The effect of KM capabilities on the Performance of Jordanian Public Listed Companies
DOI:
https://doi.org/10.18533/ijbsr.v7i11.1077Keywords:
Knowledge Management Capabilities, Trust, Top management experience, Resource-based view, Knowledge-based view, Organizational performance, Public listed companiesAbstract
Organizational performance is vital for organizations, countries, and individuals. The performance of Jordanian public listed companies (PLCs) is experiencing a decreasing trend. Existing studies have focused on factors, such as structure, capital, and size; while other factors, such as knowledge management, trust, and experience of top management, have not been adequately investigated. The purpose of this study is to develop a conceptual framework that helps decision makers improve the organizational performance of PLCs. Building on the resource-based view, and knowledge-based view, this study proposes that the knowledge management capabilities (KMC) infrastructure and KMC process could affect the organizational performance of Jordanian PLCs. In addition, the effect of the KMC infrastructure on organizational performance is mediated by the KMC process. Trust and top management experience could moderate the effect of the KMC infrastructure and KMC process on organizational performance. Propositions are developed and discussed as well as future work.
References
Alaarj, S., Zainal, A. M. and Bustamam, U. (2016) ‘Mediating Role of Trust on the Effects of Knowledge Management Capabilities on Organizational Performance’, Procedia - Social and Behavioral Sciences, 235(2016), pp. 729–738.
AmmanStockExchange (2016) Performance of PLC in 2015, Amman Stock Exchange. Available at: http://www.ase.com.jo/ar/أداء-الشركات-المساهمة-العامة-خلال-عام-2015 (Accessed: 20 February 2017).
Aujirapongpan, S. et al. (2010) ‘Indicators of knowledge management capability for KM effectiveness’, Vine, 40(2), pp. 183–203. doi: 10.1108/03055721011050677.
Barney, J. B. (2001) ‘Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view’, Journal of Management, 27(6), pp. 643–650. doi: 10.1016/S0149-2063(01)00115-5.
Calvo-Porral, C. and Lévy-Mangin, J. P. (2016) ‘Food Private Label Brands: the role of consumer Trust on Loyalty and Purchase Intention’, British Food Journal, 118(3), pp. 1–18. doi: 10.1108/BFJ-08-2015-0299.
Chang, T.-C. and Chuang, S.-H. (2011) ‘Performance implications of knowledge management processes: Examining the roles of infrastructure capability and business strategy’, Expert Systems with Applications. Elsevier Ltd, 38(5), pp. 6170–6178. doi: 10.1016/j.eswa.2010.11.053.
Classen, N. et al. (2012) ‘Accessing Resources from Innovation Partners: The Search Breadth of Family SMEs’, Journal of Small Business Management, 50(2), pp. 191–215. doi: 10.1111/j.1540-627X.2012.00350.x.
Cohen, J. F. and Olsen, K. (2015) ‘Knowledge management capabilities and firm performance: A test of universalistic, contingency and complementarity perspectives’, Expert Systems with Applications. Elsevier Ltd, 42(3), pp. 1178–1188. doi: 10.1016/j.eswa.2014.09.002.
Cummings, J. N. (2004) ‘Work Groups, Structural Diversity, and Knowledge Sharing in a Global Organization’, Management Science, 50(3), pp. 352–364. doi: 10.1287/mnsc.1030.0134.
Datta, S. and Iskandar-Datta, M. (2014) ‘Upper-echelon executive human capital and compensation: Generalist vs specialist skills’, Strategic Management Journal, 35(12), pp. 1853–1866. doi: 10.1002/smj.2267.
Delbufalo, E. (2015) ‘Subjective trust and perceived risk influences on exchange performance in supplier-manufacturer relationships’, Scandinavian Journal of Management. Elsevier Ltd, 31(1), pp. 84–101. doi: 10.1016/j.scaman.2014.06.002.
von Den Driesch, T. et al. (2015) ‘How CEO experience, personality, and network affect firms’ dynamic capabilities’, European Management Journal. Elsevier Ltd, 33(4), pp. 245–256. doi: 10.1016/j.emj.2015.01.003.
Donate, M. J. and Sánchez de Pablo, J. D. (2015) ‘The role of knowledge-oriented leadership in knowledge management practices and innovation’, Journal of Business Research. Elsevier Inc., 68(2), pp. 360–370. doi: 10.1016/j.jbusres.2014.06.022.
Drucker, P. f (1999) ‘Knowledge-worker productivity : The biggest challenge’, California Management Review, 41(2), p. 79. doi: 10.1109/EMR.2006.1679053.
