scholarly journals Reinforcing Innovation through Knowledge Management: Mediating Role of Organizational Learning

10.28945/4427 ◽  
2019 ◽  
Vol 14 ◽  
pp. 235-252 ◽  
Author(s):  
Abed Al-Fatah A. Karasneh

Aim/Purpose: The purpose of this study is to investigate the relationship between knowledge management (KM) and organizational innovation (OI). It also enriches our understanding of the mediating effect of organizational learning (OL) in this relationship. Background: KM’s relationship with OL and OI has been tackled extensively in developed countries’ literature. Nowadays, the challenges of developing countries lie in the process of knowledge application. This study attempts to develop a new managerial knowledgeable tool and present a theoretical model and empirical analysis of the relationship between KM and innovation in Jordan, a developing country. To the knowledge of the author, no attempt has been taken to investigate this relationship in any Jordanian sector. Methodology: The sample of this study consists of 457 managers representing strategic, tactical, and operational levels randomly selected from 56 manufacturing companies in Jordan. A questionnaire-based survey has been developed based on KM, OL and OI literature to collect data. A structural equation modeling (SEM) approach was applied to investigate the proposed research model. Contribution: This study contributes to the literature in different ways. First, it asserts that OL assists in improving OI in manufacturing organization of developing countries. Second, it highlights the substantial benefits of applying KM, OL and OI in manufacturing companies in Jordan. Furthermore, it enhances the relationship between KM and innovativeness’ literature by providing empirical evidence, suggesting that OL is as important as KM to advance organizational innovation. Most importantly, it identifies the problem of a developing economy which is not promoting OL or taking care of it as much as they attended to KM in their organizational practices. Findings: Study findings indicate that the relationship between KM and OI is significantly positive. Results also reveal that the relationship between KM and organizational learning is significantly positive. Empirical results emerging from this study indicate that there is partial mediation to support the relationship between OL and OI. Recommendations for Practitioners: This study suggests that managers ought to recognize that organizational learning is equally important to KM. This entails that OL should be utilized within organizations to achieve organizational innovation. Moreover, managers ought to comprehend their importance and encourage their employees to adopt knowledge from various sources; which, if implemented correctly, will enhance the OL environment. Recommendation for Researchers: The research model can be used or applied in different manufacturing and service sectors across the globe. The findings of the current study can serve as a foundation to perform different studies to understand KM processes and recognize its antecedence. Impact on Society: This study presents insights on how to apply KM, OL and OI methodologies in Jordanian manufacturing companies to achieve a competitive advantage; hence, positively influencing society. Future Research: Future research may include conducting a similar study in the context of developed countries and developing countries which allows for comparison. Also, future research may examine the impact of KM on organizational performance applying both OL and OI as mediating variables.

2020 ◽  
Vol 12 (6) ◽  
pp. 2407 ◽  
Author(s):  
Jaffar Abbas ◽  
Qingyu Zhang ◽  
Iftikhar Hussain ◽  
Sabahat Akram ◽  
Aneeqa Afaq ◽  
...  

This current study is among the very few investigations, which seeks the relationship between knowledge management and sustainable organizational innovation in garment business firms. This investigation focused on examining how organizational learning mediates the relationship between knowledge management and sustainable organizational innovation. This research establishes that knowledge management and organizational innovation procedures are integral parts of the progress and survival of the organizations. The received data of this population reports on the garment firms, operating their businesses in Lahore and Gujranwala. The study applied a stratified random sampling method for data collection and employed structural equation modeling (SEM) to examine the hypothesized relationships. The results specify that knowledge management shows a significant positive association with organizational learning, which in turn reveals a positive linkage to sustainable organizational innovation in SMEs of the garment industry. The study results also specify that organizational learning mediates the relationship between knowledge management and sustainable organizational innovation. This research survey identifies the significance of knowledge management and organizational learning in executing the process of organizational innovation, and it helps business managers to understand organizational learning as a mediator, which in turn indicates the benefits of knowledge management in achieving sustainable organizational innovation. This review provides an empirical indication of original data to investigate the linkage between knowledge management, sustainable innovation process, and organizational learning culture in the Pakistani garment sector. The generalizability of the study fallouts is restricted to the garment industry, and it offers valuable insights for imminent researchers.


