The effect of knowledge management, organizational culture and organizational learning on innovation in automotive industry
The main objective of this study was to examine the direct and indirect effects of organizational culture, knowledge management and organizational learning on innovation. The study combined knowledge-based view theory (KBV), competitive value framework to develop a new original theoretical framework for investigation of factors that affect innovation. Data was gathered from a survey of 279 companies supplying automobile parts to Iran Khodro Company, an Iranian leading automobile manufacturer. Study discovered that organizational culture and knowledge management influenced organizational innovation. Besides that, organizational learning played a significant role as a mediator in that relationship. However, knowledge management was not considered as a mediator in the relationship between organizational culture and organizational innovation. As a practical contribution, the findings of the study serve as a guideline for policy makers and managers in the formulation of policies and strategies for sustainable innovation. Knowing the effectiveness of the innovation can help the government to make decisions about the continuation of this policy. Moreover, study contributes to firm management in formulation of policies and strategies for sustainability in innovation context. Innovation assists organizations supplying the product or service in the automotive sector to operate innovatively, competitively and profitably.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Andreeva, T. 2009. Tensions between knowledge creation and knowledge sharing: individual preferences of employees in knowledge-intensive organizations. Chapter 28, in D. Jemielniak, J. Kociatkiewicz (Eds.). Handbook of research on knowledge-intensive organizations. IGI Global. https://doi.org/10.4018/978-1-60566-176-6.ch028
Andreeva, T.; Kianto, A. 2011. Knowledge processes, knowledge-intensity and innovation: a moderated mediation analysis, Journal of Knowledge Management 15(6): 1016–1034. https://doi.org/10.1108/13673271111179343
Auernhammer, J.; Hall, H. 2014. Organizational culture in knowledge creation, creativity and innovation: Towards the Freiraum model, Journal of Information Science 40(2): 154–166.
Azadi, A.; Farsani, M. E.; Rizi, R. M.; Aroufzad, S. 2013. Relationship between organizational culture and organizational learning among employees in physical education organizations, European Journal of Sports and Exercise Science 2(1): 12–16.
Barclay, D.; Higgins, C.; Thompson, R. 1995. The partial least squares (PLS) approach to causal modeling: Personal computer adoption and use as an illustration, Technology Studies 2(2): 285–309.
Božić, L. 2006. The effects of market orientation on product innovation, Privredna kretanja i ekonomska politika [Economic Trends and Economic Policy] 107: 46–65.
Brachos, D.; Kostopoulos, K.; Soderquist, K. E.; Prastacos, G. 2007. Knowledge effectiveness, social context and innovation, Journal of Knowledge Management 11(5): 31–44. https://doi.org/10.1108/13673270710819780
Cameron, K. S.; Quinn, R. E. 2006. Diagnosing and changing organizational culture. Wiley.
Cameron, K. S.; Quinn, R. E. 2011. Diagnosing and changing organizational culture: Based on the competing values framework. New York: John Wiley & Sons.
Chang, S.-C.; Lee, M.-S. 2007. A study on relationship among leadership, organizational culture, the operation of learning organization and employees’ job satisfaction, The Learning Organization 14(2): 155–185. https://doi.org/10.1108/09696470710727014
Cheng, C. J.; Shiu, E. C. 2008. Re-innovation: The construct, measurement, and validation, Technovation 28(10): 658–666. https://doi.org/10.1016/j.technovation.2007.08.002
Czerniewicz, L.; Brown, C. 2009. A study of the relationship between institutional policy, organisational culture and e-learning use in four South African universities, Computers & Education 53(1): 121–131. https://doi.org/10.1016/j.compedu.2009.01.006
Darroch, J. 2005. Knowledge management, innovation and firm performance, Journal of Knowledge Management 9(3): 101–115. https://doi.org/10.1108/13673270510602809
Davenport, T. H.; Pruzak, L. 2000. Working knowledge: How organizations manage what they know. Harvard: Harvard Business Press.
Davila, T.; Epstein, M.; Shelton, R. 2012. Making innovation work: How to manage it, measure it, and profit from it. Upper Saddle River: FT Press.
Donate, M. J.; Sánchez de Pablo, J. D. 2015. The role of knowledge-oriented leadership in knowledge management practices and innovation, Journal of Business Research 68(2): 360–370. https://doi.org/10.1016/j.jbusres.2014.06.022
Du Plessis, M. 2007. The role of knowledge management in innovation, Journal of Knowledge Management 11(4): 20–29. https://doi.org/10.1108/13673270710762684
Easterby-Smith, M.; Lyles, M. 2003. Re-reading “Organizational learning”: Selective memory, forgetting, and adaptation, The Academy of Management Executive 17(2): 51–55.
Eckl, V. C. 2012. Barriers of knowledge transfer, in Proceedings of the 2012 DRUID Summer Conference, 2012, Copenhagen, Denmark.
Eveleens, C. 2010. Innovation management; a literature review of innovation process models and their implications [online], [cited 10 May 2017]. Available from Internet: https://s3.amazonaws.com/academia.edu.documents.
