scholarly journals Organizational Performance and Sustainability: Exploring the Roles of IT Capabilities and Knowledge Management Capabilities

2018 ◽  
Vol 10 (10) ◽  
pp. 3816 ◽  
Author(s):  
M. Akram ◽  
M. Goraya ◽  
Aneela Malik ◽  
Amer Aljarallah

This study explores the effects of organizational information technology (IT) capability in determining organizational performance and sustainable competitive advantage. Building on the resource-based and knowledge-based views of a firm, the study proposes a theoretical framework. In this framework, organizational IT capability is theorized to strengthen organizational performance and sustainable competitive advantage, directly and indirectly, through organizational knowledge management capabilities. Data collected from the middle and senior managers of diverse organizations in an emerging economy have been used to test the relationships in the framework. To estimate the proposed relationships in the conceptual model, we use structural equation modeling through SmartPLS 3.2. The results confirm that organizational IT capability significantly impacts organizational performance and sustainable competitive advantage. Additionally, organizational knowledge management capabilities partially mediate the relationship between IT capability and the outcomes (i.e., organizational performance and sustainable competitive advantage). The study concludes with a discussion of the implications for academicians and managers.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nosheen Rafi ◽  
Alia Ahmed ◽  
Imran Shafique ◽  
Masood Nawaz Kalyar

PurposeThe aim of this current study is to investigate the effects of knowledge management capabilities – knowledge infrastructure capability and knowledge processing capability – on organizational agility and business performance. This study also examines organizational agility as an underlying mechanism between knowledge management capabilities and business performance relationship.Design/methodology/approachThe data were collected from one hundred and sixty-nine organizations. Partial least squared (PLS)–based structural equation modeling (SEM) technique was employed to test the study hypotheses. The analysis was performed in WarpPLS 6.0 software.FindingsResults revealed that both dimensions of knowledge management capabilities positively influence organizational agility and business performance. In addition to the direct effect, knowledge management capabilities also have an indirect effect on business performance mediated through organizational agility.Research limitations/implicationsThis study attempts to develop an integrated framework to conceptualize a capability–capacity–performance relationship, where it suggests that knowledge management capabilities are important organization-level capabilities which facilitate organizations to develop necessary capacities i.e. organizational agility to successfully perform business activities.Practical implicationsThe findings help the managers to understand the contribution of knowledge management capabilities towards business performance. The findings imply that business performance can be enhanced by development of a culture - enabled by a knowledge-oriented structure and technology – that encourages knowledge sharing among employees because when employees are not sharing information, they are prone to repeating the same mistakes which they and other people have already committed. Likewise, strategies such as mentoring cross training, business process empowerment and technical training programs allow employees to gain business knowledge and foster organizational agility.Originality/valueNovelty of this study is to develop and empirically test an integrated framework of a capability–capacity–performance relationship. It suggests that knowledge management capabilities (firm capability) enable organizations to develop organizational agility (firm capacity) which in turn enhances performance.


2018 ◽  
Vol 4 (2) ◽  
pp. 117 ◽  
Author(s):  
Moh. Wahyudin ◽  
Henry Yuliando

Marketing brings a consequence that producers distribute their products to consumers. There are many kinds of a medium that producers can use to distribute their products, one of which is retailer business. In governance, retailer business can be classified into two types, namely traditional retailer and modern retailer. In the process, there are worries about the existence of traditional retailer as a result of the strengthening of modern retailer. Therefore, it is important to pay special attention to the traditional retailer to grow and evolve along with the growth and development of modern retailer, so that traditional retailer marketing can run optimally. This study aims to formulate the strategy for traditional retailer to keep sustainability concerning to the proper implementation of knowledge management through the developing of socio- entrepreneurship. This research uses SEM (Structural Equation Modeling) to measure the correlation between independent and dependent construct in term of increasing knowledge management of traditional retailer.Based on the result analysis, competitive advantage in traditional retail is affected by the choice of strategies implemented by retailer. However, the implemented strategy is not optimal because it is not supported by the implementation of a good knowledge  managements, especially in terms of accessibility to knowledge and practices required in the retail business. Traditional retail are difficult to gain an access to training and mentoring on strategies and techniques to manage retail business professionally in order to achieve a sustainable competitive advantage. When traditional retail want a more optimal to achieve a competitive advantage, they should improve their ability in implementing the management knowledge systematically, for example, building an association of traditional retail with the main vision to organize a training program or mentoring about strategy and technique management of retail business. Keywords: Traditional retailer, management knowledge, competitive advantage.


