International Journal of Knowledge Management and Practices

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

The Effect of Knowledge Management Practices on Organisational Innovation: The Mediating Role of Intellectual Capital


Affiliations
1 Assistant Professor, Addis Ababa University, School of Commerce, Addis Ababa, Ethiopia., Ethiopia
     

   Subscribe/Renew Journal


The purpose of this study was to examine the effect of knowledge management practices on organisational innovation, with a mediating role of intellectual capital. To achieve its purpose, the study employed explanatory cross-sectional survey research design. The targeted population of the study was all the academic staff of the Ethiopian Civil Service University, with a sample of 150 staff from which primary data was collected. Both descriptive and inferential statistics were used to analyse data through SPSS version 24, Smart PLS 3, and bootstrapping. PLS algorism was run to evaluate causal effects and bootstrapping was used to see the significance level of effects. Results revealed that knowledge acquisition, knowledge sharing, and knowledge application practices have an influence on both intellectual capital and organisational innovation. While knowledge acquisition has a statistically significant indirect effect on organisational innovation knowledge sharing and knowledge application have a significant direct effect. Intellectual capital also has a significant mediating effect on the relationship between knowledge management practices and organisational innovation.

Keywords

Knowledge Management, Knowledge Acquisition, Knowledge Sharing, Knowledge Application, Intellectual Capital, Organisational Innovation
Subscription Login to verify subscription
User
Notifications
Font Size


  • Ahmad, N., & Daghfous, A. (2015). User development through proactive knowledge transfer. Industrial Management & Data Systems, 115(1), 158-181.

  • Argote, L., McEvily, B., & Reagans, R. (2003). Managing knowledge in organizations: An integrative framework and review of emerging themes. Management Science, 49(4), 571-582.

  • Asoh, D. A., Belardo, S., & Crnkovic, J. (2007). Assessing knowledge management: Refining and cross validating the knowledge management index using structural equation modeling techniques. International Journal of Knowledge Management (IJKM), 3, 1-30.

  • Bhatt, G. D. (2001). Knowledge management in organizations: Examining the interaction between technologies, techniques, and people. Journal of Knowledge Management, 5(1), 68-75.

  • Boudreau, J. W., & Ramstad, P. M. (1997). Measuring intellectual capital: Learning from financial history. Human Resource Management, 36(3), 343-56.

  • Bueno, E., Salmador, M. P., & Rodriguez, O. (2004). The role of social capital in today’s economy. Journal of Intellectual Capital, 5(4).

  • Cabrilo, S., & Dahms, S. (2018). How strategic knowledge management drives intellectual capital to superior innovation and market performance. Journal of Knowledge Management, 22(4), 806-828.

  • Capon, N., Farley, J. U., Lehmann, D. R., & Hulbert, J. M. (1992). Profiles of product innovators among large US manufacturers. Management Science, 38(2), 157-168.

  • Chen, C. J., & Huang, J. W. (2009). Strategic human resource practices and innovation performance - The mediating role of knowledge management capacity. Journal of Business Research, 62(1), 104-114.

  • Choo, C. W. (2003). Perspectives on managing knowledge in organizations. Cataloging & Classification Quarterly, The Haworth Information Press, 37(1/2), 205-220.

  • Crossan, M. M., & Apaydin, M. (2010). A multi-dimensional framework of organizational innovation: A systematic review of the literature. Journal of Management Studies, 47(6), 1154-1191.

  • Cunha, M. P., & Verhallen, M. M. (1988). Organizational innovation: An overview of topics, models and research directions. Comportamento Organizacional E Gestao, 4(2),5-33.

  • Daft, R. L. (1978). A dual-core model of organizational innovation. Academy of Management Journal, 21, 193-210.

  • Damanpour, F. (1996). The adoption of technological, administrative, and ancillary innovations: Impact of organizational factors. Journal of Management, 13(4), 675-688.

  • Darroch, J., & McNaughton, R. (2002). Examining the link between knowledge management practices and types of innovation. Journal of Intellectual Capital, 3(3), 210-222.

  • Davenport, T. H., & Prusak, L. (1998). Working knowledge: How organizations manage what they know. Harvard Business Press.

  • Debowski, S. (2006). Knowledge management. Milton, QLD, Australia: John Wiley & Sons.

  • Dhamdhere, S. N. (2015). Knowledge management model for higher educational institutes. Journal of Commerce and Management Thought, 6(1), 130-161.

  • Drucker, P. F. (1993). From capitalism to knowledge society: Post capitalist society (pp. 19-47). New York: Harper Business.

