An Empirical Study on the Relationships of Knowledge Management Orientation, Market Orientation, and Firm Performance

Author(s):  
Peng Du
Author(s):  
Mohd Noor Mohd Shariff ◽  
Khansa Masood ◽  
Halim Mad Lazim

Small and medium enterprises (SMEs) are considered as foundation stones of economic development and growth of any economy (Centobelli, Cerchione, & Esposito, 2019). Performance of SMEs is of fundamental significance for all developed as well as developing nations. Similarly, Pakistan is no exception to aforementioned fact. The economic development and growth of Pakistan depend on the performance of SMEs to a great extent. Like, most countries in the world, SMEs comprise more than 90% of total business entities in Pakistan (Degong et al., 2018; Waqas & Nawaz, 2019) and leather industry in one that is attracted by the researchers of present study. Constraints in the growth of leather industry of Pakistan include, lack of skilled human capital, rising cost of production, lack of modern-day knowledge about new products and processes, low profitability and lack of capability to penetrate into international markets, lack of market research, access to finance, intensive competitive rivalry (Khalique et al., 2011; Daily Times, 2016, Awan et al., 2019). Few studies have revealed mixed findings regarding the relationship between knowledge management and firm performance and there is abundance of literature that demonstrates the presence of significant and positive relationship between Market Orientation and Firm performance (Slater & Narver , 1995; Baker & Sinkula, 2009; Udriyah, Tham, & Azam, 2019). On the other hand, some studies have argued that there is no direct and significant relationship between Market Orientation and Firm Performance (Polat & Mutlu, 2012; Shehu & Mahmood, 2014). Moreover, keeping in view the mixed and inconclusive findings regarding the relationship between cause and effect variables, it is appropriate to introduce moderating variables that can significantly influence the relationship between independent and dependent variables as recommended by Baron and Kenny (1986). Access to Finance and Competitive Environment can be served as prospective moderators which are quite appropriately related to proposed variables of the study (Prajogo & Oke, 2016; Rogo et al., 2016; Jaworski & Kohli, 1993) which are quite appropriately related to selected variables of the study. Thus, the research problem expressed that "Access to finance and competitive environment can potentially moderates and affect the relationship between independent and dependent variables. Hence, based on the past literature and aforementioned discussion, the present study intended to examine the moderating effects of Access to Finance and Competitive Environment on the Relationship between Human Capital, Knowledge Management, Market Orientation and SMEs Performance in Leather Industry of Pakistan". Keywords: Small medium enterprise, performance, access to finance, competitive environment


Author(s):  
Cesar Camison Zornoza ◽  
Daniel Palacios Marques ◽  
Fernando Jose Garrigos Simon

In the resource-based view (RBV) approach, the knowledge border rests on the understanding of the distinctive competences creation and recreation process. Moreover, in spite of the importance of knowledge assets, how knowledge is generated in organizations is still an unknown factor. This research studies the effect of introducing knowledge management programs in the development of knowledge distinctive competences, as well as their capability to create economic rents. In addition, we established a conceptual delimitation of knowledge management as a directive system through a set of principles and practices, which is a theoretical innovation in this research line. The theoretical relationships we propose are tested in an empirical study carried out in 222 firms from the Spanish biotechnology and telecommunication sectors.


2019 ◽  
Vol 18 (04) ◽  
pp. 1950039
Author(s):  
Rayees Farooq ◽  
Sandeep Vij

The objective of the study is to test the relationship between knowledge management orientation (KMO) and business performance (BP). KMO is a higher-order construct consisting of three second-order constructs: learning orientation (LO), knowledge sharing orientation (KSO), and information technology orientation (ITO). The paper explores the mediating role of market orientation (MO) in the relationship between KMO and BP. In this firm-level study, the personal survey was administered to key informants in 400 listed firms (from manufacturing and service sector) from North Indian States and Union Territories [including Punjab, Haryana, Himachal Pradesh, Jammu and Kashmir, Uttaranchal, Uttar Pradesh, Rajasthan, Chandigarh and National Capital Region (NCR)]. Two respondents each from these 400 firms were approached. The study found that KMO positively affects BP. MO does not mediate the relationship between KMO and BP. Rather, KMO fully mediates the relationship between MO and BP. The study provides evidence in support of KMO as a mediator between MO and BP. KMO of the firm provides a dynamic capability for realizing the benefits of a firm’s MO. The study contributes to the knowledge management literature by empirically validating the KMO, MO and BP constructs.