Erturk, A. et al. (2015) ‘Retention of IT professionals: Examining the influence of empowerment, social exchange, and trust’, Journal of Business Research. Elsevier Inc., 68(1), pp. 34–46. doi: 10.1016/j.jbusres.2014.05.010.
Fairhurst, J. M. . C. A. E. (2016) ‘Article information ’:, International Journal of Retail & Distribution Management, 44(5), pp. 508–523. doi: http://dx.doi.org/10.1108/09564230910978511.
Forés, B. and Camisón, C. (2015) ‘Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?’, Journal of Business Research. Elsevier Inc. doi: 10.1016/j.jbusres.2015.07.006.
Gharakhani, D. and Mousakhani, M. (2012) ‘Knowledge management capabilities and SMEs’ organizational performance’, Journal of Chinese Entrepreneurship, 4(1), pp. 35–49. doi: 10.1108/17561391211200920.
Gold, A. H., Malhotra, A. and Segars, A. H. (2001) ‘Knowledge management: an organizational capabilities perspective’, J. of Management Information Systems, 18(1), pp. 185–214. doi: 10.2307/40398521.
Grant, R. (2010) Contemporary Strategy Analysis: Text & Cases, International Journal of Management Education. doi: 10.1111/j.1467-9310.2006.00453_1.x.
Hao, S. and Song, M. (2015) ‘Technology-driven strategy and firm performance: Are strategic capabilities missing links?’, Journal of Business Research. Elsevier B.V. doi: 10.1016/j.jbusres.2015.07.043.
Hashim, K. F. and Tan, F. B. (2014) ‘The mediating role of trust and commitment on members’ continuous knowledge sharing intention: A commitment-trust theory perspective’, International Journal of Information Management. Elsevier Ltd, 35(2), pp. 145–151. doi: 10.1016/j.ijinfomgt.2014.11.001.
Hill, N. S. et al. (2009) ‘Organizational context and face-to-face
interaction: Influences on the development of trust and collaborative behaviors in computer-mediated groups’, Organizational Behavior and Human Decision Processes. Elsevier Inc., 108(2), pp. 187–201. doi: 10.1016/j.obhdp.2008.10.002.
Ho, C.-T. (2009) ‘The relationship between knowledge management enablers and performance’, Industrial Management & Data Systems, 109(1), pp. 98–117. doi: 10.1108/02635570910926618.
Holste, J. S. and Fields, D. (2010) ‘Trust and tacit knowledge sharing and use’, Journal of Knowledge Management, 14(1), pp. 128–140. doi: 10.1108/13673271011015615.
Kao, S. C. and Wu, C. H. (2016) ‘The role of creation mode and social networking mode in knowledge creation performance: Mediation effect of creation process’, Information and Management, 53(6), pp. 803–816. doi: 10.1016/j.im.2016.03.002.
Kaplan, R. S. and Norton, D. P. (2007) ‘Using the balanced scorecard as a strategic management system’, Harvard Business Review, 85(7–8), p. 150–161+194. doi: 10.1108/10878570410699825.
Ko, D. (2010) ‘Consultant competence trust doesn’t pay off, but benevolent trust does! Managing knowledge with care’, Journal of Knowledge Management, 14(2), pp. 202–213. doi: 10.1108/13673271011032355.
Kuzu, Ö. H. and Özilhan, D. (2014) ‘The Effect of Employee Relationships and Knowledge Sharing on Employees’ Performance: An Empirical Research on Service Industry’, Procedia - Social and Behavioral Sciences, 109(July 2016), pp. 1370–1374. doi: 10.1016/j.sbspro.2013.12.639.
Lai, Y.-L. and Lin, F.-J. (2012) ‘The Effects of Knowledge Management and Technology Innovation on New Product Development Performance An Empirical Study of Taiwanese Machine Tools Industry’, Procedia - Social and Behavioral Sciences. Elsevier B.V., 40, pp. 157–164. doi: 10.1016/j.sbspro.2012.03.176.
Lin, H.-F. H.-F. (2007) ‘Knowledge sharing and firm innovation capability: an empirical study’, International Journal of Manpower, 28(3/4), pp. 315–332. doi: 10.1108/01437720710755272.
Liu, P. Lo, Chen, W. C. and Tsai, C. H. (2004) ‘An empirical study on the correlation between knowledge management capability and competitiveness in Taiwan’s industries’, Technovation, 24(12), pp. 971–977. doi: 10.1016/S0166-4972(03)00061-0.