2018 ◽  
Vol 26 (2) ◽  
pp. 114
Author(s):  
Agung Sofani ◽  
Miyasto Miyasto ◽  
Indi Djastuti

Changes in the business environment are unavoidable in an industry. To survive in the competitive, businesses must be able to adapt to changes in the external business environment. The ability of businesses to adapt to the changing business environment becomes a key aspect needed to achieve competitive advantage in the long-term (sustainable) perspective. Based on this phenomenon, the study aims to examine the effect of partnership perspective and knowledge management in building the adaptability of the changing business environment and enhance the sustainable competitive advantage.The data regarding the partnership perspective, knowledge management, adaptation to the business environment and sustainable competitive advantage obtained through interviews using questionnaires. The sample was PT Djarum tobacco suppliers partner in Temanggung. Structural Equation Modeling (SEM) was run by AMOS, the software was used to analyze the data obtained.Statistical analysis showed that the partnership perspective, and knowledge management, positive and significant impact on the adaptability of the business environment changes; adaptability of the business environment changes proved to be positively and significantly impact to sustainable competitive advantage. Directly, partnerships and knowledge management perspective also positively and significantly impact to sustainable competitive advantage.


2020 ◽  
Vol 10 (2) ◽  
pp. 240-255
Author(s):  
Lutfi Nurcholis

This paper aims to investigate the effect of IT-strategy alignment, responsiveness, operational flexibility, and business relationship on sustainable competitive advantage and the mediating effect of responsiveness, operational flexibility, and business relationship in relationships between IT-strategy alignment and sustainable competitive advantage. Data were collected from 189 Batik SME in Pekalongan and analyzed by using Structural Equation Modeling (SEM). The result shows that IT-strategy alignment significantly affects responsiveness. Responsiveness, operational flexibility, and also business relationship significantly affect sustainable competitive advantage. Furthermore, responsiveness, operational flexibility, and business relationship mediate the correlation of IT-strategy alignment and sustainable competitive advantage. Responsiveness, operational flexibility, and business relationship have the confidence and value that puts customers on every business decision. It encourages Batik SME to improve the sustainable competitive advantage based on the customers’ expectations. IT-strategy alignment is essential to enhance responsiveness, operational flexibility, and business to gain a sustainable competitive advantage. That IT-strategy alignment can improve the sustainable competitive advantage of the Batik SME.


2020 ◽  
Vol 27 (4) ◽  
pp. 365-378 ◽  
Author(s):  
Mercy Asaa Asiedu ◽  
Hod Anyigba ◽  
Kwame Simpe Ofori ◽  
George Oppong Appiagyei Ampong ◽  
John Agyekum Addae

Purpose The purpose of this paper is to explore the relationship between transformational leadership, knowledge management capabilities, organizational learning and innovation performance in the context of higher education institutions. Design/methodology/approach Using a survey research design, data was collected from 219 respondents comprising faculty and administrative staff from two public and five private universities in Ghana. The data were analysed by using the partial least squares approach to structural equation modelling with the use of Smart PLS software. Findings The results revealed that transformational leadership significantly predicts knowledge management capabilities and organizational learning and also has a positive effect on innovation performance. Originality/value Although some studies have covered the theoretical and empirical analyses of links between transformational leadership, innovation performance and some knowledge management capabilities, this study examines the direct links between transformational leadership and knowledge management capabilities, on one hand, and transformational leadership and organizational learning on the other, as well as their overall effect on innovation performance, which has been less discussed in literature, particularly in the tertiary educational sector and in the Ghanaian context.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Srinivasan P.

