Knowledge management capabilities and organizational agility as liaisons of business performance

Abstract

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.

Knowledge management capabilities and organizational outcomes: contemporary literature and future directions

“…Knowledge management capabilities (KMCs) are described as an organizational system to create, enhance and share knowledge within the work settings (Ferraris et al , 2017; Rafi et al , 2021). Several research studies have highlighted the importance of KMCs to enhance organizational performance, effectiveness and success (Ferraris et al , 2017; Cohen and Olsen, 2015; Hislop et al , 2018; Rafi et al , 2021; Shaqrah and Alzighaibi, 2021). According to Chiu and Chen (2016), KMCs are the combined form of KM infrastructure capability (KMIC) and KM process capability (KMPC).…”

“…Based on the knowledge-based view (KBV), KMCs are the basic building blocks of KM and need to be further investigated in the context of diverse organizational outcomes. Recent literature on KMCs also highlighted the importance of these capabilities to various organizational outcomes (Abualoush et al , 2018; Ali and Anwar, 2021; Hock-Doepgen et al , 2020; Obitade, 2019; Qandah et al , 2020; Rafi et al , 2021; Shaqrah and Alzighaibi, 2021). This paper emphasizes on the inner facets of KMCs and their link to different success parameters, based on the existing literature.…”

Impact of knowledge management capabilities on new product development performance through mediating role of organizational agility and moderating role of business model innovation

“…Rafi et al ( 2021 ) defined KM as the availability and formation of expertise, information, and competencies that shape new capabilities, result in better performance, motivate innovation, and generate higher value for customers. Visionary managers always consider and focus on the need of developing and utilizing knowledge for the prosperity of the organization (Haddad and Ribière, 2007 ).…”

“…Furthermore, organizational agility (OA) is an important ability that helps organizations to capture and utilize emerging opportunities rapidly by adjusting the activities of their ongoing new product development projects (Haider et al, 2021 ). Organizational agility refers to the ability of an organization of recognizing and responding to market variations (Rafi et al, 2021 ). Organizational agility enables firms to assess market information timely and appropriately in the decision-making regarding product development (Najafi-Tavani et al, 2018 ).…”

SMEs resiliencies and agility during pandemic Covid-19: a bibliography analysis and future directions

“…Therefore, a strategic plan is needed to ensure that the organization's operational activities continue despite disruptions, to ensure business continuity in a pandemic scenario and post-pandemic recovery. Research on organizational agility has been carried out by several researchers [3][4] associated with organizational performance [5] market orientation [6] but in the context of SMEs still needs to be explored [7] to provide a complete picture of how to be more agile in dealing with turbulence [8]. In addition to being agile, SMEs are also very important for resilience in dealing with crisis [9] so creative in facing challenges [10] have sustainability [11] have the right response [12] relevant strategy [13] in building a sustainable competitive advantage [4].…”