive roles of IT capabilities for knowledge management and process integration

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
One-Ki Daniel Lee ◽  
Peng Xu ◽  
Jean-Pierre Kuilboer ◽  
Noushin Ashrafi
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
Process Integration ◽  
Negative Impact ◽  
Market Competition ◽  
The United States ◽  
Strategic Decision ◽  
Content Type ◽  
It Capability ◽  
It Capabilities

PurposeThe purpose of this study is to understand how IT capabilities for knowledge management and process integration can build a firm's agile process capabilities for sensing, strategic decision and responding. The study also investigates how the three agile capabilities affect firm performance in different competitive environments.Design/methodology/approachThis study conducted a large-scale field survey with firms in the United States. Survey invitations were sent to business executives of the target firms. A total of 254 complete samples were collected for our hypotheses test.FindingsThe results confirm the overall significant roles of IT capabilities in the three agile capabilities. The results further reveal that the IT capability for knowledge management has a higher influence on sensing capability, while the IT capability for process integration has a higher influence on responding capability. Moreover, strategic decision and responding capabilities are more important in the high market competition. However, in the low market competition, sensing capability becomes more important while responding capability demonstrates a negative impact on firm performance.Originality/valueThis study helps both academics and practitioners better understand a firm's IT-agility-performance mechanism. Particularly, our findings guide how to achieve agile capabilities and what to focus on under the different levels of market competition.

Corporate social responsibility, innovation capability and firm performance: evidence from SME

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dawit Bahta ◽  
Jiang Yun ◽  
Md Rashidul Islam ◽  
Muhammad Ashfaq
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Financial Performance ◽  
Developing Country ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this paper is to examine corporate social responsibility (CSR) and its effect on small and medium enterprises’ (SMEs) innovation capability and financial performance from the perspective of a developing country. It also aims to explore the role of innovation capability as a mediating factor in the linkage between CSR and SMEs’ financial performance. Design/methodology/approach A questionnaire was distributed among managers/owners of the sampled companies. Using a data set of 402 Eritrean firms and partial least squares structural equation modeling, direct and mediating effects were tested. Findings The result reveals that CSR has a positive and significant effect on the financial performance and innovation capability of SEMs. Besides, innovation capability has a positive and significant effect on the business performance of SMEs. The result also supports a partial mediation effect of innovation capability on the association between CSR and firm performance. Practical implications The findings from this research could enhance the awareness of the entrepreneurs, researchers and policymakers on CSR-SMEs’ relationship and help understand the importance of CSR as a crucial driver mechanism for companies to become more innovative and competitive. Originality/value By empirically examining the relationship between CSR, innovation capability and performance in SMEs, this study contributes to the ongoing scholarly discussion on the linkage between CSR and financial performance. Also, to the best of the authors’ knowledge, no other study investigated the mediating role of innovation capability on the link between CSR activities and firms’ financial performance in SMEs from a developing country perspective, making substantial contributions to research in terms of theory, practice and policy.

Knowledge management, problem solving and performance in top Italian firms

2017 ◽  
Vol 21 (2) ◽  
pp. 355-375 ◽  
Author(s):  
Daniele Giampaoli ◽  
Massimo Ciambotti ◽  
Nick Bontis
Keyword(s):  
Knowledge Management ◽  
Problem Solving ◽  
Firm Performance ◽  
Organizational Performance ◽  
Management Practices ◽  
Management Problem ◽  
Creative Problem Solving ◽  
Content Type ◽  
Knowledge Management Practices ◽  
Creative Problem

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.

Evaluating the role of social capital, tacit knowledge sharing, knowledge quality and reciprocity in determining innovation capability of an organization

2019 ◽  
Vol 23 (6) ◽  
pp. 1105-1135 ◽  
Author(s):  
Anirban Ganguly ◽  
Asim Talukdar ◽  
Debdeep Chatterjee
Keyword(s):  
Social Capital ◽  
Knowledge Management ◽  
Knowledge Sharing ◽  
Tacit Knowledge ◽  
Innovation Capability ◽  
Content Type ◽  
Primary Survey ◽  
Knowledge Quality ◽  
Tacit Knowledge Sharing

Purpose Knowledge sharing has become an integral part of organizations’ business strategies, along with aiding organizations to grow and innovate in the market, and gain competitive advantage. This paper aims to concentrate on the role of tacit knowledge sharing in fostering innovation capability of an organization. Specifically, the study considers social capital (relational, cognitive and structural) as an important precursors to tacit knowledge sharing, which in turn, influences innovation capability of an organization. The study further discusses the role that knowledge reciprocation plays in successful tacit knowledge sharing. The relation between knowledge quality and innovation capability is also discussed in the paper. Design/methodology/approach The investigation started with a review of extant literature in the field of knowledge sharing and innovation to derive a set of constructs. A set of hypotheses was developed based on the identified constructs, which was subsequently validated through a primary survey based on a structured questionnaire on a sample size of 190 respondents from the Indian industrial domain. The survey responses were subsequently analysed using the statistical technique of structural equation modeling and conclusions were drawn from the findings. Additionally, careful attention was paid in eliminating the common method bias, which is often associated with a primary survey. Findings A set of six hypotheses were derived based on the identified constructs and were subsequently validated. While validating the hypotheses, it was observed that while knowledge reciprocity, relational social capital and cognitive social capital was positive associated with tacit knowledge sharing, structural social capital did not have a significant effect on the same. Additionally, it was also observed that both tacit knowledge sharing and the quality of knowledge were positively associated with innovation capability. Practical implications The present day business marked by intense competition requires firms to be more aware of their innovative capabilities. Effective sharing of knowledge or information can be deemed as a vital component in achieving this objective. Organizations that practice and nurture innovation activities can use the findings of the current study as a part of their knowledge management strategy. In addition to using the explicit knowledge, which are structured in nature, organizations can also start using tacit knowledge to harness their innovation potential – and the findings from the current study can act as a motivational tool for them to do so. Originality/value Although there is a growing body of literature concerning the role of knowledge management in innovation, there still a dearth in discussing the role of tacit knowledge sharing in exploiting the innovation capability of an organization. The main discussion of this paper brings together a set of important constructs that exhibits the significant role that tacit knowledge sharing plays in determining the innovation capability of an organization. Furthermore, it tries to marry the concepts of social capital and tacit knowledge sharing with innovation capability, therefore adding significantly to the body of literature in knowledge management as well as innovation.

