Catherine L Wang, Pervaiz K Ahmed and Mohammed Rafiq (2008) Knowledge management orientation: Construct development and empirical validation. European Journal of Information Systems, 17 (3). pp. 219-235. ISSN 0960-085X
Full text access: Open
We introduce the concept of knowledge management orientation (KMO) – the degree to which a firm demonstrates behaviors of organized and systematic knowledge management (KM) implementation. Based on an extensive review of the KM literature, the KMO concept is operationalized as a second-order latent construct consisting of four main component factors: organizational memory, knowledge sharing, knowledge absorption, and knowledge receptivity. We then validate the KMO construct using data from 213 United Kingdom firms. The findings provide strong support for the unidimensionality, reliability, discriminant validity, and convergent validity of the KMO construct. We also test the impact of KMO on firm performance and find a significant, positive relationship, providing support for the predictive validity of the KMO construct. Our findings suggest that KMO is an effective measure of the firm-level KM-orientedbehaviors. The theoretical, methodological, and practical implications of the KMO construct are also discussed.
This is a Published version This version's date is: 2008 This item is peer reviewed
https://repository.royalholloway.ac.uk/items/d4dd71a5-ee4d-1e75-c78f-10307859f3a5/1/
Deposited by Al Dean (ZSRA118) on 09-Mar-2010 in Royal Holloway Research Online.Last modified on 07-Jan-2011
(C) 2008 Palgrave, whose permission to mount this version for private study and research is acknowledged. The repository version is the author's final draft.
ALAVI M and LEIDNER D (2001). Knowledge management and knowledge management systems conceptual foundations and research issues. MIS Quarterly, 25 (1), 107-136.
ANDERSON JC and GERBING DW (1982) Some methods for respecifying measurement models to obtain unidimensional construct measurement. Journal of Marketing Research 19 (4), 453-460.
ANDERSON JC and GERBING DW (1988) Structural equation modeling in practice: a review and recommended two-step approach. Psychological Bulletin 103 (3), 411-423.
ARGYRIS C and SCHÖN DA (1978) Organizational learning; A theory of action perspective. Reading, MA: Addision-Wesley.
ARMSTRONG JS and OVERTON TS (1977) Estimating nonresponse bias in mail surveys. Journal of Marketing Research 14(3), 396-402.
BAGOZZI RP and YI Y (1988) On the evaluation of structural equation models. Journal of the Academy of Marketing Science 14(1), 33-46.
BAGOZZI RP and YI Y (1990) Assessing method variance in multitrait-multimethod matrices: The case of self-reported affect and perceptions at work. Journal of Applied Psychology 75, 547-560.
BAGOZZI RP, YI Y and PHILLIPS LW (1991) Assessing construct validity in organizational research. Administrative Science Quarterly 36(3), 421-458.
BARNEY JB (1991) Firm resources and sustained competitive advantage. Journal of Management 17, 99-120.
BARNEY JB and MACKEY TB (2005) Testing resource-based theory. In Ketchen D. J. And D. D. Bergh (Eds.) Research methodology in strategy and management, Volume 2, pp1-13. New York: Elsevier,
BECKER M (2001) Managing dispersed knowledge: Organizational problems, managerial strategies, and their effectiveness. Journal of Management Studies 38(7), 1037-1051.
BENTLER PM (1992) EQS structural equations program manual. Los Angles: BMDP Statistical Software.
BIERLY P and CHAKRABARTI A (1996) Generic knowledge strategies in the US pharmaceutical industry. Strategic Management Journal 17 (Winter Special Issue),123- 135.
BOCK GW, ZMUD RW, KIM YG and LEE JN (2005). Behavioral intention formation in knowledge sharing: Examining the roles of extrinsic motivators, social-psychological forces, and organizational climate. MIS Quarterly 29 (1), 87-111.
BROWN JS and DUGUID P (1998) Organizing knowledge. California Management Review 40 (3), 90-111.
BROWN MW and CUDECK R (1993) Alternative ways of assessing model fit. In: Bollen KA. and Long JS (Eds.), Testing structural equation models, pp136-162. Newbury Park, CL: Sage
BYRNE BM (2001) Structural equation modeling with Amos: Basic concepts, applications and programming. Lawrence Erlbaum Associates, Publishers, New Jersey.