Özbağ, G. K., Esen, M. and Esen, D. (2013) ‘The Impact of HRM Capabilities on Innovation Mediated by Knowledge Management Capability’, Procedia - Social and Behavioral Sciences, 99, pp. 784–793. doi: 10.1016/j.sbspro.2013.10.550.
Pandey, S. C. and Dutta, A. (2013) ‘Role of knowledge infrastructure capabilities in knowledge management’, Journal of Knowledge Management, 17(3), pp. 435–453. doi: 10.1108/JKM-11-2012-0365.
Peteraf, M. (1993) ‘The cornerstones of competitive advantage: a resource based view’, Strategic management journal, 14(April 1992), pp. 179–191. doi: 10.1017/CBO9781107415324.004.
Prahalad, C. and Hamel, G. (1990) ‘The Core Competence of the Corporation’, Harvard Business Review, 68(3), p. 79. doi: 10.1007/3-540-30763-X_14.
Rhodes, J. et al. (2008) ‘Factors influencing organizational knowledge transfer: implication for corporate performance’, Journal of Knowledge Management, 12(3), pp. 84–100. doi: 10.1108/13673270810875886.
Richard, P., Devinney, T. and Yip, G. (2009) ‘Measuring organizational performance: Towards methodological best practice’, Journal of.
Romijn, H. and Albaladejo, M. (2002) ‘Determinants of innovation capability in small electronics and software firms in southeast England’, Research Policy, 31(7), pp. 1053–1067. doi: 10.1016/S0048-7333(01)00176-7.
Saatcioglu, O. Y., Ozmen, O. N. T. and Eris, E. D. (2012) ‘A study on knowledge management and firm performance in Turkish IT sector’, International Journal Logistics Systems and Management, 11(2), pp. 213–231.
Shazi, R., Gillespie, N. and Steen, J. (2015) ‘Trust as a predictor of innovation network ties in project teams’, International Journal of Project Management. Elsevier B.V., 33(1), pp. 81–91. doi: 10.1016/j.ijproman.2014.06.001.
Teerajetgul, W. and Chareonngam, C. (2008) ‘Tacit knowledge utilization in Thai construction projects’, Journal of Knowledge Management, 12, pp. 164–174. doi: 10.1108/13673270810852467.
TradingEconomies (2017) Jordan GDP Annual Growth Rate, Tradingeconomies. Available at: http://www.tradingeconomics.com/jordan/gdp-growth-annual (Accessed: 20 February 2017).
Tseng, S.-M. (2014) ‘The impact of knowledge management capabilities and supplier relationship management on corporate performance’, International Journal of Production Economics. Elsevier, 154, pp. 39–47. doi: 10.1016/j.ijpe.2014.04.009.
Tseng, S.-M. and Lee, P.-S. (2014) ‘The effect of knowledge management capability and dynamic capability on organizational performance’, Journal of Enterprise Information Management, 27(2), pp. 158–179. doi: 10.1108/jeim-05-2012-0025.
Turner, K. L. and Makhija, M. V. (2006) ‘The role of organizational controls in managing knowledge’, Academy of Management Review, pp. 197–217.
Utami, A. F., Bangun, Y. R. and Lantu, D. C. (2014) ‘Understanding the Role of Emotional Intelligence and Trust to the Relationship between Organizational Politics and Organizational Commitment’, Procedia - Social and Behavioral Sciences. Elsevier B.V., 115(Iicies 2013), pp. 378–386..
Vasudevan, H. and Chawan, A. (2014) ‘Demystifying Knowledge Management in Indian Manufacturing SMEs’, Procedia Engineering. Elsevier B.V., 97, pp. 1724–1734.
Wang, L. et al. (2014) ‘Consumer trust in tourism and hospitality: A review of the literature’, Journal of Hospitality and Tourism Management. Elsevier Ltd, 21, pp. 1–9.
Wu, I.-L. and Chen, J.-L. (2014) ‘Knowledge management driven firm performance: the roles of business process capabilities and organizational learning’, Journal of Knowledge Management, 18(6), pp. 1141–1164.
Yu, W., Ramanathan, R. and Nath, P. (2014) ‘The impacts of marketing and operations capabilities on financial performance in the UK retail sector: A resource-based perspective’, Industrial Marketing Management. Elsevier Inc., 43(1), pp. 25–31.
Zheng, S., Zhang, W. and Du, J. (2011) ‘Knowledge‐based dynamic capabilities and innovation in networked environments’, Journal of Knowledge Management, 15(6), pp. 1035–1051.
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
