The impact knowledge management processes on business performance via the role of accounting information quality as a mediating factor

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Al-Dmour ◽  
Hala Zaidan ◽  
Abdul Rahman Al Natour

Purpose This study aims to empirically investigate the role of accounting information quality (AIQ) as a mediating factor in the relationship between knowledge management (KM) processes and business performance (BP) of the financial institutions (FI) operating in Jordan. Design/methodology/approach Based on a literature review and knowledge-based theory, an integrated conceptual framework has been developed to guide the study. The study’s conceptual framework is constituted of three primary constructs, namely, KM processes (acquisition, integration and utilization), BP (financial indicators and non-financial indicators) and AIQ conceptualized using the International Accounting Standard Board’s (2010) framework fundamental qualitative characteristics (relevance, understandability, faith representation and comparability). Data has been collected through a self-administered questionnaire applied to 247 respondents. The targeted respondents have been FIs (commercial banks and insurance companies) in Jordan. Findings The main findings supported accounting information as a mediator factor in enhancing the relationship between the FIs’ KM process and BP (FI) operating in Jordan. Originality/value This study contributed to theory by filling a gap in the literature regarding the role AIQ as a mediator factor between the KM process and BP of the FI operating in Jordan as a developing country.

Kybernetes ◽  
2019 ◽  
Vol 48 (9) ◽  
pp. 1942-1964 ◽  
Author(s):  
Mona Jami Pour ◽  
Mohammad Asarian

Purpose Despite the huge amount of studies that have investigated the strategy–performance relationships and knowledge management (KM)–performance relationships, there is little consensus regarding the nature of these connections. By reviewing related literature, some notable limitations and inconsistent results are highlighted in extant studies. To address these challenges, this study aims to explore the effects of strategic orientation and KM mechanisms on business performance. Design/methodology/approach The study conducted an empirical investigation of 227 small- and medium-sized enterprises (SMEs) to explore the relationship between strategy−performance and KM−performance. Business strategy is conceptualized as a comparative construct with six dimensions, KM is conceptualized by two types of KM mechanisms of technical and non-technical KM mechanisms and business performance is measured by four dimensions of balanced scorecard (BSC). The cluster analysis was used to explore different aspects of these three constructs. Findings Using cluster analysis, the results indicate that firms with high level of analysis, defensiveness, futurity and proactiveness in strategic orientation have better performance and also the high level of both KM mechanisms another important finding shows that firms with more KM mechanisms have high performance and technical mechanisms have more predictor role on performance. Practical implications This research also has prescriptive implications for strategic managers and KM practitioners. The finding enhanced the understanding of the relationship between strategic orientations, KM and performance. The results assist managers to assess business performance regarding strategic orientations and KM mechanisms of the firms. Therefore, it helps firms to improve strategic resource allocation and exploit KM investment by considering ideal pattern of the performance. Originality/value By reviewing strategic management and KM literature, it is revealed that there are little studies about how the interaction of strategic orientation and KM influences business performance. The main contribution of the study is exploring the profile of the firms by considering their strategic orientation and KM mechanisms and their impact on business performance. This study provides an empirical evidence about interaction of strategic orientations, KM mechanisms and business performance in SME context, which is merely investigated in previous researches.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Behrooz Ghlichlee ◽  
Fatima Bayat

