Linking knowledge processes with firm performance: organizational culture

Herbert A. Nold III (MeLange Global Solutions, LLC, Lakeland, Florida, USA, and Polk State College, Winter Haven, Florida, USA)

Journal of Intellectual Capital

ISSN: 1469-1930

Publication date: 13 January 2012

Abstract

Purpose

The purpose of this paper is to report the results of a matched sample comparison group study of elements of organizational culture that enable knowledge processes to drive superior firm performance.

Design/methodology/approach

A matched sample comparison group approach was used to compare firm performance among matched pairs of public companies. Companies demonstrating high levels of trust (benchmark group) were matched with firms of similar size in the same industries demonstrating lower levels of trust (control group).

Findings

The benchmark group generated significantly superior value, operating performance, and had higher average annual growth rates than matching firms in the control group. Firms with higher relative levels of trust embedded in the organizational culture are more likely to outperform similar firms with lower levels of trust.

Research limitations/implications

The findings are based on surveys and financial performance of companies with securities traded on stock exchanges in the USA and may not represent other organizational forms, other geographic, economic, or cultural environments.

Practical implications

This study begins to identify a link between knowledge management, organizational learning, and knowledge creation (collectively knowledge processes) with firm performance.

Social implications

Identifying elements of organizational culture that link knowledge processes with firm performance is essential to developing a leadership model that reinforces enabling cultural attributes.

Originality/value

Many researchers have identified a lack of empirical research linking knowledge processes with firm performance. This study begins to fill the research gap with evidence that elements of organizational culture, specifically trust, enable firms to convert knowledge and learning initiatives into tangible performance recognized by financial markets.

Keywords

Citation

Nold, H. (2012), "Linking knowledge processes with firm performance: organizational culture", Journal of Intellectual Capital, Vol. 13 No. 1, pp. 16-38. https://doi.org/10.1108/14691931211196196

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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