scholarly journals Knowledge Management Orientation, Market Orientation, and SME’s Performance: A Lesson from Indonesia’s Creative Economy Sector

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.

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.


Author(s):  
Ananda Sabil Hussein ◽  
Nadiyah Hirfiyana Rosita ◽  
Risca Fitri Ayuni

This study aims to investigate the effect of knowledge management orientation (KMO) behaviour on innovation of SMEs in Indonesia. One hundred and fifty-six SMEs in the creative economy sector participated in this study. Multiple regression was used to analyse the data. The statistical results indicated that knowledge absorption and knowledge receptivity are the KMO's dimensions and have a significant effect on the increase of innovation. This finding contributes to both a theoretical and a practical perspective. For the theoretical perspective, this study showed that knowledge receptivity and knowledge absorption plays an important role in affecting innovation. From a practical standpoint, this study provides insight of SME practitioners in enhancing the innovation through the improvement of KMO behaviour.


2018 ◽  
Vol 10 (2) ◽  
pp. 238-260 ◽  
Author(s):  
Rayees Farooq

Purpose The purpose of the study is to develop a conceptual model of knowledge sharing and how knowledge sharing is linked to business performance. The study proposes basic dimensions of knowledge sharing which seem to be poorly defined in the past literature. Design/methodology/approach The studies were explored from journals which are indexed (Scopus, Thomson Reuters and ProQuest) and specialized in knowledge sharing and business performance. Majority of the papers were available in electronic format, so that papers could be easily explored using the key terms. Various search engines were used to explore the studies such as Google scholar, Emerald insight and ProQuest. Published theses, conference proceedings, working paper series and work in progress were excluded from the search. The review process included the studies from 1987 to 2017. During the review process, papers were explored on the basis of key word search, namely, “Knowledge sharing”, “Business performance” and “Industry type” to reduce interpretation bias. Findings Knowledge sharing is the significant predictor of business performance and industry type moderates the relationship between knowledge sharing and business performance. The relationship between knowledge sharing and business performance is important in both manufacturing and service organizations. Knowledge sharing dimensions proposed are elementary in nature and require further refinement and development. Research limitations/implications The study was approached from a theoretical perspective and the model proposed can be empirically validated by identifying statements for each dimension. Future research should explore the following: As to what extent these dimensions reflect knowledge sharing? Are dimensions chosen carefully? Or do they emerge as a result of previous studies? Practical implications The model can be very helpful for managers and practitioners who want to study how knowledge sharing enhances business performance. Managers will be able to understand how industry-specific differences affect business performance through knowledge sharing. Originality/value Proposed conceptual model advances the theoretical base of knowledge sharing by suggesting dimensions based on comprehensive review of the literature. The study contributes to knowledge management and business performance literature.


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


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.


Webology ◽  
2021 ◽  
Vol 18 (Special Issue 03) ◽  
pp. 261-273
Author(s):  
Dibyendu Pal ◽  
Kumar Shalender

The objective of this theoretical paper is to explore the relationship of market orientation (MO) and organizational performance in the context of Indian textile processing industry. The study also aims to construct a conceptual model which can hypothesize the relationship between market orientation, firm performance, and entrepreneurial orientation (EO). The conceptual model is drawn with the help of extant literature review of studies conducted by various authors in the area of market orientation and entrepreneurial orientation. The study presents a model depicting the inter-relationship among MO, EO and firm performance. The proposed model also propounds that the relationship between market orientation and firm performance is mediated by entrepreneurial orientation. This work will be helpful for different stakeholders of textile processing industry to understand the importance of MO and EO and their impact on the performance of the organization. Also, the proposed conceptual model showing inter-relationship among MO, EO and firm performance is an addition to the existing pool of knowledge.


Author(s):  
Gusti Oka Widana ◽  
Sudarso K Wiryono ◽  
Mustika S Purwanegara ◽  
Mohamad Toha

The positive of impact of market orientation toward business performance of a company is a common wisdom in the marketing literatures. Hence the prior studies recommend that the connection will depend on other strategic actions. In this regards, this study tries to assess the construct of business ethics as the precedent of market orientation in the context of Indonesia Islamic banks. Upon assessing data using SmartPLS, this study finds that market orientation is the determinant of business performance and Islamic business ethics is the precedent of market orientation. However, market orientation is not effective as the mediator in the relationship between Islamic business ethics and business performance. The discussion of this finding is provided as well as the managerial implication at the end of this paper.


2000 ◽  
Vol 31 (2) ◽  
pp. 84-90 ◽  
Author(s):  
S. S. Loubser

Organisations are in constant flux and with powerful universal trends such as globalisation, technological discontinuity, deregulation and new competencies within a continuously changing environment, both business leaders and academics are searching for new insights into organisational dynamics. In recent years more and more academics have suggested that a market orientation should be considered as a business philosophy and/or business behaviour that will lead to better business performance. However, not much research has been done on this organisational phenomenon and it is not well understood. Market orientation has been defined in this study as the business culture that is focused on creating mutually rewarding relationships between customers and the organisation based on a foundation where (I) the interests of all stakeholders are actively pursued: (2) competitive advantage is based on the organisation's ability to learn from the market itself, and to mobilise core competencies in response: (3) a set of beliefs exists that puts the customer's interests first: and (4) processes exist that support this belief. This study differs from previous empirical research on market orientation in that it takes a systemic view of market orientation, rather than a cause-effect view. It considered 449 unlisted and 51 listed organisations, and found that a market orientation leads to better financial results. Also, market orientation is a necessary, but maybe not sufficient, condition for business excellence, and further research needs to be done in this regard.


Sign in / Sign up

Export Citation Format

Share Document