2018 ◽  
Vol 26 (2) ◽  
pp. 138
Author(s):  
Fajar Ismail ◽  
Amie Kusumawardhani ◽  
Sugiono Sugiono

This research is motivated by the number of Sea Transportation Service (JPT) companies operating in the port of Tanjung Emas which lost their revenue for 6 months in a row, resulting in the revocation of their permits. The inability to compete in the form of low operational performance leads to a decrease in financial performance. Some researchers believe that innovation in logistics is the most effective way of increasing competitive advantage and firm performance in the logistics industry.Therefore, this study aims to analyze the relationship between innovation in logistics, operation performance, and financial performance and the factors that influence innovation is strategic action and knowledge management orientation. The data were obtained from a questionnaire filled by 178 Sea Management Services (JPT) companies operating in the Port of Tanjung Emas Semarang. Data were analyzed with Structural Equation Modeling (SEM) using AMOS software.The result of the statistical analysis shows that directly strategic action and innovation in logistics have a positive and significant effect on operational performance. Indirectly knowledge management orientation has a positive and significant effect on operational performance through innovation in logistic.


10.28945/4089 ◽  
2018 ◽  
Vol 13 ◽  
pp. 183-199
Author(s):  
Ananda Sabil Hussein ◽  
Mintarti Rahayu ◽  
Nadiyah Hirfiyana Rosita ◽  
Risca Fitri Ayuni

Aim/Purpose: Two research objectives were addressed in this study. The first objective was to determine the effect of knowledge management orientation behaviour on business performance, and the second objective was to investigate the mediating effect of market orientation in the relationship between knowledge management orientation behaviour and business performance. Background: In business strategic perspective, the idea of knowledge management has been discussed widely. However, there is a lack of study exploring the notion of knowledge management orientation especially in the perspective of Indonesia’s creative economy sector. Methodology: One hundred and thirty one participants were involved in this study. They were economy creative practitioners in Indonesia. Data were analysed by using Partial Least Squares. Contribution: Upon the completion of the research objectives, this study contributes to both theoretical and practical perspectives. From a theoretical standpoint, this study proposes a conceptual model explaining the relationship among knowledge management orientation behaviour, market orientation, and business performance in Indonesia’s creative economy sector. As this study found a significant effect of knowledge sharing in market orientation and market orientation in business performance, the study showed the mediation role of market orientation in the relationship between knowledge sharing and business performance. From a practical perspective, this study implies a guideline for business practitioners in enhancing business through the application of knowledge management orientation behaviour. Findings: The results show that organizing memory, knowledge absorption, and knowledge receptivity has a direct significant effect on business performance. However, in affecting business performance, knowledge sharing must be mediated by market orientation. Recommendations for Practitioners: Based on the results of the study, practitioners should enhance their behaviour in implementing knowledge management in terms of increasing business performance. In addition, it is suggested that business practitioners must be market driven, as market orientation was found to have an important role in affecting business performance. Recommendation for Researchers: Future researchers might integrate other constructs such as innovation, marketing capabilities, or organizational learning with this current conceptual model to have more comprehensive insight about the relationship between knowledge management orientation and business performance. Impact on Society: This study suggests that business practitioners must have knowledge management driven behaviour as well as market orientation to enhance the performance of their business. Future Research: Future research might add other variables to make the conceptual model more comprehensive and also replicate this study into different industrial settings.


Knowledge Management and Market Orientation have become buzzwords today owing to their importance for enhancing organizational performance. Innovation has become the strategic need of organizations at present in order to contend with the extreme market competition. The objective of this research was to examine the impact of knowledge management orientation on a firm’s performance with the mediating role of organizational innovation and market orientation. Data was collected through personal survey-based questionnaire. Based on a survey of 343 employees from Telecom Sector of Pakistan, this study applied Structural Equation Modeling (SEM) Technique to observe the research model. The results of the study demonstrate that knowledge management orientation plays an affirmative role in the promotion of organizational performance. The organizational innovation has significant impact on the performance of the organization. It was also revealed that there is positive effect of market orientation on organizational performance. Moreover, innovation and market orientation were observed to have mediating role in the knowledge management orientation-organizational performance linkage. As, the global phenomenon exposes that if the knowledge management, market orientation and innovation in relation to performance are being practiced, then the results are promising, driving extensively in a constructive way as validated by the literature review. Consequently, this research is one the first attempts in Pakistan towards the perspective i.e. knowledge management orientation, organizational innovation, market orientation in relation to the performance of an organization. It will further contribute towards the local academic and viable arena of Pakistan.


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