CABRERA A and CABRERA EF (2002) Knowledge-sharing dilemmas. Organization Studies 23/5, 687-710.
CHI T (1994) Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure. Strategic Management Journal 15, 271- 290.
CHIN WW (1998) Issues and opinion on structural equation modeling. MIS Quarterly 22 (1), 7-16.
CHURCHILL GA (1979) A paradigm for developing better measures of marketing constructs. Journal of Marketing Research 16 (1), 63-74.
COHEN MD and LEVINTHAL DA (1990) Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly 35(1), 128-152.
CRAMPTON SM and WAGNER JA (1994). Percept-percept inflation in microorganizational research: An investigation of prevalence and effect. Journal of Applied Psychology 79, 67-76.
CRESWELL JW (2003) Research design: qualitative, quantitative, and mixed methods approaches. Sage Publications, London.
CROSS R and BAIRD L (2000) Technology is not enough: improving performance by building organizational memory. Sloan Management Review 41(3), 69-78.
DARROCH J and MCNAUGHTON R (2003) Beyond market orientation: Knowledge management and the innovativeness of New Zealand firms. European Journal of Marketing 37, 572-593.
DAVENPORT TH and PRUSAK L (2000) Working knowledge: how organizations manage what they know. Boston: Harvard Business School Press.
DAVENPORT TH, DELONG DW and BEERS MC (1998) Successful knowledge management projects. Sloan Management Review 39 (2), 43-57.
DAY GS (1991) Learning about markets. Marketing Science Institute Report, No.91- 117, Cambridge, MA: Marketing Science Institute.
DILLMAN DA (2000) Mail and internet surveys: The tailored design method 2nd Edition. New York: John Wiley & Sons.
EARL M (2001) Knowledge management strategies: toward a taxonomy. Journal of Management Information Systems 18 (1), 215-233.
FORNELL C and LARCKER DW (1981) Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18, 39-50.
GERBING DW and ANDERSON JC (1988) An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing Research 25,186-192.
GODFREY PC and HILL CW (1995) The problem of unobservables in strategic management research. Strategic Management Journal 16, 519-533.
GRANT RM (1996) Towards a knowledge-based theory of the firm. Strategic Management Journal 17, 109-122.
GRAY PH (2001) The impact of knowledge repositories on power and control in the workplace. Information Technology & People 14 (4), 369-384.
GUPTA AK and GOVINDARAJAN V (2000). Knowledge management's social dimension: Lessons from Nucor Steel. Sloan Management Review 42, 71-80.
HAMBRICK DC, GELETKANYCZ MA and FREDERICKSON JW (1993). Top management commitment to the status quo: some tests of its determinants. Strategic Management Journal 14, 401-418.
HAMEL G and PRAHALAD CK (1994) Competing for the future. Boston, MA: Harvard Business School Press.
HANSEN MT, NOHRIA N and TIERNEY T (1999) What's your strategy for managing knowledge? Harvard Business Review 77 (2), 106-116.
HEDBERG B (1981) How organizations learn and unlearn. In Nystrom, C. and Starbuck, W. Handbook of organizational design, pp. 8-27. London, Oxford University Press.
HOLTSHOUSE D (1998) Knowledge research issues. California Management Review, 40(3), 277-280.
HU LT and BENTLER PM (1999) Cutoff criteria for fit indexes in covariance structure analysis: conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6, 1-55.
HUANG JC, NEWELL S and PAN SL (2001). The process of global knowledge integration: A case study of a multinational investment bank's. European Journal of Information Systems, 10(3), 161.
HUBER GP (1991) Organizational learning: The contributing processes and the literatures. Organization Science 2, 88-115.
HUBER GP and POWER D (1985) Retrospective reports of strategic-level managers: Guidelines for increasing their accuracy. Strategic Management Journal 6(2), 171-180.
HULT GTM (2003) An integration of thoughts on knowledge management. Decision Sciences 34 (2), 189-196.
