The Impact of Top Managers’ Knowledge Value on Knowledge Sharing Practices on Open Innovation and Organizational Performance

Document Type : Original Research Paper

Authors

1 Assistant Professor of Management, International University of Imam Reza, Mashhad, Iran

2 Master of Business Administration, Imam Reza International University, Mashhad, Iran

3 Assistant Professor of Management, Attar Institute of Higher Education, Mashhad, Iran

Abstract

Innovation is considered as a vital factor for companies in order to create value and maintain a competitive advantage in today's highly complex and dynamic environment. Innovations is strongly dependent on  knowledge, expertise, and commitment of employees and the value of senior management knowledge as key inputs in the value creation process. Knowledge is recognized as an important source of competitive advantage and value creation to improve performance, as an essential element for sustainable development. Therefore, the purpose of this study was to investigate the effect of the value of top management knowledge and knowledge sharing methods on innovation and organizational performance. This research is applicable purposively and descriptively in nature. The statistical population of the existing research is the managers of technology or knowledge-based companies located in the growth center of Ferdowsi University of Mashhad. From this statistical population, 110 samples have been considered by available sampling method. The data collection tool was Singh et al.'s (2019) questionnaire. It has been used to measure face validity from the point of view of experts and convergent and divergent validity and factor loadings. Cronbach's alpha and composite reliability were used to measure reliability. The total Cronbach's alpha value was estimated to be 0.916, which is in the acceptable range. Data analysis was performed using structural equation modeling method and Smart PLS 3 software. The results showed that the value of top management knowledge had a positive and significant effect on knowledge sharing methods with a path coefficient of 0.623, and a T-statistic of 10.04. Knowledge sharing methods had a positive and significant effect on open innovation of input and output with path coefficients of 0.461, 0.538 and T-statistics 4.806, 7.27, respectively. Input-open innovation had a positive and significant effect on the performance of the organization with a path coefficient of 0.381, and T-statistic of 3.706, but open-innovation innovation did not have a significant effect on the performance of the organization with a path-factor of 0.186, and T-statistic of 1.342. The value of top managers’ knowledge with the mediating role of knowledge sharing methods with path coefficients of 0.287, 0.335 and T-statistic of 4.003, 5.029 has a significant effect on open input and output innovation. Knowledge sharing methods with the role of mediator of open input innovation had a significant effect on the performance of the organization with a path coefficient of 0.176, and T-statistic of 2.707, but methods of knowledge sharing with the mediator role of open innovation output on the performance of the organization with a path coefficient of 0.1, and T-statistic of 2227/1 had no significant effect. Therefore, it is concluded that the value of knowledge of top managers affects the ways of knowledge sharing and open innovation and organizational performance in knowledge-based companies.

