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1 – 10 of 35Knowledge management (KM) has emerged as one of the most discussed new management methods. Among the most debated areas in KM has been the association between knowledge and firm…
Abstract
Purpose
Knowledge management (KM) has emerged as one of the most discussed new management methods. Among the most debated areas in KM has been the association between knowledge and firm performance, but a lack of understanding and consensus still remains as a major issue. This paper aims to address the research gap by reviewing the empirical literature and determining how KM-based managerial and organizational practices are related with firm performance.
Design/methodology/approach
This study followed a systematic review procedure.
Findings
The findings demonstrate that utilization of KM practices is significant driver for innovation. Also, specific leadership characteristics and organizational arrangements are likely to support firm performance through more efficient and effective management of knowledge resources.
Research limitations/implications
This study adds to the discussion on knowledge-based view of the firm by pointing out the key organizational and managerial practices that are associated with firm performance. The results of this study also add structure to the previously scattered discussion on KM practices by synthesizing the relevant literature
Practical implications
Measuring KM performance is characterized by organizational complexity; this study demonstrated that innovation is a likely outcome of utilization of KM practices, but there are numerous other factors that influence the financial performance figures. Also, this study points out that organizations should pay attention to specific KM leadership attributes and organizational arrangements in order to achieve firm performance through KM.
Originality/value
This is the first systematic literature review on KM practices and firm performance. The results increase understanding of efficient and effective management of knowledge resources for organizational benefit.
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Henri Inkinen, Aino Kianto, Mika Vanhala and Paavo Ritala
Academics and practitioners around the world have shown interest in what constitutes the relevant intellectual capital (IC) in firms. However, studies have largely neglected to…
Abstract
Purpose
Academics and practitioners around the world have shown interest in what constitutes the relevant intellectual capital (IC) in firms. However, studies have largely neglected to examine whether IC has identical or different structural elements in various parts of the world. The purpose of this paper is to suggest that country-specific institutional structures may impact the perception of IC, and empirically analyse whether differences exist between five countries drawing on the institutional theory.
Design/methodology/approach
This study tests for the differences in the underlying categorizations of IC in a sample consisting of 708 firms across five countries. Confirmatory factor analysis and comparison of different possible IC models are conducted to empirically examine the IC structure.
Findings
The results demonstrate that IC has predominantly the same underlying elements across the examined countries. However, trust capital in Finland and renewal capital in Serbia are structurally different compared to other countries.
Research limitations/implications
Institutional theory and multinational corporate superculture can explain the similarity in the IC structures across countries. Specifically, globalized markets carry institutionalized rules, norms, and expectations for the participating firms; under the influence of this superculture, the firms begin to assimilate. Conversely, the differences suggest that some country- and culture-specific differences remain even during the transition to global markets.
Originality/value
This study is among the first to question the assumption that IC has identical structural elements across the world, and merges theories of IC and institutions to explain the possible origins of these differences.
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Henri Hussinki, Paavo Ritala, Mika Vanhala and Aino Kianto
The purpose of this paper is to examine the association of different configurations of intellectual capital (IC) and knowledge management practices (KMP) with firm performance. Do…
Abstract
Purpose
The purpose of this paper is to examine the association of different configurations of intellectual capital (IC) and knowledge management practices (KMP) with firm performance. Do firms with different profiles concerning their overall levels of IC and KMP differ in terms of innovation and market performance?
Design/methodology/approach
First, the firms were distributed into four distinct profiles based on their overall level of IC and utilization of KMP. Then, the four different IC/KMP profiles were evaluated with regard to their innovation and market performance.
Findings
Consistent with the extant research, this study finds that the firms characterized with high levels of IC and high use of KMP are likely to outperform the firms with low overall levels of IC and KMP. On more interesting note, this study also demonstrates that firms characterized with high level of IC but only low utilization of KMP can match the innovation performance of the firms with high levels of IC and KMP.
Practical implications
While the results indicate that the level of IC alone could predict the innovation potential of the firm, the firms should use KMP to leverage the IC and to capitalize the knowledge potential. This result shows the merits of letting innovation flourish without strict managerial control, while pinpointing the relevance of knowledge management (KM) in exploitation of IC.
