Knowledge assets, capabilities and performance measurement systems: a resource orchestration theory approach

Abstract

Purpose

The pivotal role of knowledge management (KM) and its extensive implications have been debated in the academic literature with insufficient focus on its link to particular organizational control mechanisms such as performance measurement systems (PMS). To bridge this gap and building on resource orchestration theory, this paper aims to investigate the relationships between KM factors, PMS and corporate performance.

Design/methodology/approach

Based on a survey data set of 92 listed companies in Iran, the framework and hypotheses were tested using structural equation modeling (SEM) based on partial least squares (PLS).

Findings

The SEM-PLS results indicate that knowledge assets are significantly associated with both PMS and corporate performance while knowledge process capabilities (KPC) are not significantly associated with PMS and corporate performance. This study also shows that PMS mediates the relationship between knowledge assets and corporate performance.

Practical implications

The results suggest that the use of appropriate management control systems plays an effective role in synchronizing, aligning and orchestrating a company’s various knowledge resources, which, in turn, can lead to superior overall performance.

Originality/value

Building on a unique synthesis of resource orchestration theory and the knowledge-based view of the firm, the results of this study provide the first empirical evidence on how PMS intervenes in the relationship between knowledge resources (knowledge assets and KPC) and corporate performance.

Citation

Asiaei, K., Rezaee, Z., Bontis, N., Barani, O. and Sapiei, N.S. (2021), "Knowledge assets, capabilities and performance measurement systems: a resource orchestration theory approach", Journal of Knowledge Management, Vol. 25 No. 8, pp. 1947-1976. https://doi.org/10.1108/JKM-09-2020-0721