HULT GTM, KETCHEN DJ and SLATER SF (2004) Information processing, knowledge development, and strategic supply chain performance. Academy of Management Journal 47, 241-253.
JAWORSKI BJ and KOHLI AK (1993) Market orientation: antecedents and consequences. Journal of Marketing 57 (3), 53-70.
JÖRESKOG KG, SÖRBOM D, DU TOIT S and DU TOIT M (1999) LISREL 8: New Statistical Features. Chicago: Scientific Software International.
KOGUT B and ZANDER U (1992) Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science 3 (3), 383-397.
KOHLI AK, JAWORSKI BJ and KUMAR A (1993) MARKOR: a measure of market orientation. Journal of Marketing Research 30, 467-477.
LEE KC, LEE S, and KANG IW (2005) KMPI: measuring knowledge management performance. Information & Management 42, 469-482.
LEONARD-BARTON D (1992) Core capabilities and core rigidities: a paradox in managing new product development. Strategic Management Journal 13 (Summer Special Issue), 111-125.
LEWIS BR, TEMPLETON GF and BYRD TA (2005). A methodology for construct development in MIS research. European Journal of Information Systems, 14(4), 388- 400.
MACCALLUM RC (1986) Specification searches in covariance structure modeling. Psychological Bulletin 100(1), 107-120.
MADHAVAN R and GROVER R (1998) From embedded knowledge to embodied knowledge: new product development as knowledge management. Journal of Marketing 62(4), 1-12.
MARCH JG and OLSEN JP (1976) Ambiguity and choice in organizations. Oslo: Universitets-forlaget.
MARSH HW and HOCEVAR D (1985) Application of the confirmatory factor analysis to the study of self-concept: first and second order factor models and their invariance across groups. Psychological Bulletin 97 (3), 562-582.
MCDERMOTT R (1999) Why information technology inspired but cannot deliver knowledge management. California Management Review 41 (4), 103-117.
MCGILL ME, SLOCUM JW and LEI D (1993) Management practices in learning organizations. Organizational Dynamics 22, 5-17.
MENTZER JT. FLINT DJ and KENT JL (1999) Developing a logistics service quality scale. Journal of Business Logistics 20(1), 9-32.
MOM TJM, VAN DEN BOSCH FAJ and VOLBERDA HW (2007) Investigating managers' exploration and exploitation activities: The influence of top-down, bottom-up, and horizontal knowledge flows. Journal of Management Studies 44, 910-931.
NEMETH CJ (1997) Managing innovation: when less is more. California Management Review 40(1), 59-74.
NETEMEYER RG, BEARDEN WO and SHARMA S (2003) Scaling procedures: issues and applications. Sage Publications, London.
NEWELL S and GALLIERS RD (2006) Facilitating - or inhibiting - knowing in practice. European Journal of Information Systems 15, 441-445.
NEWELL S, SCARBROUGH H and SWAN J (2001) From global knowledge management to internal electronic fences: contradictory outcomes of intranet development. British Journal of Management 12(12), 97-111.
NONAKA I (1994) A dynamic theory of organizational knowledge creation. OrganizationScience 5 (1), 14-37.
NONAKA I and TAKEUCHI H (1995) Knowledge-creating company: how Japanesecompanies create the dynamics of innovation. Oxford University Press, Oxford.NUNNALLY JC (1978) Psychometric theory, 2nd Edition. McGraw-Hill Inc., New York.
O'DELL C, WIIG K and ODEM P (1999) Benchmarking unveils emerging knowledgemanagement strategies. Benchmarking: An International Journal 6(3), 202-211.
O'KEEFE B and PAUL RJ (2000) Editorial. European Journal of Information Systems,9, 1-2.
PODSAKOFF PM and ORGAN DW (1986) Self-reports in organizational research:Problems and prospects. Journal of Management 12, 531-544.
PODSAKOFF PM, MACKENZIE SB, LEE J and PODSAKOFF N (2003) Commonmethod biases in behavioral research: A critical review of the literature andrecommended remedies. Journal of Applied Psychology 88, 879-903.