Originality/value
As one of the first attempts to merge the IC and KM approaches to find out which configurations could influence firm performance outcomes, this study provides the research community with valuable insights and sets the tone for further discussion.
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The basis of value creation has shifted from tangible factors of production towards intangible resources such as intellectual capital (IC) (e.g. Grant, 1996). The average…
Abstract
Purpose
The basis of value creation has shifted from tangible factors of production towards intangible resources such as intellectual capital (IC) (e.g. Grant, 1996). The average organisation’s IC has been estimated to be three to four times over its book value (Edvinsson and Malone, 1997); thus, it is vital for companies to understand how it is created, managed, measured and evaluated. However, there are still many debated and complex issues, and the empirical measurement of IC is one of those. The purpose of this paper is to determine if IC systematically influences firm performance.
Design/methodology/approach
A systematic review procedure was utilised as this study’s research design.
Findings
The findings demonstrate that IC influences firm performance mainly through interactions, combinations and mediations. Also, there is a great deal of evidence on the significant relationship between IC and firm’s innovation performance.
Research limitations/implications
This paper reviews only empirical studies based on survey data and statistical methods of analysis.
Practical implications
The research points to some focal aspects of IC that are associated with firm performance.
Originality/value
This is the first study to review empirical literature on IC and firm performance. It increases the current understanding by bringing together the research related to the issue and drawing meta-level analysis.
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Henri Tapio Inkinen, Aino Kianto and Mika Vanhala
Recent empirical studies have suggested that knowledge-based issues are closely related to companies’ innovation performance. However, the majority of research seems to be focused…
Abstract
Purpose
Recent empirical studies have suggested that knowledge-based issues are closely related to companies’ innovation performance. However, the majority of research seems to be focused either on static knowledge assets or knowledge processes such as knowledge creation. The purpose of this paper is to concentrate on the conscious and systematic managerial activities for dealing with knowledge in firms (i.e. knowledge management (KM) practices), which aim at innovation performance improvements through proactive management of knowledge assets. The study explores the impact that KM practices have on innovation performance.
Design/methodology/approach
The authors provide empirical evidence on how various KM practices influence innovation performance. The results are based on survey data collected in Finland during fall 2013. The authors use partial least squares to test the hypothesized relationships between KM practices and innovation performance.
Findings
The authors find that firms are capable of supporting innovation performance through strategic management of knowledge and competence, knowledge-based compensation practices, and information technology practices. The authors also point out that some of the studied KM practices are not directly associated with innovation performance.
Originality/value
This study adds to the knowledge-based view of the firm by demonstrating the significance of the management of knowledge for innovation performance. Furthermore, the division of KM practices into ten types and the provision of the validated scales for measuring these add to the general understanding of KM as a field of theory and practice. This study is valuable also from managerial perspective, as it sheds light on the potentially most effective KM practices to improve companies’ innovation performance.
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Antonio Lerro, Roberto Linzalone and Giovanni Schiuma
This introduction paper to the special issue on “Managing intellectual capital dimensions for organizational value creation” aims to focus on the relationships between…
Abstract
Purpose
This introduction paper to the special issue on “Managing intellectual capital dimensions for organizational value creation” aims to focus on the relationships between intellectual capital (IC), innovation, performance improvement and competitive advantage in private and public organizations. The purpose of this paper is to review and underline some relevant theoretical pillars and contribute to the ongoing debate on how knowledge assets may impact organizational performance and innovation dynamics.
Design/methodology/approach
The paper is based on a deep analysis of the managerial literature addressing the nature, the role and the relevance of the IC dimensions for organizational value creation. The conceptual background sets the foundations for a better understanding of the strategic importance of knowledge-based value drivers for innovation and sustainable competitive advantage.
Findings
This paper provides a framework summarizing the key assumptions at the basis of a better understanding the strategic relevance of the knowledge-based value drivers for competitiveness.
Originality/value
The value of this paper is the definition of a conceptual framework outlining the relationships between IC management, innovation, performance improvement and value creation capacity.
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Henri Hussinki, Aino Kianto, Mika Vanhala and Paavo Ritala
This paper aims to contribute to the emerging discussion on the contextualization of knowledge-oriented research by examining the universality of knowledge management (KM…
Abstract
Purpose
This paper aims to contribute to the emerging discussion on the contextualization of knowledge-oriented research by examining the universality of knowledge management (KM) practices. Knowledge is a firm’s most valuable resource, and KM, or the ability to leverage knowledge resources, constitutes the base for the firm’s competitive advantages.