  • Eugenie, B. J. O. (2016). Knowledge management and business performance: Mediating effect of innovation. Journal of Business and Management Science, 4(4), 82-92.

  • Fabrizio, K. R. (2009). Absorptive capacity and the search for innovation. Research Policy, 38(2), 255-267.

  • Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics.

  • Gharakhani, D., & Mousakhani, M. (2012). Knowledge management capabilities and SMES’ organizational performance. Journal of Chinese Entrepreneurship, 4(1), 35-49.

  • Githii, S. K. (2014). Knowledge management practices and innovation performance: A literature review. IOSR Journal of Business and Management (IOSR-JBM), 16(2), 89-94.

  • Gloet, M., & Terziovski, M. (2004). Exploring the relationship between knowledge management practices and innovation performance. Journal of Manufacturing Technology Management, 15(5), 402-409.

  • Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge management: An organizational capabilities perspective. Journal of Management Information Systems, 18(1), 185-214.

  • Gumusluoglu, L., & Ilsev, A. (2009). Transformational leadership, creativity, and organizational innovation. Journal of Business Research, 62(4), 461-473.

  • Hage, J. T. (1999). Organizational innovation and organizational change. Annu. Rev. Sociol., 25, 597-622.

  • Hair Jr., J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM). European Business Review, 26(2), 106-121.

  • Holsapple, C. W., & Jones, K. (2011). Knowledge management strategy formation. In Encyclopedia of Knowledge Management (2nd ed., pp. 750-762).

  • Hong, D., Suh, E., & Koo, C. (2011). Developing strategies for overcoming barriers to knowledge sharing based on conversational knowledge management: A case study of a financial company. Expert Systems of Applications, 38(12), 14417-14427.

  • Huang, J. W., & Li, Y. H. (2009). The mediating effect of knowledge management on social interaction and innovation performance. International Journal of Manpower, 30(3), 285-301.

  • Hussinki, H., Ritala, P., Vanhala, M., & Kianto, A. (2017). Intellectual capital, knowledge management practices and firm performance. Journal of Intellectual Capital, 18(1).

  • Kamau, S. M. (2016). Relationship between knowledge management and organizational performance: A case study of United States International University–Africa (Doctoral dissertation). United States International University–Africa.

  • Kör, B., & Maden, C. (2013). The relationship between knowledge management and innovation in Turkish service and high-tech firms. International Journal of Business and Social Science, 4(4), 293-304.

  • Lawson, S. (2003). Examining the relationship between organization culture and KM(PhD thesis). Nova Southeastern University.

  • Lee, C. S., & Kelkar, R. S. (2013). ICT and knowledge management: Perspectives from the SECI model. The Electronic Library, 31(2).

  • Li, Q., & Chang, C. (2010). The customer lifetime value in Taiwanese credit card market. African Journal of Business Management, 4(5), 702-710.

  • Lin, H. F., & Lee, G. G. (2005). Impact of organizational learning and knowledge management factors on e-business adoption. Manag. Decis., 43, 171-188.

  • Lin, H. F. (2007). Knowledge sharing and firm innovation capability: An empirical study. International Journal of Manpower, 28(3/4), 315-332.

  • Mafabi, S., Munene, J., & Ntayi, J. (2012). Knowledge management and organizational resilience: Organisational innovation as a mediator in Uganda parastatals. Journal of Strategy and Management, 5(1), 57-80.

  • Marr, B., Gupta, O., & Roos, G. (2003). Intellectual capital and knowledge management effectiveness. Management Decision, 41(8), 771-781.

  • Marsick, V. J., & Watkins, K. E. (2003). Facilitating learning organizations: Making learning count. Gower Publishing, Aldershot.

  • McElroy, M. (2000). Integrating complexity theory, knowledge management and organizational learning. Journal of Knowledge Management, 4(3), 195-203.

  • McInerney, C. R., & Koenig, M. E. (2011). Knowledge management (KM) processes in organizations: Theoretical foundations and practice. Synthesis Lectures on Information Concepts, Retrieval, and Services, 3(1), 1-96.

  • Mol, M. J., & Birkinshaw, J. (2009). The sources of management innovation: When firms introduce new management practices. Journal of Business Research, 62, 1269-1280. Mouritsen, J., Nikolaj, P., & Marr, B. (2004). Reporting on intellectual capital: Why, what, and how? Measuring Business Excellence, 8(1), 46-54.

  • Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2), 242-266.

  • Nemani, R. R. (2010). The role of computer technologies in knowledge acquisition. Journal of Knowledge Management Practice, 11(3), 1-7.