Keywords

References

Ahn, J.M., Ju, Y., Moon, T.H., Minshall, T., Probert, D., Sohn, S.Y. & Mortara, L. (2017). Beyond absorptive capacity in open innovation process: the relationships between openness, capacities and firmperformance. Technology Analysis & Strategic Management, 28(9), 1009-1028.
Akram, M.U., Chauhan, C., Ghosh, K. & Singh, A. (2019). Knowledge management, sustainable business performance and empowering leadership: a firm-level approach. International Journal of Knowledge Management, 15(2), 20-35.
Anjaria, K. (2020). Negation and end entropy: Effectual knowledge management equipment for learning organizations. Expert systems with Applications, (157).
Abdelwhab Ali, A., Panneer selvam, D., Paris, L. & Gunasekaran, A. (2019). Key factors influencing knowledge sharing practices and its relationship with organizational performance within the oil and gas industry. Knowledge Management, 23(2).
Ahmad, F., & Karim, M. (2019). Impacts of knowledge sharing: a review and directions for future research. Workplace Learning, 31(3).
Asbari, M., Purwanto, A., Fayzhall, M., Winanti, Purnamasari, D., and Firdaus, R. A. (2020). Hard Skills or Soft skills: which are more important for indonesion markets innovation. Test Engineering and management, 83(2836), 2836-2854.
Asgarnezhad Nouri, B., Sanayei, S., Kazemi, A. (2014). Meta-Analaysis of mediating Role of Sample Attributes in Relationship between Marketing Activities and organizational performance. Management Research in Iran scientific Research Quorterly, 8(1), 151-169.
Bavik, Y. L., Tang, P. M., Shao, R., & Lam, L. W. (2018). Ethical leadership and employee knowledge sharing: Exploring dual-mediation paths. The Leadership Quarterly, 29(2), 322–332.
Brunswicker, S., & Chesbrough, H. (2018). The adoption of open innovation in large firms: practices, measures, and risks A survey of large firms examines how firms approach open innovation strategically and manage knowledge flows at the project level. Research-Technology Management, 61(1), 35–45.
Ben Arfi, W., Enström, R., Michel Sahut, J., & Hikkerova, L. (2019). The significance of knowledge sharing platforms for open innovation success: A tale of two companies in the dairy industry. Organizational Change Management, 32(5), 496-516.
Caputo, M., Lamberti, E., Cammarano, A., & Michelino, F. (2016). Exploring the impact of open innovation on firm performances. Management Decision, 54(7).
Camisón, C., & Villar-López, A. (2015). Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of Business Research, 67, 2891-2902.
Chuang, C.H., Jackson, S.E. & Jiang, Y. (2016). Can knowledge-intensive teamwork be managed? Examining the roles of HRM systems, leadership, and tacit knowledge. Journal of Management, 42(2), 524-554.
Demching, B. (2020). A Holistic Conceptual Model of Organizational Knowledge Management Maturity. University of finance and Economics. Ulaanbaatar. Mongolia, DoI: 10. 3419./IKM 20.089.
Donate, M. J., & de Pablo, J. D. S. (2015). The role of knowledge-oriented leadership in knowledge management practices and innovation. Business Research, 68, 360–370.
Donnelly, R. (2019). Aligning knowledge sharing interventions with the promotion of firm success: The need for SHRM to balance tensions and challenges. Business Research, 94, 344–352.
Del Giudice, M., & Della Peruta, M. R. (2016). The impact of IT-based knowledge management systems on internal venturing and innovation: A structural equation modeling approach to corporate performance. Knowledge Management, 20(3), 417–422.
Ghasemi, A., khalijian, S., Daim, T.U., & Mohammadipirar, E. (2021). Knowledge management performance measurement based on World-Class Competitive Advantages to develop strategic-oriented projects: Case of Iranian oil industry. Technology in Socity, (67).
Gürlek. M., & Çemberci. M. (2020). Understanding the relationships among knowledge-oriented leadership, knowledge management capacity, innovation performance and organizational performance: A serial mediation analysis. Kybernetes, 49(11), 2819-2846.
Hadi Ali, M., Malik, S.Z., Hamza, M. A., and fawad Ali, H. (2020). Managers open Innovation and Business performance in SMEs:A Moderated Mediation Model of job Crafting and Gender. Journal open Innovation. Technolmark. Complex, 6(89), 1-15.
Hamed, W.U., Nisar, Q. A., and WU, H.C. (2021). Relationships between external knowledge, internal innovation, firms open innovation performance, service innovation and business performance in the Pakistani, hotel industry. International journal of Hospitality management, 92, 102745.
Huggins, R., Prokop, D., & Thompson, P. (2020). Universities and open innovation: The determinants of network centrality. The Journal of Technology Transfer, 45(3), 718-757.
Iqbal, A. (2021). Innovation speed & quality in higher education institutions: the role of knowledge management enablers & knowledge sharing process. Journal of Knowledge Management, Vol. 25 No. 9, pp. 2334-2360.
Kianto, A., Hussink, H., & Vanhala, M. (2018). The Impact of Knowledge management on the market performance of companies. Knowledge Management in the sharing, 189-207.
Lichtenthaler, U. (2015). Open innovation: Past research, current debates, and future directions. Academy of Management Perspectives, 25(1), 75–93.
Mueller, J., Abecassis-Moedas, C. & Abecassis-Moedas, C. (2018). Factors Influencing the Integration of External Evaluations in the open Innovation Process: A Qualitative Study in Micro-Firms in the Creative Industries. Strategy & Management, 10(2), 248-260.
Muhammed, S., & Zaim, H. (2020). Peer knowledge sharing and organizational performance: the role of leadership support and knowledge management success. Knowledge management, 24(10), 2455-2489.
Naqshbandi, M.M., Jasimudina, S.M. (2018). Knowledge-oriented leadership and open innovation: Role of knowledge management capability in France-based multinationals. International Business Review, 27, 701–713.
Park. S., & Kim, E.J. (2018). Fostering organizational learning through leadership and knowledge sharing. Journal of Knowledge Management 22(6):1408-1423.
Popa, S., Soto-Acosta, P., & Martinez-Conesa, I. (2017). Antecedents, moderators & outcomes of innovation climate & open innovation: An empirical study in SMEs. Technological Forecasting & Social Change, 118, 134–142.
Rehman. U.U., & Iqbal. A. (2020). Nexus of knowledge-oriented leadership, knowledge management, innovation and organizational performance in higher education. Business Process Management Journal, 1463-7154.
Singha, S.K., Guptab, S., Bussoc, D., & Kambojd, S. (2019). Top management knowledge value, knowledge sharing practices, open innovation and organizational performance. Business Research, (2).
Santoro, G., Vrontis, D., Thrassou, A., & Dezi, L. (2018). The Internet of Things: Building a knowledgemanagement systemfor open innovation & knowledge management capacity. Technological Forecasting & Social Change, 1-8.
Ting, I.W.K., Sui, H.J., Kweh, Q.L. & Nawanir, G. (2021). Knowledge management and firm innovative performance with the moderating role of transformational leadership. , Journal of Knowledge Management, Vol. 25 No. 8, pp. 2115-2140.
Veronica, S., Del Giudice, M., Bresciani, S., & Meissner, D. (2018). Knowledge-driven preferences in informal inbound open innovation modes. An explorative view on small to medium enterprises. Knowledge Management, 21(3), 640–655.
Von Krogh, G., Netland, T., & Worter, M. (2018). Winning with open process innovation. MIT Sloan Management Review, 59(2), 53–56.
Wang, T., Wu, J., Gu, J., & Hu, L. (2020). Impact of open innovation on organizational performance in different conflict management styles: based on resource dependence theory. Conflict Management, 1044-4068.
Winarso, W., Hady, H., Panday, R, and unatari, D.T. (2020). Competitive Advantage and Marketing performance on SMEs: Market orientation an innovation of local prouduct in Bekas. Indonasion. Test engineering & management, 1, 1-11.
Yasa, N., Giantari, I., Sentini, M., and Rohmayanti, P. (2020). The Role of competitive advantage in mediating the effect of promotional strategy on marketing performance. Management science Letters, 10(12), 2845-2848.
Zhou, H., Yao, Y. & Chen, H. (2018). How does open innovation affect firms’ innovative performance: The roles of knowledge attributes and partner opportunism. Chinese Management Studies, 12(4), 720-740.‏
Scientific Journal of Strategic Management of Organizational Knowledge
Volume 5, Issue 1 - Serial Number 16
Serial No.16- Spring Quarterly
June 2022
Pages 165-191

Files

History

  • Receive Date: 26 May 2022
  • Revise Date: 11 June 2022
  • Accept Date: 11 July 2022

Share

How to cite

Statistics