The central role of knowledge management in business operations

Abstract

Purpose – Knowledge Management (KM) is a contemporary research field of high interest for both academics and practitioners. For more than 15 years, successful companies have used KM as their most valuable source of competitive advantage. The purpose of this paper is attempt to extend the existing empirical approaches (research models), by focusing on the process of KM and its diffusion throughout the organisation. Design/methodology/approach – The present study proposes a newly developed conceptual framework that adopts a four-step approach, highlighting four areas of interest that have never been simultaneously examined before: knowledge antecedents, KM process, KM outcomes (satisfaction from the KM process) and individual (employee) outcomes. The proposed conceptual framework is tested, using a structured questionnaire, in a sample of 211 bank employees. The reliability and the validity of the questionnaire were thoroughly examined, while research hypotheses were tested using the “Structural Equation Modelling” technique. Findings – The results revealed that companies with enhanced innovative culture and an organisational climate that facilitates cooperation between employees tend to promote and ultimately maximise knowledge diffusion. Moreover, a contribution of the present study is the empirical confirmation of the relationship between the proposed factor “satisfaction from the knowledge management process” and both organisational commitment and job satisfaction. Research limitations/implications – A limitation stemming from the adopted methodology is the use of self-report scales to measure the factors (constructs) of the proposed model. Moreover, the present paper lacks a longitudinal approach, since it provides a static picture (snapshot) of the application of KM within enterprises. Practical implications – The paper highlights-specific areas (factors) that companies should enhance in order to harvest the potential benefits of KM. According to the empirical findings, organisations should focus on their human capital when managing their knowledge processes. After all, employee satisfaction from the KM process is found to be crucial for enhancing their job satisfaction and job performance. Originality/value – The paper proposes an enhanced conceptual framework that incorporates critical issues concerning the successful implementation of KM, thus, providing valuable tools for decision makers and academics. Its originality lies in the nature of its approach. More specifically, the present study examines the impact of KM on individual-level (employee), something that rarely appears in the relevant literature. Additionally, it incorporates “satisfaction from the knowledge management process” as a significant outcome of the KM process, thus, enriching the literature of the field. Finally, it investigates the impact of three contextual factors (innovative culture, organisational climate, inter-functional coordination) on KM process (externalisation, internalisation, socialisation, combination), adopting an approach that acknowledges KM as a function (factor) that transmits contextual influence onto individual effectiveness. The results of the study may be generalised in other sectors with similar characteristics (knowledge-intensive and learning organisations, service sector companies, etc) and in other developed countries whose financial institutions face similar challenges as the ones in Greece.

The Impact of Internal Factors on Small Business Success: A Case of Small Enterprises Under the Felda Scheme

“…While there are substantial researches that reported an association between business success and knowledge sharing (Egbu et al, 2005;Ngah & Jusoff, 2009;Chatzoudes et al, 2015), this study appears to have found insufficient empirical evidence to support this contention. This phenomenon occurs, perhaps due the low level of participation on such practice among employees of small firms (Durst & Runar Edvardsson, 2012).…”

“…The strategic importance of technological usage is well acknowledged in the literature as a factor that could enhance business success (Jasra et al, 2011;Raymond & Bergeron, 2008;Chatzoudes et al, 2015). Firms that utilise the latest technology tend to capture customers more than their competitors (Valacich & Schneider, 2014).…”

“…This in turn would facilitate firms to gain and sustain competitive advantage. Few studies on small business performance have associated a strong link between technology resources and business success (Chatzoudes et al, 2015;Dibrel, Davis, & Craig, 2008;Kim et al, 2008). Those studies reported that information technology as vital for the small business to sustain innovation, promote customer loyalty, and stimulate demand for other products offered by the small business.…”

“…Purposeful sharing of useful knowledge for rapid individual and organisational learning can lead to innovation and development of better products, thus enhancing market performance (Egbu et al, 2005;Ngah & Jusoff, 2009;Chatzoudes et al, 2015). Small businesses tend to provide an environment that is conducive to generate knowledge due to their size and closer social relationships of employees, resulting in good communication flows that foster knowledge sharing (Chase, 2004).…”

Translating the impact of knowledge management into knowledge‐based innovation: The neglected and mediating role of knowledge‐worker satisfaction

“…Argumentatively, it can also be maintained that knowledge management can act as an antecedent of knowledge‐worker satisfaction. The arguments are as follows (e.g., Chatzoudes et al., ; Chou et al., ; Kianto et al., ; Nonaka & Takeuchi, ; Razmerita, Kirchner, & Nielsen, ; Shannak, ; Singh & Sharma, ; Tseng & Fan, ). First, the literature review posits that knowledge management should be evaluated by the subjective measures like the satisfaction of knowledge workers instead of objective measures.…”