Knowledge management processes, innovation capability and organizational performance

Abstract

PurposeThe purpose of this study is to introduce a unified framework which integrates knowledge management processes (knowledge creation, sharing, storage and documentation and acquisition), innovation capability (product, process, marketing and organizational and organizational performance (operational, financial and product quality). Then empirically test the effect of knowledge management processes (KMP) on innovation capability (IC), the effect of IC on organizational performance (OP) and the impact of KMP on OP through the mediator (IC).Design/methodology/approachA questionnaire was designed and addressed to the general managers of the Jordanian companies making up the target population. Statistical techniques employed included confirmatory factor analysis and structural equation modeling (SEM) using AMOS 24 to test the hypotheses.FindingsThe results show that KMP influences IC, IC affects OP and KMP impacts OP through the mediator (IC).Research limitations/implicationsThe use of longitudinal data and comparisons with this study would provide further insights that would assist in generalizing knowledge related to the relationships among KMP, IC and Os' P.Practical implicationsIf organizations fully comprehend KMP and IC, they would be able to implement them successfully, creating value for their companies and improving OP.Originality/valueThe existing research on KMP and IC is primarily conceptual and descriptive in nature, and empirical research confirming the real impact of KMP when developing IC is lacking. Also. the relationship between innovation capabilities and OP has not been adequately studied. Hence, this study introduces a conceptual framework which integrates KMP, IC and OP and simultaneously empirically tests the relationships among them.

Impact of process quality management on firm's operational performance: a mediation analysis of firm's absorptive capacity

“…This reflects that until the flaws in the firm's processes are removed, the quality knowledge gathered through internal collaboration and external partnership will not be of much value. This argument is further reinforced by the results of a research study conducted in the context of the Jordanian business by Migdadi (2020), which suggested that if KM and IC were clearly comprehended by the organization, then they would be able to effectively execute their strategic goals, establish values for their company in the competitive marketplace and enhance OP. Finally, an organizational orientation toward strategically aligned quality and innovation practices will contribute to the creation of more aggressive strategies, the distribution of resources in functional areas where they can generate more value, an encouraging strong culture, organizational proactivity and efficient risk identification and risk-taking capabilities (Sahoo, 2019;Ferreira et al, 2020).…”

“…OL begins by focusing on quality circle teams and problem-solving groups that need to be more insightful in a specific context and the degree to which insight is gained depends on individual learning and team compatibility (Arthur and Huntley, 2005;Battor and Battour, 2013). Whereas KM begins by concentrating on knowledge itself and is a conscious process of identifying, structuring, preserving and exchanging the knowledge and expertise of employees within the organization, with the main objective of enhancing the productivity of the organization and protecting knowledge from external competitors competing in the same business domain (Abbas, 2020;Migdadi, 2020). Therefore, knowledge is an immaterial and irreplaceable asset and is used by organizations that use it effectively as a strategic instrument to compete (Shujahat et al, 2019).…”

“…Organizations that structure their operational processes on the concepts of KM demonstrate superior performance, effectiveness and quality of service (Abbas, 2020;Migdadi, 2020). Efficient management of knowledge-based resources will boost the organizational learning abilities and expertise to drive innovation, seize the market opportunity and respond better to the competitive market leading to improved OP (Migdadi, 2020).…”

“…Organizations that structure their operational processes on the concepts of KM demonstrate superior performance, effectiveness and quality of service (Abbas, 2020;Migdadi, 2020). Efficient management of knowledge-based resources will boost the organizational learning abilities and expertise to drive innovation, seize the market opportunity and respond better to the competitive market leading to improved OP (Migdadi, 2020). In order to achieve OP objectives, KM activities allow manufacturing organizations to address questions such as "what to do, where to do and how to do" (Obeidat et al, 2016;Honarpour et al, 2017;Abbas, 2020).…”

“…Factors that improve the OP of the business have therefore become the subject of research in the operations management (OM) literature (Dubey et al, 2018;Sahoo, 2019). Many OM scholars have realized in recent times that organizations, which learn constantly, have the next source of competitive advantage, since learning is considered to be the gateway to organizational success (Akg€ un et al, 2014;Migdadi, 2020). In this regard, researchers recognized the crucial role of the absorptive capacity (AC) of the organization to create value within the business and are seen as a key strategic resource to the ability of an organization to innovate and compete (Albort-Morant et al, 2018;Khan et al, 2019) AC is characterized as a firm's ability to understand, assimilate or apply the importance of new external knowledge for commercial purposes (Xie et al, 2018).…”