Purpose Within the retail banking sector, the customer-centric business model has become an important and new business trend in recent years. The enhancement of the frontline service employees’ engagement and their customer-oriented behaviors are among the key factors affecting business performance (BP) in this sector of the banking industry. The purpose of this paper is to improve management decisions to enhance BP through examining the relationship between the frontline employees’ engagement and BP while taking into account the mediating effect of customer-oriented behaviors on this relationship. Design/methodology/approach A quantitative approach was adopted to conduct the present study, and the respondents were sampled from a large commercial bank in Iran using a structured questionnaire. Overall, 50 branch managers and 90 frontline employees were selected using random sampling. A confirmatory factor analysis was conducted to ascertain the validity and reliability of the observed items and a structural equation model was used for testing the proposed hypotheses and research framework. Findings The findings showed that customer-oriented behaviors mediated the relationship between the frontline employees’ engagement and bank’s branches’ BP. Higher levels of the frontline employees’ engagement enhance the customer-oriented behaviors. It was revealed that the frontline employees are engaged in their job and organization. Moreover, the engaged frontline employees listen carefully to customers, the customer’s problem is important to them and they complete their tasks precisely for customers. It has been confirmed that customer-oriented behaviors enhance branches’ BP. The bank frontline employees’ engagement and customer-oriented behaviors, in turn, affected the bank’s branches’ financial performance, process performance and employee performance compared with the bank’s key competitors. Research limitations/implications This study highlights the value of empirically establishing how employee customer-oriented behaviors are affected by employee engagement as an integrative construct bringing together BP. Practical implications This study can help improve BP by increasing the frontline employees’ engagement and their customer-oriented behaviors. This study suggests that organizations using the findings of this study could effectively assess their frontline employees’ engagement and their customer-oriented behaviors and then plan for improving them. Social implications This study offers a customer-oriented initiative as a social responsibility to be considered by retail banks. In light of the social exchange theory, the banks valuing customer-oriented can provide employees with knowledge, skills, values and support to develop motivation and abilities to demonstrate customer-oriented organizational citizenship behaviors. Originality/value Previous studies demonstrated that the employees’ engagement affects their customer-oriented behaviors. In addition, studies have referred to the effect of employees’ customer-oriented behaviors on BP. However, to the best of the knowledge, key questions regarding how the employees’ engagement at the branch level fosters customer-oriented behaviors and, in turn, the bank’s branches’ BP, remain unanswered. Hence, this study contributes to the investigation of the mediating role of the frontline employees’ customer-oriented behaviors in the relationship between their engagement and branches’ BP in the retail banking sector.


2019 ◽  
Vol 14 (2) ◽  
pp. 411-431
Author(s):  
Benlu Hai ◽  
Qingzhu Gao ◽  
Ximing Yin ◽  
Jin Chen

Purpose Significant increase or decrease in research and development (R&D) expenditure may have an immense impact on market value. Based on the punctuated equilibrium theory, this paper aims to empirically analyze the impact of R&D volatilities on market value and the moderating effect of executive overconfidence. Design/methodology/approach The study uses the panel data set that covers 902 Shanghai and Shenzhen A-share manufacturing listed firms and multiple regression method to test the theoretical hypotheses. Findings The results show that both positive and negative R&D volatilities have a robust and significant positive impact on the market value. Further analysis shows that the executive overconfidence positively moderates the relationship between R&D volatilities and market value. Research limitations/implications In a rapidly changing and highly competitive environment, firms should recognize that the balance of innovation strategies will help to bring higher market value. Furthermore, firms could improve corporate governance to make the best of managerial characteristics, such as overconfidence, on the innovation decision-making process. Originality/value By pushing the static perspective to a dynamic perspective and empirically documenting the role of executive overconfidence, this study contributes to the literature on the relationship between R&D expenditure and market value, generating theoretical and practical insights for firms to improve innovation governance and innovation strategies to achieve better business performance.


2019 ◽  
Vol 53 (7) ◽  
pp. 1333-1354 ◽  
Author(s):  
Sean Yim ◽  
Young Han Bae ◽  
Hyunwoo Lim ◽  
JaeHwan Kwon

Purpose The authors use signaling theory in proposing a conceptual framework that simultaneously incorporates both the mediating effects of corporate reputation (CR) and the moderating effects of marketing capability (MC) into the corporate social responsibility (CSR)–corporate financial performance (CFP) link and theorize a single moderated mediation model. The empirical results of the research confirm the theorized moderated mediation model among the four variables, where a firm’s CR plays a mediating role in the relationship between CSR and CFP, and a firm’s MC moderates the effect of CSR on CR exclusively in the first link. Both theoretical and practical implications of the moderated mediation model are discussed. Design/methodology/approach This study uses structural equation model estimations with the relevant secondary datasets collected from publicly available databases. Findings The empirical results confirm the theorized moderated mediation model in the conceptual framework that uses signaling theory. Specifically, the results identify the moderating role of MC in only the CSR- CR link (but not in the CR and CFP link), such that CR plays a moderated mediation role in the CSR–CFP link. Research limitations/implications The current research is not without limitations. These limitations mainly stem from data sets used in the empirical analyses. More details are discussed in the limitations and future research directions section. Practical implications The empirical findings suggest that a firm needs to develop a consolidated CSR-marketing program, simultaneously satisfying stakeholders’ needs for both the firm’s socially desirable business practices and value-creating marketing programs to increase its CR, which will, in turn, lead to better profitability for the firm. Originality/value To the best of the authors’ knowledge, the current research is the first to use signaling theory in building a conceptual framework that theorizes a moderated mediation model regarding the simultaneous effects of CR and MC on the relationship between CSR and CFP and to empirically test this conceptual framework of the single moderated mediation model. By doing so, the current research clarifies an unanswered question in the literature of whether the underlying mechanism in the CSR–CFP link is based on a mediated moderation or moderated mediation of CR and MC.