10.28945/4887 ◽  
2021 ◽  
Vol 16 ◽  
pp. 459-489
Author(s):  
Fahad Awad Sawaean ◽  
Khairul A. M. Ali ◽  
Ahmad Awad Alenezi

Aim/Purpose: This study aimed to investigate the impact of innovation management and learning orientation as the mechanisms playing the role of an intermediate relationship between entrepreneurial leadership and organisational performance of small and medium enterprises (SMEs) in Kuwait. Background: SMEs are currently among the principal economic instruments in most industrialised and developing countries. The contribution of SMEs can be viewed from various perspectives primarily related to the crucial role they play in developing entrepreneurial activities, employment generation, and improving innovativeness. Developing countries, including Kuwait and other countries, in the Gulf Cooperation Council (GCC), have recognised the key role played by SMEs as a strong pillar of growth. Consequently, many governments have formulated policies and programmes to facilitate the growth and success of SMEs. Unfortunately, the organisational performance of SMEs in developing countries, particularly in Kuwait, remains below expectations. The lagged growth could be due to a lack of good managerial practices and increasing competition that negatively impact their performance. Numerous researchers discovered the positive effect of entrepreneurial leadership on SMEs’ performance. However, a lack of clarity remains regarding the direct impact of entrepreneurial leadership on SMEs’ performance, especially in developing countries. Therefore, the nexus between entrepreneurial leadership and organisational performance is still indecisive and requires further studies. Methodology: This study adopted a quantitative approach based on a cross-sectional survey and descriptive design to gather data within a specific period. The data were collected by distributing a survey questionnaire to Kuwaiti SMEs’ owners and Chief Executive Officers (CEOs) via online and on-hand instruments. A total of 384 useable questionnaires were obtained. Moreover, the partial least square-structural equation modelling (PLS-SEM) analysis was performed to test the hypotheses. Contribution: The current study contributed to the existing literature by developing a moderated mediation model integrating entrepreneurial leadership, innovation management, and learning orientation. The study also investigated their effect on the organisational performance of SMEs. The study findings also bridged the existing significant literature gap regarding the role of these variables on SMEs’ performance in developing countries, particularly in Kuwait, due to the dearth of studies linking these variables in this context. Furthermore, this study empirically confirmed the significant effect of innovation management and learning orientation as intermediate variables in strengthening the relationship between entrepreneurial leadership and organisational performance in the settings of Kuwait SMEs, which has not been verified previously. Findings: The study findings showed the beneficial and significant impact of entrepreneurial leadership and innovation management on SME’s organisational performance. The relationship between entrepreneurial leadership and SMEs’ organisational performance is fundamentally mediated by innovation management and moderated by learning orientation. Recommendations for Practitioners: The present study provides valuable insights and information regarding the factors considered by the government, policymakers, SMEs’ stakeholders, and other authorities in the effort to increase the organisational performance level and facilitate the growth of SMEs in Kuwait. SMEs’ owners or CEOs should improve their awareness and knowledge of the importance of entrepreneurial leadership, innovation management, and learning orientation. These variables will have beneficial effects on the performance and assets to achieve success and sustainability if adopted and managed systematically. This study also recommends that SMEs’ entrepreneurs and top management should facilitate supportive culture by creating and maintaining an organisational climate and structure that encourages learning behaviour and innovation mindset among individuals. The initiative will motivate them towards acquiring, sharing, and utilising knowledge and increasing their ability to manage innovation systemically in all production processes to adapt to new technologies, practices, methods, and different circumstances. Recommendation for Researchers: The study findings highlighted the mediating effect of innovation management on the relationship between entrepreneurial leadership (the independent variable) and SMEs’ organisational performance (the dependent variable) and the moderating effect of learning orientation in the same nexus. These relationships were not extensively addressed in SMEs of developing countries and require further validation. Impact on Society: This study aims to influence the management strategies and practices adopted by entrepreneurs and policymakers who work in SMEs in developing countries. The effect will be reflected in the development of their firms and the national economy in general. Future Research: Future research should investigate the conceptual research framework against the backdrop of other developing economies and in other business settings to generalise the results. Future investigation should seek to establish the effect of entrepreneurial leadership style on other mechanisms, such as knowledge management processes, which could function with entrepreneurial leadership to improve SMEs’ performance efficiently. In addition, future studies may include middle and lower-level managers and employees, leading to more positive outcomes.


