Knowledge management capability and organizational performance: a moderated mediation model of environmental dynamism and opportunity recognition

Abstract

PurposeKnowledge management in any organization is important in enhancing the organization’s performance. This study aims to explore the influence of knowledge management capability on organizational performance with the mediation role of opportunity recognition and the moderation effect of environmental dynamism.Design/methodology/approachThis study used an effective and well-developed survey to collect data from 387 managers working in different service organizations in the Kingdom of Saudi Arabia. Further, SmartPLS software was used for data analysis.FindingsThe outcomes confirm that knowledge management capability is directly and indirectly (via opportunity recognition) related to organizational performance. Environmental dynamism moderates the linkage between knowledge management capability and opportunity recognition, as well as between opportunity recognition and organizational performance.Research limitations/implicationsThis study provides a valuable and novel managerial and theoretical approach for management to improve firm performance with the help of knowledge management capabilities, opportunity recognition, and environmental dynamism. The findings of this paper can be implemented not only in the service sector but also in the production sector. Future studies can use this conceptual framework in different countries with the current data. Moreover, other analytical approaches can be used to check the variability of these findings.Originality/valueThis study contributes to connecting research gaps in the literature and advancing insights into how knowledge management capabilities affect organizational performance. The study explores the mediating role of opportunity recognition and environmental dynamics as moderators between knowledge management capability and opportunity recognition and between opportunity recognition and organizational performance.

Dynamic firm performance: Entrepreneurship, knowledge, social media, customer relationship management, environment

“…Additionally, they study highlighted the moderating role of ED, indicating its positive influence on the relationship between SMUC and firm performance in Ethiopia and between SMUC, CRMC and firm performance in China, consistent with previous research (AlMulhim, 2023;Eloranta & Turunen, 2015). The study also addresses the previous studies' calls to examine the mediating role of the KBC (Lim & Kim, 2020), SMUC (Qalati et al, 2022) and CRMC (Foltean et al, 2019)…”

“…Knowledge-based capabilities is particularly crucial in the service industry, enhancing firm performance in dynamic environments by investing resources effectively (AlMulhim, 2023;Eloranta & Turunen, 2015). Matching firm resources with the dynamic environment requires teamwork and individual coordination, especially in information technology and innovation (Cetindamar et al, 2009).…”

“…The moderation effect of ED ensures that these capabilities (KBC, SMUC and CRMC) are finely tuned to the specific requirements of the dynamic environment. This moderation impact on the connection between KBC, SMUC and CRMC and the performance of firms is crucial for firms in dynamic environments (AlMulhim, 2023;Louro et al, 2019;Purwanti et al, 2022;Zhang & Zhu, 2021). Aligning these capabilities with the changing external conditions allows firms to adapt, gain a competitive edge, strategically allocate resources and enhance sustainability and resilience (Do et al, 2022).…”

Identifying key elements for evaluating organizations' complex adaptive leadership readiness (CAL-R framework): paving the way for a measurement tool development

“…better serving the market needs). Performance is a multifaceted construct, defining the ability of an organization to meet its main goals and reach its key objectives and including various aspects of organizational practice, such as financial growth, productivity, customers', employees' or other stakeholders' satisfaction etc (AlMulhim, 2023). By definition, performance cannot be objectively defined, and it is context dependent, based on organizational and market characteristics (Pavlov and Micheli, 2023).…”

“…), in order to render the system more adaptable and let adaptive behaviors emerge accordingly. In alignment with the definition of performance, which is meeting organizational vision and goals (AlMulhim, 2023), it has to be clarified here that the present framework is also meant to be applied to broader organizational contexts, e.g. for- or not-for-profit organizations, various types of institutions, etc.…”