4.1. Antecedents of knowledge management strategy
The results are presented in Table 3. In model 1, the results show that technological turbulence exerts a significant and positive effect on knowledge management strategy (p < 0.05). Environmental turbulence and learning orientation have no effect on knowledge management strategy. Thus, hypothesis 6 receives solid support and hypotheses 4 and 5 receive no support from the analysis.
4.2. Contingent effects of antecedents of knowledge management strategy on a firm's strategic performance
In Table 3, the results suggest that knowledge management strategy is significantly related to a firm's strategic performance (p < 0.05). Learning orientation has a moderating effect on the positive relationship between knowledge management strategy and strategic performance (p < 0.001), while environmental and technological turbulences do not exert contingent effects on long-term corporate growth. Thus, hypotheses 1 and 4a receive solid support and hypotheses 5a and 6a receive negligible support.
4.3. Long term corporate growth
This study also examined the effects of knowledge management strategy and firm strategic performance on long-term corporate growth. Hypothesis 2 predicts a positive effect of knowledge management strategy on strategic performance. Results support this prediction (p < 0.05). Strategic performance has been shown to exert a significant effect on corporate growth (P < 0.001). Thus, hypothesis 3 receives solid support from the analysis in model 3.
5. Discussion
Jump to section
1. Introduction
2. Theoretical framework and hypotheses
3. Methods
4. Results
5. Discussion
6. Conclusion
5.1. Learning orientation, environmental and technological turbulence, and knowledge management strategy
In the first regression model, the results offer significant support for hypothesis 6, which postulated a positive connection between technological turbulence and knowledge management strategy. However, the results presented in Table 3 offer little support for hypotheses 4 and 5, which predicted a positive relationship between learning orientation and environmental turbulence and knowledge management strategy. Unexpectedly, the results show a negative coefficient for the link between environmental turbulence and knowledge management strategy. One of the plausible explanations involves the risk the turbulent environment brings. Moorman and Miner (1997) observed that building a valuable organisational memory system is harder under the condition of environmental turbulence, which implies that environmental turbulence may be an obstacle to a firm's use of knowledge management strategy.
5.2. Knowledge management strategy and strategic performance
The results of path analysis presented in Table 3 show a solid positive association between knowledge management strategy and strategic performance. Regarding the contingent effects of learning orientation, environmental and technological turbulence on strategic performance, the results indicate a significant moderating effect of learning orientation on strategic performance, while environmental and technological turbulence were shown to have no effect on the positive relationship between knowledge management strategy and strategic performance. Unexpectedly, technological turbulence has been shown to have a negative relationship with strategic performance. It is not entirely clear why environmental and technological turbulences do not moderate the relationship between knowledge management strategy and strategic performance, though there are some plausible explanations. First, the relatively small sample size may fail to detect all solid contingent effects in a model (Arnold assertion that being highly competito1982). Second, new product development has been a central issue in high technology firms. Turbulent market and technology environments do not have interacting effects on new product financial performance (Moorman and Miner 1997). In the new product development context, the results of this study are consistent with the findings in prior research. It was surprising to find the negligible negative moderating effect of technological turbulence. The results show that technological turbulence stimulates a firm's use of knowledge management strategy, but given continuous and significant investment in advanced technologies, the firm loses its low cost advantage (Porter 1985). Pursuing advanced technology in a turbulent environment implies a firm's high level of competitor-oriented posture in a high technology industry. The unexpected finding of the negative moderating effect of technological turbulence is consistent with Griffith and Rust's (1997)r-oriented can have a deleterious effect on the bottom line.
6. Conclusion
Jump to section
1. Introduction
2. Theoretical framework and hypotheses
3. Methods
4. Results
5. Discussion
6. Conclusion
6.1. Managerial implications
The findings of this study offer several insights for managers of high technology firms. First, the results support the notion that managers and firms need to implement knowledge management strategy to face the challenges due to technological turbulence. They should create a facilitating culture for the adoption of knowledge management strategy in an effort to compete successfully in the highly competitive industry. Due to technological uncertainty, managers need to modify the firms’ knowledge management strategy to ensure a fit between new products and required technology.
Second, the research framework in this study sheds light on why firms should focus on the use of knowledge management strategy to enhance their strategic performance and long-term corporate growth. Managers of high technology firms may want to consider various knowledge management strategies to survive the turbulent environment. The results suggest that managers may want to place emphasis on knowledge sharing by allocating substantial financial resources, developing a large variety of repositories which are easily accessible to all employees, increasing the rate of updating repositories due to employees’ contributions, and increasing the firms’ overall commitment to sharing and innovation. This suggests that the use of knowledge management strategy is of paramount importance in enhancing a firm's strategic performance and long-term corporate growth. These findings should be useful to managers of high technology firms.
Third, the findings underscore the contingent role of learning orientation on a firm's strategic performance. It should be noted, however, that technological turbulence has been shown to have a negligible negative interacting effect on strategic performance. A turbulent technological environment can bring a firm both creativity and risks. Since creative activity produces chaos, it must be balanced by a stable and hierarchical organisation (Nonaka 1994). Thus, this finding informs top management of the negative contingent role of technological turbulence on strategic performance. In the intensively competitive high technology industry, managers must become increasingly savvy about the contingent effects of learning orientation on strategic performance.
Finally, a firm's strategic performance exerts a significant impact on long-term corporate growth. This solid support for the direct effect of strategic performance has a potentially important implication for practice. Managers of high technology firms may want to stress the implementation of knowledge management strategy within the organisation. Four generic knowledge strategies were offered to help firms allocate their resources: leveraging, expanding, appropriating, and probing (Krogh et al. 2001). In particular, tacit knowledge is crucial for successful knowledge management. Great efforts are necessary to promote an environment for tacit knowledge sharing between individuals through the socialisation process (Nonaka 1994). In this sense, managers should implement effective knowledge management strategies to harness organisational intelligence and to improve strategic performance in an effort to enhance long-term corporate growth.
6.2. Limitations and further research
The findings of this study should be interpreted in the light of its inherent limitations. First, regional sampling does limit the generality of the results. Although Shanghai is the biggest city in China, the high technology firms of this region might not represent the industry in China. It may be instructive for future research to extend to other regions or other transitional economies. Second, this study does not control for the firm's physical characteristics such as firm age and size, which could affect a firm's adoption of knowledge management strategy. Thus, future research should control for these variables. Third, the theoretical model excludes some potentially important factors. It seems plausible that the firm's innovation capability may be a significant factor boosting its strategic performance and long-term corporate growth. It would be informative to examine whether these findings would hold in a creative context in which knowledge innovation is largely presented. Fourth and finally, in this study the sample was taken from the high technology industry because the growing importance of knowledge management strategy on strategic performance and long-term corporate growth in this intensively competitive industry. However, the generalisation of this study's results is constrained by the high technology setting where high technology firms face a more dynamic environment and position themselves for stronger learning orientation. Future studies should address this issue in other industries.
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