2019 ◽  
Vol 12 (2) ◽  
pp. 275-297 ◽  
Author(s):  
Haruna Isa Mohammad

Purpose With the materialization of literature on strategic change, it is clear that organizational learning and organizational dynamism have been among the most notable areas of study. The purpose of this paper is to extend the literature on strategic management by examining the mediating effects of organizational learning and the moderating role of environmental dynamism on the relationship between strategic change and firm performance. Design/methodology/approach A survey questionnaire was administered to 650 respondents who were both corporate and business-level managers of 22 main deposit money banks (commercial banks) and their branches across the country. In total, 630 questionnaires were returned and 587 were used after following all the processes of data preparation. Path analysis was employed to test the hypotheses in this study using Smart PLS 3. Findings The study found a significant mediating effect of organizational learning on the relationship between strategic change and firm performance. Although no significant moderating role of environmental dynamism was found, the directions of the path coefficients are consistent with the hypothesis. All the relationships between the constructs are significant. Research limitations/implications It is paramount for managers to understand the type of environment and learning that fits diverse kinds of strategic changes in order to improve firm performance. It is evident that changes that are not proactive and generative organizational learning may seem dangerous for a firm. However, organizations should learn to incorporate the change to be able to compete in a dynamic competitive environment. Originality/value Prior studies on strategic change, environmental dynamism and organizational learning have mainly focused on manufacturing and construction industries in the developed countries, but less has been done in the service sector, particularly the banking organizations in developing countries. Nigeria is one of those countries. Therefore, this study focuses on the links between strategic change and firm performance, moderating role of environmental dynamism and the mediating effect of organizational learning within the context of the Nigerian deposit money banks.


2018 ◽  
Vol 19 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Kambiz ABDI ◽  
Abbas MARDANI ◽  
Aslan Amat SENIN ◽  
Laura TUPENAITE ◽  
Jurga NAIMAVICIENE ◽  
...  

The main objective of this study was to examine the direct and indirect effects of organizational culture, knowledge management and organizational learning on innovation. The study combined knowledge-based view theory (KBV), competitive value framework to develop a new original theoretical framework for investigation of factors that affect innovation. Data was gathered from a survey of 279 companies supplying automobile parts to Iran Khodro Company, an Iranian leading automobile manufacturer. Study discovered that organizational culture and knowledge management influenced organizational innovation. Besides that, organizational learning played a significant role as a mediator in that relationship. However, knowledge management was not considered as a mediator in the relationship between organizational culture and organizational innovation. As a practical contribution, the findings of the study serve as a guideline for policy makers and managers in the formulation of policies and strategies for sustainable innovation. Knowing the effectiveness of the innovation can help the government to make decisions about the continuation of this policy. Moreover, study contributes to firm management in formulation of policies and strategies for sustainability in innovation context. Innovation assists organizations supplying the product or service in the automotive sector to operate innovatively, competitively and profitably.


2018 ◽  
Vol 11 (1) ◽  
pp. 97-114 ◽  
Author(s):  
Laurent Tournois

Purpose Cities from developing countries strive to compete on a global scale and hence try to attract and retain their residents in offering higher liveability. The purpose of this study is to examine the extent to which liveability influences resident’s sense of place and determines residents’ behavioural intentions. Design/methodology/approach A survey was carried out to test the hypotheses using a sample of 362 residents from the city of Dubai (United Arab Emirates). Structural equation modelling and the method suggested by Hayes and Preacher (2010) for mediation analysis were used. Findings Findings show that residents’ preferences for different types of liveability attributes (included in seven dimensions) influence their sense of place that in return shapes their behavioural intentions towards their place of residence. Results also reveal the importance of non-economic attributes of the urban environment. Moreover, residents’ sense of place mediates the relationship between liveability and residents’ behavioural intentions. Research limitations/implications Future research could more deeply investigate the social functioning of a place and particularly the role of place identity, as it is recognized to affect residents’ attitudes and behaviours. In addition, further developments may contribute to the ongoing debate on the relationship between liveability and growth. Practical implications From a public policy standpoint, this study suggests that local authorities need to identify a distinct set of economic and non-economic characteristics that will encourage residents to stay longer in the place they live. As such, enhancing liveability represents a critical strategic initiative for cities from developing countries to make them a great place to live. Originality/value Compared to developed countries’ cities, few attempts have been made to investigate the attitudes of residents towards a place and the role of liveability in the context of emerging countries fast-growing urban areas. In addition, findings revealed the importance of place-based meanings, i.e. sense of place, which played a pivotal role in the development of place-protective behaviours.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Heidi Aly

