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Knowledge management capabilities and organizational agility as liaisons of business performance

Knowledge management capabilities and organizational agility as liaisons of business performance The 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png South Asian Journal of Business Studies Emerald Publishing

Knowledge management capabilities and organizational agility as liaisons of business performance

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2398-628X
DOI
10.1108/sajbs-05-2020-0145
Publisher site
See Article on Publisher Site

Abstract

The 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.

Journal

South Asian Journal of Business StudiesEmerald Publishing

Published: Sep 27, 2022

Keywords: Knowledge infrastructure capability; Knowledge processing capability; Organizational agility; Business performance

References