Ferraris, A.; Santoro, G.; Dezi, L. 2017. How MNC’s subsidiaries may improve their innovative performance? The role of external sources and knowledge management capabilities, Journal of Knowledge Management 21(3): 540–552. https://doi.org/10.1108/JKM-09-2016-0411
Ferreira, F. A. F.; Ferreira, J. J. M.; Fernandes, C. I. M. A. S.; Meidutė-Kavaliauskienė, I.; Jalali, M. S. 2017. Enhancing knowledge and strategic planning of bank customer loyalty using fuzzy cognitive maps, Technological and Economic Development of Economy 23(6): 860–876. http://dx.doi.org/10.3846/20294913.2016.1213200
Fornell, C.; Larcker, D. F. 1981. Evaluating structural equation models with unobservable variables and measurement error, Journal of Marketing Research 18(1): 39–50. https://doi.org/10.2307/3151312
Fraj, E.; Matute, J.; Melero, I. 2015. Environmental strategies and organizational competitiveness in the hotel industry: The role of learning and innovation as determinants of environmental success, Tourism Management 46: 30–42. https://doi.org/10.1016/j.tourman.2014.05.009
Ghosh, S.; Amaya, L.; Skibniewski, M. J. 2012. Identifying areas of knowledge governance for successful projects, Journal of Civil Engineering and Management 18(4): 495–504. https://doi.org/10.3846/13923730.2012.700642
Ginevičius, T.; Kaklauskas, A.; Kazokaitis, P. 2011. Knowledge model for integrated construction project management, Business: Theory and Practice 12(2): 162–174. https://doi.org/10.3846/btp.2011.17
Hair, J. F.; Black, W. C.; Babin, B. J.; Anderson, R. E. 2010. Multivariate data analysis. Upper Saddle River: Prentice-Hall.
Hair, J.; Hult, T.; Ringle, C.; Sarstedt, M. 2013. A primer on partial least squares structural equation modeling (PLS-SEM). New York: Sage Publications.
Hogan, S. J.; Coote, L. V. 2014. Organizational culture, innovation, and performance: A test of Schein’s model, Journal of Business Research 67(8): 1609–1621. https://doi.org/10.1016/j.jbusres.2013.09.007
Hoła, B.; Sawicki, M.; Skibniewski, M. 2015. An IT model of a Knowledge Map which supports management in small and medium-sized companies using selected Polish construction enterprises as an example, Journal of Civil Engineering and Management 21(8): 1014–1026. https://doi.org/10.3846/13923730.2015.1030865
IKCO. 2012. Iran Khodro company.
Jansen, J. J.; Van Den Bosch, F. A.; Volberda, H. W. 2006. Exploratory innovation, exploitative innovation, and performance: Effects of organizational antecedents and environmental moderators, Management Science 52(11): 1661–1674. https://doi.org/10.1287/mnsc.1060.0576
Jennex, M. E. 2007. Knowledge management in modern organizations. IGI Global. https://doi.org/10.4018/978-1-59904-261-9
Kaklauskas, A.; Kanapeckiene, L. 2005. Knowledge management and “BRITA in PuBs” project, Technological and Economic Development of Economy 11(2): 78–86.
Kaklauskas, A.; Tupenaite, L.; Kanapeckiene, L.; Naimaviciene, J. 2013a. Knowledge-based model for
standard housing renovation, Procedia Engineering 57: 497–503. https://doi.org/10.1016/j.proeng.2013.04.064
Kaklauskas, A.; Zavadskas, E. K.; Banaitis, A.; Banaitienė, N.; Kanapeckienė, L. 2012. Knowledge management in construction project management, Chapter 1, in V. M. Petrova (Ed.). Advances in engineering research. Vol. 3. New York: Nova Science Publishers, 1–90.
Kaklauskas, A.; Zavadskas, E. K.; Banaitis, A.; Banaitienė, N.; Kanapeckienė, L. 2013b. Knowledge management in construction project management, in N. Draskovic, T. Vukasinov (Eds.). Knowledge management: technology, applications and impact. New York: Nova Science Publishers, 91–188.
Kanapeckiene, L.; Kaklauskas, A.; Zavadskas, E. K.; Seniut, M. 2010. Integrated knowledge management model and system for construction projects, Engineering Applications of Artificial Intelligence 23(7): 1200–1215. https://doi.org/10.1016/j.engappai.2010.01.030
Kotter, J. P. 2008. Corporate culture and performance. New York: The Free Press.
Krejcie, R. V.; Morgan, D. W. 1970. Determining sample size for research activities, Educational and Psychological Measurement 30: 607–610.
Lawson, S. 2002. Knowledge management assessment instrument. Nova Southeastern University.
