The Effect of Infrastructure Capabilities of Knowledge Management and Business Strategy on Organizational Performance through the Mediating Variable of Knowledge Management Process Capabilities

Document Type : Original Research Paper

Authors

1 Associate Prof at the Department of Business Management, Faculty of Economics, Management and Administrative Sciences, Semnan University , Semnan. Iran.

2 PhD candidate at the Department of Industrial Management, Faculty of Economics, Management and Administrative Sciences, Semnan University, Semnan. Iran.

Abstract

Nowadays, organizational knowledge management is considered as an essential strategy for complex, dynamic and uncertain environments, which leads to survival, competitive advantages and improvement of organizational performance.  Furthermore, choosing a business strategy tailored to the organization's requirements is a key challenge for managers for the achievement of the desired status among competitors. This research is untended to find out the effect of knowledge management infrastructure capabilities and business strategy on organizational performance mediated by knowledge management process capability. This developmental applied research follows a descriptive survey method for data collection. The statistical population of the study includes 320 managers of Abbasabad industrial district from whom 175 persons were selected as the sample. A questionnaire was used as the tool for data gathering whose validity was confirmed by the experts, and whose reliability was testified by computing Cronbach's alpha. Confirmatory factor analysis was used to identify the key factors of each component, and structural equation modeling and LISREL software were used to affirm the fitness of the research model. Findings of the research indicated that the infrastructure capabilities of knowledge management and business strategy affect the process capabilities positively and significantly. Furthermore, process capabilities affect the performance of the organization positively and significantly. Moreover, differentiation strategy and human resources impose the most important effects on the process capabilities of knowledge management, and knowledge creation and storage affect the performance of the organization deeply.

