What affects organizational performance?. The linking of learning and knowledge management
| Published date | 31 October 2008 |
| Date | 31 October 2008 |
| Pages | 1234-1254 |
| DOI | https://doi.org/10.1108/02635570810914919 |
| Author | Li‐An Ho |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
What affects organizational
performance?
The linking of learning and knowledge
management
Li-An Ho
Department of Educational Technology, Tamkang University,
Tamsui, Taiwan
Abstract
Purpose – The purpose of this paper is to propose a conceptual structural equation model to
investigate the relationships among self-directed learning (SDL), organizational learning (OL),
knowledge management capability (KMC) and organizational performance (OP) and to demonstrate
the direct and indirect effect of SDL on OP from the perspectives of KMC and OL.
Design/methodology/approach – An empirical study is conducted in 21 technological companies
(N¼236) in Taiwan and the collected survey data are used to test the relationships among the four
dimensions expressed in the proposed structural equation model.
Findings – The results show that SDL has a direct and significant impact on OL and KMC. SDL
influences OP indirectly through OL and KMC. In addition, OL and KMC have direct and significant
influences on OP.
Research limitations/implications – The source of data collected is Taiwan, hence, the results
may not be easily generalized to other areas or countries. However, the findings are valuable for
managers’ reference, especially for those whose circumstances are similar to those in Taiwan.
Practical implications – The conceptual structural equation model provides useful information for
managers to enhance OP through the adoption of appropriate SDL, OL and KMC strategies.
Originality/value – The study demonstrates how SDL indirectly impacts OP and illustrates the
paths of influence through either OL or KMC.
Keywords Self-managedlearning, Workplace training, Knowledgemanagement,
Organizationalperformance
Paper type Research paper
1. Introduction
The recent technological advancement opens a new era, in which a global competitive
environment has emerged. Traditional organizational management is no longer
considered an appropriate strategy in this highly competitive global market.
Consequently, businesses must compete for their survival through continuous
improvement and innovation to maintain or gain market advantages. In other words,
businesses need innovation in order to obtain opportunities for survival. Resistance to
innovationis likely to result in crumbledenterprises (Leavy,1998). Although globalization
has opened worldwide trade markets, which brings businesses opportunities that have
never been seenbefore, this phenomenon also opensthe door to numerous competitorsin
various industries. As a result, “employees” are no longer considered as “laborers” who
only contribute their manpower. As Drucker (1993) points out,knowledge workers have
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IMDS
108,9
1234
Received 1 May 2008
Revised 23 June 2008
Accepted 11 July 2008
Industrial Management & Data
Systems
Vol. 108 No. 9, 2008
pp. 1234-1254
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635570810914919
become the most vital asset in the knowledge-based society. Therefore, qualified
employees are a critical component of business success, and effective strategies for
continuously enhancing employees’ competency are in urgent needs.
In Jantunen’s (2005) research, he states that knowledge is posited in an organization
as a strategic asset which can help the firm maintain its competitive ability in a turbulent
environment. In fact, knowledge-based assets and organizational learning (OL)
capabilities are critical for a firm’s innovation activities (Jantunen, 2005). KM is aimed at
getting people to innovate, collaborate, and make correct decisions efficiently; in short, it
is aimed at getting people to act by focusing on high-quality knowledge (June , 2005).
Knowledge is considered the most important resource in organizations (Choe, 2004), and
the characteristics and problems of knowledge do not differ because of different
geographic locations (Singh et al., 2008). The success of organizations consequently is
built upon organizations’ and individuals’ speeding learning. Thus, learning in
organization is the k ey for organization s to sustain competit ive advantages.
As Jude-York (1991) points out, organizations striving in today’s fast changing
marketplace arefacing the need to have employees who knowhow to learn and who can
quickly retool and be ready for new challenges. Self-directed learners seem to be
individualswho are most likely to succeedat this and are becoming an increasingvaluable
resource within themodern organizations (Senge, 1990; Naisbitt and Aburdene,1985).
A number of existing studies indicate that self-directedness in learning among
employees has an important part to play in the competitiveness of enterprises during
the 1990s (Edwards, 1995; Calder and McCollumn, 1998; Robinson and Arthy, 1999).
Self-directedness among workers is an objective worthy of pursuit by organizations
wishing to achieve knowledge and skill development for a competitive edge in a
rapidly changing industrial context (Smith et al., 2007). As Smith (2002) points out:
[...] there is considerable commercial value in encouraging employees to become effective
self-directed learners such that they can develop and pursue their learning goals and
outcomes that contribute to competitiveness without the need for all learning to occur only
when there is direct training by an instructor (p. 100).
However, even current literature is rich in discussion of self-directed learning (SDL),
the evidence that the development of SDL is not well supported in the workplace
(Smith et al., 2007).
In addition, current studies indicate that a number of organizations have
implemented OL strategies (Chan and Ngai, 2008; Lee and Gandolfi, 2007; Chen et al.,
2006; Chen and Holton, 2005; Pai, 2006), and have rolled out various professional
training programs, SDL and KM programs with the goal of improving organizational
performance (OP; Davenport et al., 1998; Gold et al., 2001; Kim and Kil, 2008; Reus and
Liu, 2004; Hashim, 2008; Smith et al., 2007; Beitler and Mitlacher, 2007). However,
improper strategic planning, insufficient organizational infrastructure and
inappropriate diffusion processes may have decreased the value of learning as well
as KM, which consequently disappoints employees. Therefore, establishing a
systematic organizational structure and fostering an organizational culture which
promotes active learning and information sharing are critical issues that should be the
focus of all modern organizations (Wickramasinghe, 2007).
This study intends to propose a model to investigate the relationships among SDL,
OL, KM capability (KMC) and OP using structural equation modeling. The research
participants are from 21 electronic industrial listed and over-the-counter listed
Learning and
knowledge
management
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