  • Ngoc-Tan, N., & Gregar, A. (2018). Impacts of knowledge management on innovations in higher education institutions: Empirical evidence from Vietnam. Economics & Sociology, 11(3), 301-320.

  • Nonaka, I., Byosiere, P., Borucki, C. C., & Konno, N. (1994). Organizational knowledge creation theory: A first

  • comprehensive test. International Business Review, 3(4), 337-351.

  • Nouri, B. A., Ghorbani, R., & Soltani, M. (2017). The effect of knowledge management on organizational innovation with the mediating role of organizational learning (Case Study: Agricultural bank in Iran). Journal of Applied Economics & Business Research, 7(3).

  • Rajender, K., & Kumar, K. P. (2012). Knowledge management practices in SME sector: An empirical study. International Journal of Business and Management Tomorrow, 2(4), 1-9.

  • Rastogi, P. N. (2003). The nature and role of IC: Rethinking the process of value creation and sustained enterprise growth. Journal of Intellectual Capital, 4(2), 227-248.

  • Rowley, J. (2003). Knowledge management - The new librarianship? From custodians of history to gatekeepers to the future. Library Management, 24(8/9), 433-440.

  • Sallis, E., & Jones, G. (2013). Knowledge management in education: Enhancing learning and education. Routledge: London.

  • Sarstedt, M., Ringle, C. M., & Hair, J. F. (2014). PLS-SEM: Looking back and moving forward. Long Range Planning, 47(3), 132-137.

  • Singh, S. K. (2011). Organizational innovation as competitive advantage during global recession. Indian Journal of Industrial Relations, 713-725.

  • Ulrich, D. (1998). A new mandate for human resources. Harvard Business Review, 51, 125-134.

  • Valdez-Juárez, L. E., García-Pérez de Lema, D., & Maldonado-Guzmán, G. (2016). Management of knowledge, innovation and performance in SMEs. Interdisciplinary Journal of Information, Knowledge, and Management, IJIKM, 11, 141-176.

  • Yang, J., Lai, F., & Yu, L. (2005). Harnessing value in knowledge acquisition and dissemination: Strategic sourcing in product development. International Journal of Technology Management, 33(2-3), 299-317.

  • Yli-Renko, H., Autio, E., & Sapienza, H. J. (2001). Social capital, knowledge acquisition, and knowledge exploitation in young technology-based firms. Strategic Management Journal, 22(6-7), 587-613.

  • Zaim, S., Bayyurt, N., Tarim, M., Zaim, H., & Guc, Y. (2013). System dynamics modeling of a knowledge management process: A case study in Turkish Airlines. Procedia-Social and Behavioral Sciences, 99, 545-552.

  • Zennouche, M., Zhang, J., & Wang, B. W. (2014). Factors influencing innovation at individual, group and organisational levels: A content analysis. International Journal of Information Systems and Change Management, 7, 23-42.

  • Zhang, H., Shu, C., Jiang, X., & Malter, A. J. (2010). Managing knowledge for innovation: The role of cooperation, competition, and alliance nationality. Journal of International Marketing, 18(4), 74-94.


Abstract Views: 181

PDF Views: 0




  • The Effect of Knowledge Management Practices on Organisational Innovation: The Mediating Role of Intellectual Capital

Abstract Views: 181  |  PDF Views: 0

Authors

Abraraw Chane Workineh
Assistant Professor, Addis Ababa University, School of Commerce, Addis Ababa, Ethiopia., Ethiopia

Abstract


The purpose of this study was to examine the effect of knowledge management practices on organisational innovation, with a mediating role of intellectual capital. To achieve its purpose, the study employed explanatory cross-sectional survey research design. The targeted population of the study was all the academic staff of the Ethiopian Civil Service University, with a sample of 150 staff from which primary data was collected. Both descriptive and inferential statistics were used to analyse data through SPSS version 24, Smart PLS 3, and bootstrapping. PLS algorism was run to evaluate causal effects and bootstrapping was used to see the significance level of effects. Results revealed that knowledge acquisition, knowledge sharing, and knowledge application practices have an influence on both intellectual capital and organisational innovation. While knowledge acquisition has a statistically significant indirect effect on organisational innovation knowledge sharing and knowledge application have a significant direct effect. Intellectual capital also has a significant mediating effect on the relationship between knowledge management practices and organisational innovation.

Keywords


Knowledge Management, Knowledge Acquisition, Knowledge Sharing, Knowledge Application, Intellectual Capital, Organisational Innovation

References