Purpose The entire world is now witnessing the Fourth Industrial Revolution and Artificial Intelligence (AI) is indeed altering the lives of the many in both developing and developed countries. Massive digital transformations are affecting the economies of those countries and are bringing with them many promised merits, as well as many challenges to face. This paper aims to examine the relationship between digital transformation (as a one facet of the fourth revolution and AI trends) on one side, and economic development, labor productivity and employment on the other side. Design/methodology/approach The paper analyzes different indices of digital transformation, and then uses the Digital Evolution Index (DEI) to study those relationships in a group of developing countries using feasible generalized least squares method (FGLS). Findings The results show a positive relationship between the digital transformation index and economic development, labor productivity and job employment. Females seem to gain more from digital transformation compared to males, as suggested by the positive relation with the first and the insignificant relation with the latter. The relationship with vulnerable employment is not significant; more evidence is still needed to judge whether digital transformation will have an impact upon the vulnerable employees in the economy. Research limitations/implications The paper focused on the impact of digital transformation upon total aggregate employment. Future research is still needed to examine the impact upon the structure of the labor market and the shift of occupations. Originality/value The paper aims to add to in the literature regarding the relationship between digital transformation, economic development, employment and productivity in the developing world. The implications of those relationships are of significant importance to policymakers regarding how much support should be given to encourage the digital transformation. At the same time, it shall also indicate how much social support policies are required – if any – to lessen the negative impact of digital transformation on the vulnerable groups inside the country. Another contribution is using a single composite index for digital transformation that is comparable across the chosen set of developing countries, instead of using single indices each capturing a different dimension of digital transformation.


2021 ◽  
Vol 13 (19) ◽  
pp. 10802
Author(s):  
Ki Baek Jung ◽  
S.M. Ebrahim Ullah ◽  
Suk Bong Choi

Previous studies have shown that enhancing employees’ innovative behavior can facilitate organizations’ sustainable competitiveness. This study investigated the relationship between authentic leadership and employees’ innovative behavior in Korean manufacturing and service companies. Moreover, the study examined the complex processes and conditions underlying this relationship. The results indicated that authentic leadership was significantly related to employees’ innovative behavior and that leader–member exchange mediated the relationship between authentic leadership and employees’ innovative behavior. Additionally, organizational learning culture moderated the relationship between leader–member exchange and employees’ innovative behavior. Finally, organizational learning culture moderated the mediating effect of authentic leadership on innovative behavior via leader–member exchange. We discuss the theoretical and practical implications of these findings as well as the study’s limitations for future research directions.


2017 ◽  
Vol 13 (1) ◽  
pp. 131
Author(s):  
Esin Akay ◽  
Ayse Gonul Demirel

This study aims to examine the influence of transformational leadership on organizational innovation through the mediating effect of organizational learning and knowledge management in Turkish HR consulting companies. Sample is selected from small, medium size and large HR consulting companies located in Istanbul. Structural equation modeling and bootstrapping is used for data analysis. The research findings indicated that transformational leadership did not directly affect organizational innovation; transformational leadership directly affected organizational learning and knowledge management, and organizational learning directly impacted knowledge management. Besides, knowledge management directly affected organizational innovation, yet organizational learning indirectly influenced organizational innovation. Finally, transformational leadership indirectly influenced organizational innovation through the intervening effect of organizational learning and knowledge management. The results indicated that if managers in Turkish HR consulting companies practice a transformational leadership style by taking into account organizational learning and knowledge management, the chance for successful organizational innovation will highly improve.


2019 ◽  
Vol 10 (1) ◽  
pp. 57-77 ◽  
Author(s):  
Nagwan AlQershi ◽  
Zakaria Bin Abas ◽  
Sany Sanuri Mohd Mokhtar

The purpose of this paper is to fill gaps in the human capital literature, first, by providing insights into the relationship between human capital and strategic innovation and the performance of Small and Medium Enterprises (SMEs), and second, by exploring the role of human capital as a mediating variable. Although SMEs perform a vital role in the economic development of countries worldwide, developing countries tend to lag behind developed countries in this sector; hence, there is a need to investigate the peculiar nature of SMEs and their performance in the context of developing countries. Additionally, understanding an organization’s human capital requires the articulation of a system of variables that helps to uncover and manage the visible wealth. The contribution of SMEs can be measured through performance. This study is a conceptual discussion of manufacturing SME performance in Yemen and the effect of human capital and strategic innovation. The performance is considered to be very low, and the country is ranked by the Global Innovation Index as one of the lowest in terms of innovation. This paper describes the development of a framework which is a clear manifestation of the knowledge gap addressed by this study.


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