Lee, Y.-T. 2012. Global leadership in multicultural teams, in J. Canals (Ed.). Leadership development for a global world: The role of companies and business schools. The Palgrave Macmillan IESE Business Collection. https://doi.org/10.1057/9781137283320_9
Liao, S.-H.; Chang, W.-J.; Hu, D.-C.; Yueh, Y.-L. 2012. Relationships among organizational culture, knowledge acquisition, organizational learning, and organizational innovation in Taiwan’s banking and insurance industries, The International Journal of Human Resource Management 23(1): 52–70. https://doi.org/10.1080/09585192.2011.599947
Liao, S.-H.; Wu, C.-c. 2010. System perspective of knowledge management, organizational learning, and organizational innovation, Expert Systems with Applications 37(2): 1096–1103. https://doi.org/10.1016/j.eswa.2009.06.109
Lin, H.-F. 2008. Empirically testing innovation characteristics and organizational learning capabilities in e-business implementation success, Internet Research 18(1): 60–78. https://doi.org/10.1108/10662240810849595
Lin, Y.-C. 2014. Construction 3D BIM-based knowledge management system: a case study, Journal of Civil Engineering and Management 20(2): 186–200. https://doi.org/10.3846/13923730.2013.801887
Lopes, C. M.; Scavarda, A.; Hofmeister, L. F.; Thomé, A. M. T.; Vaccaro, G. L. R. 2017. An analysis of the interplay between organizational sustainability, knowledge management, and open innovation, Journal of Cleaner Production 142: 476–488. https://doi.org/10.1016/j.jclepro.2016.10.083
Moustaghfir, K.; Schiuma, G. 2013. Knowledge, learning, and innovation: research and perspectives, Journal of Knowledge Management 17(4): 495–510. https://doi.org/10.1108/JKM-04-2013-0141
Moynihan, D. P.; Landuyt, N. 2009. How do public organizations learn? Bridging cultural and structural perspectives, Public Administration Review 69(6): 1097–1105. https://doi.org/10.1111/j.1540-6210.2009.02067.x
Mueller, J. 2012. The interactive relationship of corporate culture and knowledge management: a review, Review of Managerial Science 6(2): 183–201. https://doi.org/10.1007/s11846-010-0060-3
Obeidat, B. Y.; Tarhini, A.; Masa’deh, R.; Aqqad, N. O. 2017. The impact of intellectual capital on innovation via the mediating role of knowledge management: a structural equation modelling approach, International Journal of Knowledge Management Studies 8(3–4): 273–298. https://doi.org/10.1504/IJKMS.2017.087071
Pasher, E.; Ronen, T. 2011. The complete guide to knowledge management: A strategic plan to leverage your company’s intellectual capital. New York: John Wiley & Sons. https://doi.org/10.1002/9781118983782
Ringle, C. M.; Wende, S.; Will, A. 2005. Smart PLS Version 2.0 M3 (Version 2.0 M3). Hamburg: University of Hamburg.
Sanz-Valle, R.; Naranjo-Valencia, J. C.; Jiménez-Jiménez, D.; Perez-Caballero, L. 2011. Linking organizational learning with technical innovation and organizational culture, Journal of Knowledge Management 15(6): 997–1015. https://doi.org/10.1108/13673271111179334
Scarbrough, H. 2003. Knowledge management, HRM and the innovation process, International Journal of Manpower 24(5): 501–516. https://doi.org/10.1108/01437720310491053
Schein, E. H. 1996. Three cultures of management: the key to organizational learning, Sloan Management Review 38: 9–20.
Shenbagavalli, R. 2013. A strategy to manage the NPAs of public sector banks, International Journal of Management (IJM) 4(3): 1–7.
Smit, H. T.; Trigeorgis, L. 2012. Strategic investment: Real options and games. Princeton: Princeton University Press.
Taleghani, M.; Talebian, Z. 2013. Investigation of relationship between knowledge management and organizational culture in the National bank branches of Mazandaran province, Iran, Journal of Basic and Applied Scientific Research 3(3): 532–536.
Tohidi, H.; Jabbari, M. M. 2012. Main factors of organizational learning capabilities on product innovation performance, Procedia Technology 1: 544–547. https://doi.org/10.1016/j.protcy.2012.02.118
Tserng, H. P.; Lee, M.-H.; Hsieh, S.-H.; Liu, H.-L. 2016. The measurement factor of employee participation for Knowledge Management System in engineering consulting firms, Journal of Civil Engineering and Management 22(2): 157–167. https://doi.org/10.3846/13923730.2014.897963
Valencia, J. C. N.; Valle, R. S.; Jiménez, D. J. 2010. Organizational culture as determinant of product innovation, European Journal of Innovation Management 13(4): 466–480. https://doi.org/10.1108/14601061011086294
Vieira, D. 2013. Interorganizational learning in the Brazilian bioethanol industry, in Management Knowledge and Learning International Conference, 19–21 June 2013, Zadar, Croatia.
Wang, C. L.; Rafiq, M. 2009. Organizational diversity and shared vision: resolving the paradox of exploratory and exploitative learning, European Journal of Innovation Management 12(1): 86–101. https://doi.org/10.1108/14601060910928184
Zavadskas, E. K.; Kaklauskas, A.; Banaitis, A. 2010. Real estate’s knowledge and device-based decision support system, International Journal of Strategic Property Management 14(3): 271–282. https://doi.org/10.3846/ijspm.2010.20