Sustainable development of micro firms: examining the effects of cooperation on handicraft firm's performance through innovation capability

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohsin Shafi
Keyword(s):  
Sustainable Development ◽  
Firm Performance ◽  
Measurement Errors ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Supplier Relationships ◽  
Control Measurement ◽  
Content Type ◽  
Internal Development ◽  
The Impact

PurposeDespite their economic and cultural significance, the growth of handicraft micro firms is vulnerable, given their small size and resource limitations. By examining the impact of cooperation on firm performance via innovation capability, this study shows how micro firms can address constraints and achieve sustainable development by acquiring and utilizing external resources, complemented by innovation capability, through internal development.Design/methodology/approachData were collected from 164 handicraft micro firms in Pakistan via a questionnaire. Structural equation modeling was employed to estimate interrelations of various constructs simultaneously and control measurement errors.FindingsThe impact of cooperation with customers and suppliers on firm performance via innovation capability was positive and significant. Contrarily, competitor cooperation did not significantly affect innovation capability. Furthermore, there was a positive and significant interaction effect of customer and competitor cooperation on innovation capability. Thus, micro firms must reinforce their customer and supplier relationships through innovation capability and internal transformation for sustainable development. Moreover, a balance must exist between cooperation and competition to achieve optimal innovation returns for the sustainable development of firms.Originality/valueThis study emphasized that micro firms must strengthen their customer and supplier relationships via innovation capability and internal development to achieve higher performance. Moreover, the study introduced a new dimension for measuring firm performance.

Knowledge diversity and firm performance: an ecological view

2016 ◽  
Vol 20 (4) ◽  
pp. 671-686 ◽  
Author(s):  
Deng-Neng Chen ◽  
Ting-Peng Liang
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
Organizational Performance ◽  
Company Performance ◽  
Content Type ◽  
Knowledge Diversity ◽  
Ecological View ◽  
New Perspective ◽  
The Stability ◽  
The Impact

Purpose Knowledge has been considered a crucial organizational asset for gaining competitive advantages. It is critical for a firm to maintain a knowledge composition that is productive. This study aims to examine the applicability of the diversity–stability principle in ecology to knowledge management and further investigate the impact of knowledge diversity on firm performance. Design/methodology/approach A theoretical framework for knowledge diversity and firm performance is proposed; a questionnaire survey was conducted to evaluate the research framework. Fifty-eight valid responses from experts were collected to measure knowledge strength and diversity of 20 enterprises in four industries, and financial indexes of the 20 enterprises from 2008 to 2012 were collected to analyze the research model. Findings The results show that higher information technology (IT) capabilities in a firm lead to higher levels of knowledge strength and diversity. The strength and diversity of knowledge in a company can improve average company performance and reduce performance variations. Research limitations/implications This paper presents a new perspective that applies the ecological concept of diversity to examine the value of knowledge in organizations. The findings expand our understanding of the role of IT and knowledge in organizational performance. A limitation is that the sample size is relatively small, which may limit the generalizability of the findings. Practical implications CEOs and chief knowledge officers can apply the findings herein to assess their organizational knowledge profiles and maintain a healthy knowledge ecology in strategic planning. They should be aware that both knowledge strength and knowledge diversity are crucial to the stability of firm performance. Originality/value The ecological view of knowledge management stresses the importance of maintaining a healthy intensity and diversity of knowledge at the macro level and indicates a new direction for knowledge management.

Examining the influence of business environment on socio-economic performance of informal microenterprises

2015 ◽  
Vol 35 (3/4) ◽  
pp. 273-288 ◽  
Author(s):  
Eijaz Ahmed Khan ◽  
Mohammed Quaddus
Keyword(s):  
Firm Performance ◽  
Field Study ◽  
Economic Performance ◽  
Structural Equation ◽  
Business Environment ◽  
Partial Least Square ◽  
Least Square ◽  
Business Practices ◽  
Mixed Method Research ◽  
Content Type

Purpose – This study realize that the relationships between business environment and firm performance in context of small- and medium-sized enterprises and large organizations is well understood and focused, but less research has been done on microenterprises, especially in informal sector. The purpose of this paper is to examine these relationships. Design/methodology/approach – A mixed method research design was used. In the field study, data were obtained from 14 participants via one-to-one personal interview. Content analysis was applied to extract, classify, and cross-examine of the data. In the quantitative approach, questionnaire was developed and data were collected from 438 informal microenterprises (IMs) owners. The data were analysed using the partial least square structural equation modelling. Findings – Results from this field study and survey recognized these relationships and vibrates well with the existing literature and establish the hypothesis. Practical implications – In order to create more favourable environment and ensure the performance, the policy makers, professional bodies could formulate decent requirements for IMs to have a code of business practices and socio-economic performance. Originality/value – This study provides a first step towards business environment and firm performance in context IMs and makes several contributions to the literature.

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