Keywords

References

Abubakar, A. M., Elrehail, H., Alatailat, M. A., & Elçi, A. (2017). Knowledge management, decision-making style and organizational performance. Journal of Innovation & Knowledge, 25(3), 45–58.
Amaratunga, D., & Baldry, D. (2002). Moving from performance measurement to performance management. Facilities, 20(5/6), 217–223.
Alaarj, S., Abidin-Mohamed, Z., & Bustamam, U. S. B. A. (2016). Mediating role of trust on the effects of knowledge management capabilities on organizational performance. Procedia-Social and Behavioral Sciences, 235, 729-738.
Aydiner, A. S., Tatoglu, E., Bayraktar, E., Zaim, S., & Delen, D. (2019). Business analytics and firm performance: The mediating role of business process performance. Journal of Business Research, 96, 228–237.
Bastian, E., & Muchlish, M. (2012). Perceived Environment Uncertainty, Business Strategy, Performance Measurement Systems and Organizational Performance. Procedia - Social and Behavioral Sciences, 65, 787–792.
Busi, M., & Bititci, U. S. (2006). Collaborative performance management: present gaps and future research. International Journal of Productivity and Performance Management, 55(1), 7–25.
Carvalho, N., & Gomes, I. (2017). Knowledge sharing between enterprises of the same group. International Journal of Knowledge Management (IJKM), 13(1), 34-52.
Chang, T.-C. and Chuang, S.-H. (2011), “Performance implications of knowledge management processes: examining the roles of infrastructure capability and business strategy”, Expert Systems with Applications, 38(5), 6170-6178.
Davenport, T., Grover, V. (2001). Knowledge Management. Journal of Management Information Systems, 18(1), 3-4.
Dayan, R., Heisig, P., & Matos, F. (2017). Knowledge management as a factor for the formulation and implementation of organization strategy. Journal of Knowledge Management, 21(2), 308–329.
Dorasamy, M., Raman, M., & Kaliannan, M. (2013). Knowledge management systems in support of disasters management: A two-decade review. Technological Forecasting and Social Change, 80(9), 1834-1853.
Fan, Z.-Ping., Feng, B., Sun, Y.-H., & Ou, W. (2009). Evaluating knowledge management capability of organizations: a fuzzy linguistic method. Expert Systems with Applications, 36(2), 3346–3354.
Gold, A. H., Malhotra, A., and Segars, A. H. (2001), Knowledge management: An organizational capabilities perspective, Journal of Management Information Systems, 18(1), 185-214.
Jami Pour, M., & Asarian, M. (2018). Strategic orientations, knowledge management (KM) and business performance. Kybernetes. 1, 1-26.
Khan, M. H. (2018). Knowledge, skills and organizational capabilities for structural transformation. Structural Change and Economic Dynamics, 48, 42-52.
Latifa., Oufkir,, Mounia., Fredj., Ismail., Kassou., (2017). Performance Measurement for Knowledge Management: Designing a Reference Model, Journal of Organizational Knowledge Management, 2017(2017), 125-138.
Heisig, P. (2009). Harmonization of knowledge management – comparing 160 KM frameworks around the globe. Journal of Knowledge Management, 13(4), 4–31.
Jason, F. & Olsen, K. (2015). Knowledge management capabilities and firm performance: A test of universalistic, contingency and complementarity perspectives, Expert Systems with Applications, 42(3), 1178-1188.
Kongpichayanound, P., (2009). Knowledge management for sustained competitive advantage in mergers and acquisitions. Advances in developing human resources, 11, 375-387.
Lee, Heeseok., Choi, Byounggu., (2003). Knowledge Management Enablers, Processes, and Organizational Performance: An Integrative View and Empirical Examination. Journal of Management Information Systems, 20(1), 179–228.
Lin, Y. T., Yang Y. H., Kang, J. S., Yu, H. C. (2011). Using DEMATEL method to explore the core competences and causal effect of the IC design service company: An empirical case study. Expert Systems with Applications, 38(5), 6262–6268.
Li, Y., & Tan, C.-H. (2013). Matching business strategy and CIO characteristics: The impact on organizational performance. Journal of Business Research, 66(2), 248–259.
Martinez-Martinez, A., Cegarra-Navarro, J.-G., Garcia-Perez, A., & Wensley, A. (2019). Knowledge agents as drivers of environmental sustainability and business performance in the hospitality sector. Tourism Management, 70, 381–389.
Millar, P., & Stevens, J. (2012). Management training and national sport organization managers: Examining the impact of training on individual and organizational performances. Sport Management Review, 15(3), 288–303.
Monavvarian, A., & Khamda, Z. (2010). Towards successful knowledge management: people development approach. Business Strategy Series, 11(1), 20–42.
Muthuveloo, R., Shanmugam, N., & Teoh, A. P. (2017). The impact of tacit knowledge management on organizational performance: Evidence from Malaysia. Asia Pacific Management Review, 22(4), 192–201.
Oyemomi, O., Liu, S., Neaga, I., & Alkhuraiji, A. (2016). How knowledge sharing and business process contribute to organizational performance: Using the fsQCA approach. Journal of Business Research, 69(11), 5222–5227.
Oyemomi, O., Liu, S., Neaga, I., Chen, H., & Nakpodia, F. (2018). How cultural impact on knowledge sharing contributes to organizational performance: Using the fsQCA approach. Journal of Business Research, 3(2), 1-7.
Pao.-H, Fu, Lo, F.-Y., &. (2016). The interaction of chief executive officer and top management team on organization performance. Journal of Business Research, 69(6), 2182–2186.
Rus, C. L; Ranas, G., & Baban, A. (2012). An analysis of environmental changes, resources and performance: an internal police organization perspective. Procedia-Social and Behavioral, 33, 727-731.
Salavou, H. E., & Halikias, J. (2009). Strategy types of exporting firms: a view on the basis of competitive advantage. European Business Review, 21(2), 144–158.
Sanford, r. (2009). The impact of Activity-Based costing on organizational performance. Doctoral thesis, Nova Southeastern University, 50-61.
Sheng, M. L. (2019). Foreign tacit knowledge and a capabilities perspective on MNEs’ product innovativeness: Examining source-recipient knowledge absorption platforms. International Journal of Information Management, 44, 154–163.
Shih, W. L., & Tsai, C. Y. (2016). The effects of knowledge management capabilities on perceived school effectiveness in career and technical education. Journal of Knowledge Management, 20(6), 1373-1392.
Tansey, P., Spillane, J., Meng, X., (2014). Linking response strategies adopted by construction firms during the 2007 economic recession to Porter’s generic strategies. Constr. Manage. Econ. 32, 705–724.
Tseng, S. M. (2016). Knowledge management capability, customer relationship management, and service quality. Journal of enterprise information management, 29(2), 202-221.
Tin-Chang Chang, Shu-Hui Chuang (2011). Performance implications of knowledge management processes: Examining the roles of infrastructure. Expert Systems with Applications, 38(2011) 6170–6178.
Turban, E., Sharda, R., & Delen, D. (2011). Decision support & business intelligence systems. USA, Prentice Hall Press.
Yang, J. (2010). The knowledge management strategy and its effect on firm performance: A contingency analysis. International Journal of Production Economics, 125(2), 215–223.
Zhang, Y., Liu, S., Tan, J., Jiang, G., & Zhu, Q. (2018). Effects of risks on the performance of business process outsourcing projects: The moderating roles of knowledge management capabilities. International Journal of Project Management, 36(4), 627–639.
Zott, C. and Amit, R. (2008), “The fit between product market strategy and business model: implications for firm performance”, Strategic Management Journal, 29(1), 1-26.

Files

History

  • Receive Date: 26 June 2019
  • Revise Date: 31 August 2019
  • Accept Date: 11 September 2019

Share

How to cite

Statistics