2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.


2017 ◽  
Vol 21 (3) ◽  
pp. 553-570 ◽  
Author(s):  
Isabel Martinez-Conesa ◽  
Pedro Soto-Acosta ◽  
Elias George Carayannis

Purpose This study aims to shed light on the internal and external antecedents of open innovation (OI) in the context of small- and medium-sized enterprises (SMEs), with a special focus on the role of knowledge management (KM) capability. The paper develops and tests an integrative research model which assesses the effect of internal factors on KM capability; the impact of organizational and external factors, namely, KM capability and environmental dynamism, on OI; and whether environmental dynamism moderates the relationship between KM capability and OI. Design/methodology/approach Drawing on the knowledge-based view and the social exchange and the contingency theories, this paper develops an integrative research model which analyzes several relations between organizational antecedents of KM capability and its effect on OI by using covariance-based structural equation modeling on a data set of Spanish SMEs. Findings Results confirm that information technology-supported operations and commitment-based human resource practices have a positive and significant influence on KM capability. In contrast, results do not find support for the relationship between interdepartmental connectedness and KM capability, whereas both KM capability and environmental dynamism have a direct influence on OI. Originality/value This paper adds to existing research on OI, as it is the first study that addresses the critical role of KM capability for the implementation of OI.


2018 ◽  
Vol 22 (6) ◽  
pp. 1310-1331 ◽  
Author(s):  
Vito Manfredi Latilla ◽  
Federico Frattini ◽  
Antonio Messeni Petruzzelli ◽  
Martina Berner

Purpose This paper aims to provide a comprehensive academic literature review on the relationship between knowledge management, knowledge transfer and organizational performance in a specific subset of the creative industry, i.e. arts and crafts organizations. Furthermore, this paper analyzes how knowledge management and transfer within arts and crafts organizations help increase performance and enhance the value of the activity of the so-called “knowledge workers” (i.e. craftsmen), who are the real knowledge owners in the process of value creation. Design/methodology/approach The literature review follows the model suggested by Vom Brocke et al. (2009). The review follows a five-phase approach so as to be systematic, transparent and replicable. Academic contributions published over two periods are taken into consideration. The first period covers the years 1990-2000, when the concepts of creative industry and knowledge-based economy were developed. The second period covers the years 2000-2016, when scholars started to investigate how to effectively transfer knowledge (very often in the form of “tacit knowledge”) retained by master craftsmen in arts and crafts organizations and the critical role played by craftsmen in the performance of such organizations. Findings Three main issues have emerged: how arts and crafts organizations manage and transfer knowledge internally; the effects of these activities on organizational performance; and the prominent role of craftsmen. The literature review shows how in arts and crafts organizations there is a considerable link between the concepts of “performance" and "tacit knowledge", even though addressing such link is somehow hard to realize, for several reasons discussed in the paper. The measurement of performance in arts and crafts organizations has become an area of academic investigation only when both the role of knowledge management and transfer and the role of knowledge workers (i.e., craftsmen) have become evident for obtaining a competitive advantage. Research limitations/implications This paper has been an attempt to organize existing studies on knowledge management and transfer and to investigate the relationship existing between knowledge and performance in arts and crafts organizations. Nevertheless, the relationship between knowledge and performance is yet to be explored, as well as the development of techniques for measuring arts and crafts organizations’ performance effectively. The present contribution calls for a systematic reflection on how the transfer of traditional craftsmen’s skills impacts organizational performances in the long run. The definition and implementation of new performance evaluations criteria tailored to enhance the tacit knowledge of craftsmen as a real source of differentiation and competitive advantage for the arts and crafts organizations is somehow still missing. Practical implications By pursuing its objectives, the present contribution aims to represent a step toward enabling arts and crafts organizations to play a vital role in the modern society in a more structured way. This would help to build awareness of the potential of arts and crafts organizations for promoting economic growth, proposing a value proposition different from the one dictated by the globalization and by the triumph of product standardization and mass production. Originality/value Analyzing the knowledge management and transfer within arts and crafts organizations with a historical perspective, it appears that the recognition in academic literature of the centrality of knowledge management and transfer within arts and crafts organizations is only recent (i.e. from 2011 onward). Indeed, for approximately 20 years (i.e. 1990-2010), knowledge has been constantly related to technological paradigms and standardized results, with very little research and debate on craftsmanship and the role of craftsmen. Nevertheless, the research shows that over the years, the focus on knowledge in arts and crafts organizations and knowledge transfer has become progressively more detailed and precise: some authors have studied the role of craftsmen in the knowledge economy according to a historical perspective, while some others have analyzed different types of knowledge more thoroughly. For example, Sveiby (1997, 1996), analyzing the concept of "knowing talent" and "tradition", outlines a more prominent role of craftsmen in the knowledge economy and explain how, in sectors with a strong traditional background, the transfer of tacit knowledge is a meaningful challenge for many organizations.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.


