Organizational resources, KM process capability and strategic flexibility: a dynamic resource-capability perspective

Abstract

Purpose Strategic flexibility is largely considered a source of competitive advantage, yet strategic flexibility in relation to organizational resources and knowledge management (KM) process capability is not well studied. To address this gap, this study aims to assesses the relationship of organizational resources (technical and social resources) and strategic flexibility through KM process capability. Design/methodology/approach This paper is built on the assumptions of the resource-based view and the dynamic capability perspective of firm. Two types of organizational resources – technical and social – were identified from relevant literature. Data were collected from 23 small- and medium-sized firms (family owned firms) using a 37-item questionnaire. In addition to descriptive statistics, multiple hierarchical regressions and bootstrapping were used to test the study hypotheses. Findings Findings suggest that organizational resources are positively and significantly related with strategic flexibility, and KM process capability partially mediates these relationships. Research limitations/implications The paper adds to strategic flexibility literature by exploring and assessing the linkage of organizational resources with strategic flexibility through KM process capability. Originality/value Findings of this research may help organizations and practitioners in enhancing strategic flexibility of firm.

Knowledge, Renewal and Flexibility: Exploratory Research in Family Firms

“…The systematic leverage of knowledge and strategic flexibility for continuous strategic renewal requires that the firm has an elaborate and appropriate strategy (Kianto 2011). However, an integrated understanding of how this strategy is managed when increasing strategic renewal goals needs further assessment (Bamel and Bamel 2018), particularly considering that strategic flexibility and knowledge-management practices are conditioned by the characteristics of the organization and its members (Gavana et al 2019;Bojica et al 2017;Segaro et al 2014). In this regard, family businesses are characterized as a special form of company by their "familiness", which affects not only how they do business in general, but also how they deal with knowledge (Döring and Witt 2019) and flexibility.…”

“…For example, "the literature maintains a strong tension between entrepreneurial and innovative family firms and family firms that are reluctant to change and are highly conservative" (Stanley et al 2019, p. 174). Despite the relevance of considering family firms' diversity, a close review of the relevant literature revealed that the studies that explore knowledge management (Döring and Witt 2019;Pérez-Pérez and Hernández-Linares 2020) and strategic flexibility (Bamel and Bamel 2018) as supporting anchors of strategic renewal (Zahra 2012) are still limited in the context of family-owned firms. Studies exploring the above relationships use either a sample of family firms (Bamel and Bamel 2018) or examine the family businesses as a specific category of organizations that differs from other categories of organizations-the nonfamily firms-(Pérez-Pérez and Hernández-Linares 2020; Menendez-Requejo 2005) which wrongfully creates the notion that all businesses within this category show similar characteristics and face similar challenges (Melin and Nordqvist 2007).…”

“…Despite the relevance of considering family firms' diversity, a close review of the relevant literature revealed that the studies that explore knowledge management (Döring and Witt 2019;Pérez-Pérez and Hernández-Linares 2020) and strategic flexibility (Bamel and Bamel 2018) as supporting anchors of strategic renewal (Zahra 2012) are still limited in the context of family-owned firms. Studies exploring the above relationships use either a sample of family firms (Bamel and Bamel 2018) or examine the family businesses as a specific category of organizations that differs from other categories of organizations-the nonfamily firms-(Pérez-Pérez and Hernández-Linares 2020; Menendez-Requejo 2005) which wrongfully creates the notion that all businesses within this category show similar characteristics and face similar challenges (Melin and Nordqvist 2007). This oversimplifies the essence of a family business to such an extent that the mere presence of family becomes a signifier for all firm behaviors, activities, and outcomes (Dekker et al 2013), thus making it difficult to appreciate why some family firms are more or less adaptive to their environment than others.…”

The Role of Knowledge Management Capability and Digital Ecosystem to Enhance Digital Transformation for SMEs

“…The ability mentioned here does not only the ability to manage knowledge and information that is new for the organization such as IT, but also the organization is expected to be able to address the protection system dealing with the knowledge and information. The organization encourages the employees to use the ability as a tool to work more efficiently and innovatively as well (Bamel & Bamel, 2018;Tseng, 2016). In learning new knowledge more effectively, to separate the knowledge as the asset of the organization is needed.…”

“…Previous research has stated that knowledge management capability is fundamentally essential to exploit knowledge resources from outside of the organization (Grandinetti, 2016). Knowledge management capability refers to the ability of an organization that does obtain not only new knowledge and exploit it to become a new knowledge, but also useful to separate and protect the knowledge (Attia & Eldin, 2018;Bamel & Bamel, 2018). Separating the knowledge aims to differ with other knowledge so that the knowledge can be learned by the staff immediately.…”