POPPER M and LIPSHITZ R (1998) Organizational learning mechanisms: a structuraland cultural approach to organizational learning. Journal of Applied Behavioral Science 34 (2), 161-179.
POUDER R and ST. JOHN CH (1996) Hot spots and blind spots: geographical clusters of firms and innovation. Academy of Management Review 21 (4), 1192-1225.
PREMKUMAR G and KING WR (1994) Organizational characteristics and information systems planning: an empirical study. Information Systems Research 5 (2), 75-109.
PRIETO IM and EASTERBY-SMITH M (2006). Dynamic capabilities and the role of organizational knowledge: An exploration. European Journal of Information Systems, 15(5), 500-510.
RANDALL D, HUGHES J, O'BRIEN J, ROUNCEFIELD M and TOLMIE P (2001) ‘Memories are made of this': Explicating organizational knowledge and memory. European Journal of Information Systems 10: 113-121.
RAYKOV T and WIDAMAN KF (1995) Issues in structural equation modeling research. Structural Equation Modeling: A Multidisciplinary Journal 2, 289-318.
ROBERTSON M, SWAN J and NEWELL S (1996) The Role of Networks in the Diffusion of Technological Innovation. Journal of Management Studies 33, 335-361.
SABHERWAL R and BECERRA-FERNANDEZ I (2003) An empirical study of the effect of knowledge management processes at individual, group, and organizational levels. Decision Sciences 34(2), 225-260.
SENGE PM (1990) The fifth discipline: The art and practice of the learning organization. New York: Doubleday.
SIMON HA (1991) Bounded rationality and organizational learning. Organization Science 2(1):125-134.
SINKULA, J. M., BAKER, W. E. AND NOORDEWIER, T. (1997) A framework for market-based organizational learning: Linking values, knowledge, and behavior. Journal of the Academy of Marketing Science 25 (4), 305-318.
SPECTOR PE (1987) Method variance as an artifact in self-reported affect and perceptions at work: Myth or significant problem? Journal of Applied Psychology 72, 438-443.
SPENDER JC and GRANT RM (1996) Knowledge and the firm: overview. Strategic Management Journal 17 (Special Issue), 5-9.
SWAN J and SCARBROUGH H (2001) Editorial: Knowledge management: Concepts and controversies. Journal of Management Studies 38, 913-921.
SZULANSKI G (1996) Exploring internal stickiness: Impediments to the transfer of best practices within the firm. Strategic Management Journal 17(Winter Special Issue), 27-43.
TEPPER BJ and TEPPER K (1993) The effects of method variance within measures. The Journal of Psychology 127(3), 293-302.
TSAI W (2002) Social structure of "coopetition" within a multiunit organization: coordination, competition, and intraorganizational knowledge sharing. Organization Science 13(2), 179-190.
VAN DEN BOSCH F, VOLBERDA H and DE BOER M (1999) Coevolution of firm absorptive capacity and knowledge environment: organizational forms and combinative capabilities. Organization Science 10 (5), 551-568.
VORHIES DW and MORGAN NA (2005) Benchmarking marketing capabilities for sustainable competitive advantage. Journal of Marketing 69 (1), 80-94.
WALSH JP and UNGSON GR (1991) Organizational memory. Academy of Management Review 16 (1), 57-91.
WARD TB (2004) Cognition, creativity, and entrepreneurship. Journal of Business Venturing 19,173-188.
WERNERFELT B (1984) A resource-based view of the firm. Strategic Management Journal 5, 795-815.
WEST SG, FINCH JF and CURRAN PJ (1995) Structural equation models with nonnormal variables: problems and remedies. In Hoyle, R. H. (Eds), Structural Equation Modeling: Concepts, Issues, and Applications, pp56-75. Sage Publications, London.
WIJNHOVEN F (1999) Development scenarios for organizational memory information systems. Journal of Management Information Systems 16 (1), 121-146.
WIKLUND J and SHEPHERD D (2003) Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses. Strategic Management Journal 24, 1307-1314.
WILLIAMS LJ, COTE JA and BUCKLEY MR (1989) Lack of method variance in selfreport affect and perceptions at work: Reality or artifact? Journal of Applied Psychology74, 462-468.