Moderating Effects of Knowledge Management Practices in the Relationship Between Corporate Strategies and Organizational Performance
Despite the increasing interest in managing knowledge, there has been limited research on knowledge management practices in the corporate strategy of organizations. Lack of empirical evidence has created a gap between the theory and practice of knowledge management in corporate strategy. In this...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2008
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/6923/1/GSM_2008_4.pdf http://psasir.upm.edu.my/id/eprint/6923/ |
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| Summary: | Despite the increasing interest in managing knowledge, there has been limited
research on knowledge management practices in the corporate strategy of
organizations. Lack of empirical evidence has created a gap between the theory and
practice of knowledge management in corporate strategy. In this study, the
researcher integrated the knowledge-based and the resources-based theories of the
firm to develop a suitable framework and model for knowledge management
research. In addition, this study developed a knowledge management research model
and empirically tested it within the moderation perspective of Miles and Snow's
strategy typology.
In particular, the influence of knowledge management practices as a key moderating
variable, has been neglected in previous Malaysian studies. The theoretical model
used in this study was tested using empirical data from 123 public-listed
organizations in Malaysia. Data from the survey were analyzed using the higherorder
interaction effects of the Moderated Multiple Regressions analysis. Results of
the analysis indicated that corporate strategies and knowledge management practices have a positive impact on organizational performance. The findings
revealed that prospector evaluations were significantly greater than those of defender
evaluations, followed by analyzers and finally, reactors evaluations. Eighteen percent
(18%) and 7% of increases in variance in the objective and subjective measures of
the organization's performance, respectively, were due to the moderating effect of
knowledge management practices. The results obtained were higher than the
increase attributed to corporate strategies. In terms of the subjective measures of
organizational performance, the results suggested that the relationship is stronger in
the market-focused organizations followed by the dual focused and the operation
focused organizations and finally the unfocused organizations. The results showed
that market-focused practices were better moderators of organizational performance.
The results also revealed that among the consumer products, the industrial products
organizations and the services industries in the Main Board of Malaysia have very
different goals for knowledge management practices. This is because the
knowledge management practices' environment created an impact on the
organizations' corporate goals. Factors such as management support and practices,
the level of knowledge investments and the impact of knowledge management
practices' benefited the organizations' strategic and functional needs. The level of
perceived benefits of knowledge management practices is directly related to the
corporate goals of the organizations. This is reflected in the results of this study
which showed that the market focused groups contributed to the highest level of
organizational performance in terms of the subjective measure, followed by the
operation focused groups, the dual focused group and the unfocused group in the
organizations. |
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