The Role of Knowledge Management Process and Intellectual Capital as Intermediary Variables between Knowledge Management Infrastructure and Organization Performance

Abstract

Aim/Purpose: The objective of this study was to assess the interrelationships among knowledge management infrastructure, knowledge management process, intellectual capital, and organization performance. Background: Although knowledge management capability is extensively used by organizations, reaching their maximum financial and non-financial performances has not been fully researched. Therefore, organizations need to optimize their performance by exploiting knowledge management capability through the accumulation of intellectual capital, where the new competitiveness is shifting from tangible to intangible resources. Methodology: This study adopted a positivist philosophy and deductive approach to accomplish the main goal of this research. Moreover, this research employed a quantitative approach since this study is concerned with causal relationship between variables. A questionnaire-based survey was designed to evaluate the research model using a convenience sample of 134 employees from the food industry sector in Jordan. Surveyed data was examined following the structural equation modeling procedures. Contribution: This study highlighted the potential benefits of applying the knowledge management capabilities, intellectual capital, and organizational performance to the food industrial sector in Jordan. Future research suggestions are also provided. Findings: Results indicated that knowledge management infrastructure had a positive effect on knowledge management process. In addition, knowledge management process impacted positively intellectual capital and organization performance and mediated the relationship between knowledge management infrastructure and intellectual capital. However, knowledge management infrastructure did not positively associate to organization performance. Recommendations for Practitioners: The current model is designed to help managers and decision makers to improve their management capabilities as well as their organization financial and non-financial performance through exploiting the organizational knowledge management infrastructure and intellectual capital approaches. Recommendation for Researchers: Our findings can be used as a base of knowledge to conduct further studies about knowledge management capabilities, intellectual capital, and organization performance following different criteria and research procedures. Impact on Society: The designed model highlights a significant organizational performance approach that can influence Jordanian food industrial sector positively. Future Research: The current designed research model can be applied and assessed further in other sectors including banking and industrial sectors across developed and developing countries. Also, we suggest that in addition to focusing on knowledge management process and intellectual capital as mediating variables, future research could test our findings in a longitudinal study and examine how to affect financial and non-financial performance.

The Effectiveness of Knowledge Management and Export Performance among Malaysian SMEs: Mediated by Innovation

“…Obeid and Rabay'a (2016) mentioned that knowledge acquisition includes the processes in which the organization seek to produce and create knowledge, either in between implicit knowledge and explicit knowledge in which it is an interaction between implicit knowledge and explicit knowledge through new knowledge is created and created within the organization to secure the various types of knowledge in favour of future decisions (Abualoush, Masa'deh, Bataineh, & Alrowwad, 2018;Zawaideh, Al-Zoubi, Abualoush, Kanaan, & Masa'deh, 2018).…”

Impact of Intangible Assets (Intellectual Capital, Knowledge Management) on Innovation: A Study on Tourist Agencies in Jordan (Tourist Agencies in Irbid)

“…It is the key to survival in a rapidly changing environment and a key factor in achieving productivity, efficiency and success. Intellectual capital is one of the key determinants of all organizations, creating value and competitive advantage that enable organizations attain success (Abualoush et al, 2018a;Dost et al, 2016). IC is a blend of intangible assets, such as expertise, knowledge, ability, capability, customer relationship, information technology, structures, creative and social values, These can be utilized to make an organizational value and extend a competitive advantage.…”

“…Structural capital (SC); knowledge of the organization that lies in the organization's databases, structures, systems, culture, processes, patents, and information systems. Structural capital also represents routine and procedures (including performance measurement) and techniques that distinguish the internal environment for organizations (Cavicchi, 2017), Know how to generate, retain, transfer and manage knowledge efficiently to create not only new value for shareholders but also to create a sustainable competitive edge and, most importantly, to realize High performance (Abualoush et al, 2018a). Customer Capital; (Relationships developed by the organization with shareholders): Referred to strategic affinity with inside and out shareholders (suppliers, customers, staffs) or the organization's relationships with suppliers, customers, brand names, and trademarks (Wasim ul Rehman, 2015).…”

“…For organizations, the higher the quality of human capital, the better its core competitiveness. In addition to the direct impact of human capital on the efficiency of the organization in innovation, areas that are closely related to human capital such as effective human resources system and employees training can also greatly affect innovation (Abualoush et al, 2018a;Obeidat et al, 2017;. In addition, Agostini and Nosella, (2017) noted that innovation and development depends mainly on the quality of employees, because employees' Capabilities and skills are the prerequisites for creating fresh and innovative thoughts, Hence, human capital is supposed to feed both customer capital and structural capital.…”

“…Technological development changes the dynamics within the organizations' environment, an uncertain and rapidly changing environment. The faster this change is, the more important the innovation becomes (Teixeira et al,2018;Abualoush et al,2018a), fast technological changes, more desired customers, and the significance of innovation have transformed the foundations of competition for many companies away from traditional material and financial resources to intellectual assets, Thus, there is widespread recognition that intellectual assets (strategic resources) and vital or crucial factors drive business development (Kamukama et al,2010), modern technologies have helped to changing consumption and production patterns, which also impact changes in companies and their goods and processes (Bolisani & Bratianu 2017, Abualoush,2016, These changes require efforts by organizations that need different monitoring Knowledge sources and access within and outside the organization such as employees, customers, suppliers and competitors, to blend that knowledge to influence innovation, and to observe the development of new markets. (Bolisani & Bratianu, 2017;Dayan et al, 2017).…”