Design/methodology/approach
A theorized ten-fold conceptualization of KM practices is tested on a sample of 622 firms from four countries (Finland, Spain, China and Russia). Confirmatory factor analysis and principal component analysis are used to test the applicability of the concept in various country contexts.
Findings
The findings provide interesting evidence of variation in the managerial assessment of KM practices among countries. This shows that KM practices are socially embedded phenomena, affected by the managers’ institutional and cultural contexts.
Research limitations/implications
Researchers and managers are advised to be mindful of the differences in terms of KM practices between the studied countries and to display a certain cultural sensitivity when approaching KM.
Originality/value
The paper is the first to examine the managerially assessed structure of KM practices in a cross-country context with multi-firm datasets. The results will help to determine the similarity of KM practices in four economically and culturally distinct countries. It also adds to the discussion about the potential national peculiarities of KM and provides a novel concept of KM practices, which is tested in a cross-national context. Thus, this study provides an outline for future KM studies and increases managerial understanding about the variety of value-creating KM practices.
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Paavo Ritala, Aino Kianto, Mika Vanhala and Henri Hussinki
Firms need to constantly renew themselves to keep up with the pace of competition and proactively establish innovations to the markets. This requires capabilities in learning and…
Abstract
Purpose
Firms need to constantly renew themselves to keep up with the pace of competition and proactively establish innovations to the markets. This requires capabilities in learning and renewing of the firm’s knowledge base, conceptualized as renewal capital of the firm. On the other hand, firms that acquire high levels of competitiveness by renewing their knowledge base also need to protect that knowledge from unwanted spillovers. This study aims to examine how renewal capital affects incremental and radical innovation performance of the firm, moderated by the firm’s protection of its strategic knowledge.
Design/methodology/approach
The study is based on a multi-industry survey study with a time-lagged data set, with independent variables collected in the first wave, followed by a second wave four years later for the dependent variables. The authors test the hypotheses using partial least squares structural equation modeling.
Findings
The authors find that firms’ renewal capital is positively associated with the level of incremental and radical innovation. Furthermore, the authors find that knowledge protection negatively moderates the relationship between renewal capital and incremental innovation performance of the firm. In case of radical innovation performance, similar moderating effect is not statistically supported.
Originality/value
With a time-lagged research design, this study study reveals the interdependent roles of renewal capital and knowledge protection for firm’s innovation performance, and provides insights of when (and when not) it would be beneficial for a firm to seek renewal and protective oriented approaches.
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Henry Boateng, George Oppong Appiagyei Ampong, Diyawu Rahman Adam, Kwame Simpe Ofori and Robert Ebo Hinson
The purpose of this paper is to examine the role of social interaction ties, trust and business networks in the acquisition of foreign business knowledge and foreign institutional…
Abstract
Purpose
The purpose of this paper is to examine the role of social interaction ties, trust and business networks in the acquisition of foreign business knowledge and foreign institutional knowledge. It also assesses the effect of these types of knowledge on small and medium enterprises’ (SME) export performance. Furthermore, this study determines the moderating role of absorptive capacity in the relationship between foreign business knowledge, foreign institutional knowledge and export performance.
Design/methodology/approach
This study used a survey research design using data from nontraditional SME exporters in Ghana. There were 257 respondents who were employees (managers/owners) of SMEs in Ghana. The model was analyzed using structural equation modeling.
Findings
Social interaction ties, trust and business networks have a significant effect on the acquisition of foreign business knowledge and foreign institutional knowledge. Furthermore, foreign business knowledge and foreign institutional knowledge have a significant positive effect on export performance. The path between foreign business knowledge and export performance is also moderated by absorptive capacity. However, the moderating role of absorptive capacity in the relationship between foreign institutional knowledge and export performance is not significant.
Originality
This study uses social capital to explain how SMEs acquire foreign business knowledge and foreign institutional knowledge, and how both affect SMEs’ export performance. Furthermore, it tests the moderating role of absorptive capacity in the relationship between foreign business knowledge, foreign institutional knowledge and export performance.
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