When do entrepreneurial firms benefit from transactive memory systems?

Abstract

Purpose Despite the recognized importance of transactive memory systems (TMS) for firm performance, this relationship remains misconstrued for entrepreneurial firms. Some researchers argue that entrepreneurial firms benefit from effective knowledge management systems, whereas others contend that such systems may prove expensive for resource-scarce entrepreneurial firms. Accordingly, the purpose of this paper is to explore this relationship in the context of Indian entrepreneurial firms. Furthermore, the authors argue that relationship conflict among organizational members impacts the TMS–performance link for entrepreneurial firms. Design/methodology/approach Data were collected from 127 entrepreneurial hotels in the Uttarakhand state of India and analyzed using multiple linear regression. Findings The findings of this study establish a positive relationship between TMS and firm performance for entrepreneurial firms. Also, it is found that TMS becomes more nuanced and beneficial in the presence of relationship conflict between organizational sub-units and is a unique finding that can be potentially helpful to entrepreneurs bestowed with the task of knowledge management in their organizations. Practical implications This study offers at least two insights to entrepreneurs. First, establishing TMS – i.e. managing knowledge in such a way that specialization units are created, credibility is established among the knowledge units, and there is scope for sufficient communication – leads to enhanced performance in entrepreneurial organizations. Second, as the level of relationship conflict within the entrepreneurial firm increases, it becomes all the more crucial to emphasize TMS. Originality/value Although researchers in the literature of knowledge management have emphasized a lot on its performance outcomes, relatively little research effort has been placed on understanding this link for entrepreneurial firms. The current study filled this void in the literature and offered crucial implications for entrepreneurial firms operating in dynamic environments such as hotels. Additionally, the data collected from a relatively unexplored context of Indian hospitality industry offer a valuable addition to the entrepreneurship literature.

Entrepreneurial growth intention and capability approach in agriculture: lesson from Sri Lanka

“…Grande (2011) proposes that the dynamic capabilities of firms include the ability to sense market opportunity, ability to integrate knowledge, ability to build networks and market orientation. Considering the state of the art of CA, the studies (Batra and Dey, 2019;Derissen et al, 2011) are further conceptualised into different pillars of capabilities such as adaptability to organisational learning, knowledge management, communication, sharing and exchanging knowledge and technological capabilities. As Wilson and Martin (2015) stated, the linking of entrepreneurship and CA is not an uncontentious task.…”

“…Knowledge is viewed as one of the organisational dimensions that influence the organisation's propensity to value creation and contribute to successful innovation (Baker and Sinkula, 2002). New knowledge needs to be developed for the activities of creating, extending and modifying the routines and resources of firms in response to changing market conditions (Amarakoon et al, 2016;Batra and Dey, 2019). As said so, knowledge source is the extent to which a firm prefers to develop new knowledge internally versus the extent to which it is more likely to seek inspiration in ideas developed externally (Dibella et al, 1996).…”

“…Formal and informal communication, sharing and effort need to be invested to develop such relationships and foster information sharing. Knowledge embedded in the interactions of people, tools and tasks provides a basis for competitive advantage in firms (Batra and Dey, 2019). All of these imply the requirement of providing training sessions with regards to teambuilding approaches, coordination skills and negotiation skills.…”

Creativity, innovation and entrepreneurship (CIE) in South Asia

“…The research model was tested using data obtained from small firms in the Indian automotive ancillary sector in the state of Punjab. Batra and Dey (2019) examine the relationship between Transactive Memory Systems (TMS) and firm performance in small-and medium-sized firms in the Indian hospitality sector. Previous research defines TMS as "a collective system for encoding, storing, and retrieving information" (Bachrach et al, 2019, p. 464).…”

“…Several studies have found that TMS explains team performance in laboratory conditions (Lewis, 2003), but research in organizational teams under real-world conditions remains low, and almost nothing has been done in this regard outside of western, educated, industrialized, rich and developed nations. Batra and Dey (2019) help fill this gap by examining the TMS-performance link in small-and medium-sized hotels in the Indian state of Uttarakhand.…”