Linking Knowledge Processes with Firm Performance: Organizational Culture
December 16, 2011 Editor 0
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 United States 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.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.
Go to Source
- Translating data into knowledge
- Creative Cultures Fuel Growth: Martin Agency CEO Matt Williams shares nine simple rules for keeping corporate cultures creative.
- What Makes Someone an Engaging Leader
- Artificial intelligence: summoning the demon
- The Chief Innovation Officer’s 100-Day Plan
- Knowledge Integration in Distributed Product Development
Categories: Public Sector
Subscribe to our stories
- The Strategic Role of Design in Driving Digital Innovation June 10, 2021
- Correction to: Hybrid mosquitoes? Evidence from rural Tanzania on how local communities conceptualize and respond to modified mosquitoes as a tool for malaria control June 10, 2021
- BRIEF FOCUS: Optimal spacing for groundnuts in smallholder farming systems June 9, 2021
- COVID-19 pandemic: impacts on the achievements of Sustainable Development Goals in Africa June 9, 2021
- Explicit knowledge networks and their relationship with productivity in SMEs May 30, 2021