Author(s):  
Somayeh Asghari ◽  
Sahar Targholi ◽  
Ali Kazemi ◽  
Saeed Shahriyari ◽  
Lila Rajabion

Purpose Competitive intelligence (CI) collects data through the distribution of knowledge to make decisions in a competitive environment. To better comprehend the concept of CI, the purpose of this paper is to determine the role of effective factors (knowledge sharing, competitor information, information technology (IT) and organizational culture) and their impact on CI. In addition, the paper provides a conceptual framework for determining the practical factors on CI. Design/methodology/approach For evaluating the elements of the model, a questionnaire is considered. Questionnaires were reread by specialists with significant experiences in the CI field. For statistical analysis, the SPSS 22 and SmartPLS 3.2 software package is also used. Findings Findings from the study showed the validity of the model for a CI assessment. Furthermore, the results confirmed that the competitor information significantly influenced CI. In addition, the obtained results implied that IT has a significant and positive influence on CI. The effect of organizational culture on CI also proved to be positive and significant. Research limitations/implications This paper makes significant contributions for both researchers and practitioners; however, the authors determine some limitations, which are as follows: First, the authors showed the result in a single region. It cannot be assured that the results are generalizable to other areas. Second, because of time and financial constraints, the authors gathered the data using a sample from a single location. Third, the use of variables to depict CI may be not exhaustive. The authors, therefore, encourage future research to study these CI dimensions. Practical implications This study meaningfully contributes to the knowledge and literature by focusing more on CI, examining other significant aspects and applying advanced statistical analysis method. Also, current research results suggest practical implications for marketing practitioners and managers who implemented tools and made strategic plans to enhance the organization’s performance. From a practical perspective, the statistical results support the crucial role of the following factors: IT, competitor information, organizational culture and knowledge sharing on CI. Originality/value Experts in the area of knowledge management, CI and strategic management can use this study to gain a competitive advantage based on knowledge and information resources. Organizations must have knowledge management function and CI to support the strategy formulation, implementation and evaluation.


2015 ◽  
Vol 49 (11/12) ◽  
pp. 1809-1856 ◽  
Author(s):  
Ofer Mintz ◽  
Imran S. Currim

Purpose – This paper aims to develop a conceptual framework, in an effort toward building a contingent theory of drivers and consequences of managerial metric use in marketing mix decisions, this paper develops a conceptual framework to test whether the relationship between metric use and marketing mix performance is moderated by firm and managerial characteristics. Design/methodology/approach – Based on reviews of the marketing, finance, management and accounting literatures, and homophily, firm resource- and decision-maker-based theories and 22 managerial interviews, a conceptual model is proposed. It is tested via generalized least squares – seemingly unrelated regression estimation of 1,287 managerial decisions. Findings – Results suggest that the impact of metric use on marketing mix performance is lower in firms which are more market oriented, larger and with worse recent business performance and for marketing and higher-level managers, while organizational involvement has a lesser nuanced effect. Research limitations/implications – While much is written on the importance of metric use to improve performance, this work is a first step toward understanding which settings are more difficult than others to accomplish this. Practical implications – Results allow identification of several conditional managerial strategies to improve marketing mix performance based on metric use. Originality/value – This paper contributes to the metric literature, as prior research has generally focused on the development of metrics or the linking of marketing efforts with performance metrics, but paid little attention to understanding the relationship between managerial metric use and performance of the marketing mix decision and has not considered how the relationship is moderated by firm and managerial characteristics.


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