Purpose The purpose of this paper is to analyze the impact of knowledge management (KM) in terms of organizational performance using structural equation modeling. To enhance organizational performance, KM is used as a powerful strategic tool. The factors such as management commitment, leadership and organizational culture are the KM enabler’s conditions, and the step processes of KM are knowledge capture, creation, organizing/storing and transfer, and through this, KM is analyzed on organizational performance in the context of leathers manufacturing company. This study constructs with questionnaire consist of 34 variables. Design/methodology/approach There are about 101 samples that were collected through the questionnaire survey method in the leather companies in Ranipet. The data were collected from executives and associates in the leather companies. Data were analyzed using the SPSS tool and SMART PLS tool used for framing a research model and the hypothesized relationships were tested through partial least squares structural equation modeling technique. Findings The finding of this study is mandatory to implement a structured KM practice in the leather companies. Application of KM is quite an impact on organizational performance, which leads to profitability and productivity. Originality/value This is the first paper to empirically investigate the KM enablers, process and support for the role of KM practices at leather industry. Further, the positioning of KM practices as a strategic competitive tool can be considered as an influential factor to organizational performance.


Author(s):  
Rui Bi ◽  
Robert M Davison ◽  
Kosmas X Smyrnios

Information technology (IT) is regarded as a facilitator for both small and large firms to speed up transactions between firms and their suppliers and customers, achieve real-time communication, lower transaction costs, and enhance speed and flexibility. However, understanding whether and how IT helps small-to-medium enterprises (SMEs) to create business value still remains unclear. Drawing upon resource-based view theory, source-positional advantage-performance framework, we develop and test a theoretical model to explore the interrelationships between IT resources (IT expertise, IT infrastructure), IT capability (IT integration), IT-enabled inter-firm partnership processes (activity integration, coordination, partnership enhancement), and organizational performance in the fast growth SME context. We propose that IT business value depends on how firms employ IT resources to develop IT capability which facilitates inter-firm partnership processes along value chains. Structural equation modeling is employed to test our theoretical conceptualization of 310 Australian fast-growth SMEs across different industrial sectors. Results show that IT contributes to fast growth SME performance through the development of IT capability and enhancement of inter-firm partnership activities. This research highlights the role of IT in business value creation and the ways in which IT is used by fast growth SMEs to foster core business competencies.


2019 ◽  
Vol 10 (4) ◽  
pp. 1
Author(s):  
Son Thanh Than ◽  
Cung Huu Nguyen ◽  
Thang Quang Tran ◽  
Phong Ba Le

The purpose of this study is to investigate the influence of knowledge sharing (KS) and two specific types of innovation on competitive advantage in Vietnamese firms. Based on using structural equation modeling (SEM) and survey data collected from 225 participants, the findings reveal that KS directly and indirectly affects firm’s competitive advantage through the mediating role of innovation speed and innovation quality. The findings stress the important role of building a positive climate to stimulate employees for sharing knowledge aimed at improving firm’s innovation capability, and sustaining competitive advantage. Future research needs to explore the relationship between three components of knowledge management namely knowledge acquisition, KS, and knowledge application, innovation, and specific aspects of competitive advantage (such as low cost advantage, differentiation advantage, and time advantage) to provide deeper the mechanism of how specifics aspects of knowledge management connected with firm’s certain types of competitive advantage through innovation.


2020 ◽  
Vol 37 (1) ◽  
pp. 30-37
Author(s):  
Edwin Alexander Henao-García ◽  
Nelson Lozada ◽  
Jose Arias-Pérez

The relationship between knowledge management (KM) and firm performance is an interesting field for both scholars and practitioners. Despite the extant literature, more studies are required in order to clarify the abovementioned relationship. The purpose of this article is to examine the impact of KM practices on financial and nonfinancial performance. KM practices are knowledge creation practices, continuous learning practices (CLP), knowledge and feedback systems (KFS), and management of employees’ individual competencies. Methodologically the study uses partial least squares structural equation modeling. The results show that KFS affect firms’ financial performance and that CLP do not influence oneither financial or nonfinancial performance.


Sign in / Sign up

Export Citation Format

Share Document