The performance implications of knowledge management and strategic alignment of MNC subsidiaries

Linking experimental culture, improvisation capability and firm’s performance: a theoretical view

Purpose

This study aims to investigate the causal relationships within an experimental culture of improvisation capability and firm performance, following the logic of “culture-capability-performance” and building on informal institution theory and dynamic capability theory.

Design/methodology/approach

Data was mainly collected via on-site questionnaires from firm managers, and 196 valid questionnaires were analyzed using structural equation modeling to test the relationship among experimental culture, improvisation capability and firms’ performance.

Findings

Trust and support had a positive impact on firm spontaneity, while the effect of action promotion and error tolerance was not significant. Action promotion, trust and support demonstrate substantial positive effects on the creativity of a firm. Both dimensions of improvisation capability positively and significantly influence a firm’s performance.

Research limitations/implications

The research respondents were firm managers. Cross-sectional data were used to analyze the model, which may cause common method variance. The research context was limited to China, and the generalizability of the results needs to be considered.

Practical implications

Firms can cultivate a culture of trust and support to enhance their spontaneity and improvisation capability. They can encourage cross-departmental communication, empower employees with autonomy in decision-making, provide appropriate resource support for employees’ decisions and use praise and reward incentives to spur further innovation achievements.

Originality/value

This study addresses the gaps in a firm’s improvisation capability within a Chinese market context by theoretically and empirically examining the role of experimental culture and assessing the relationship among each of the dimensions of improvisation capability in relation to firm performance identified in this study.

The differentiated role of organizational ambidexterity and organizational innovation in the subsidiary reverse knowledge transfer process

Purpose

This paper underscores how organizational ambidexterity and organizational innovation play differentiated roles in the subsidiary reverse knowledge transfers (RKT). The authors argue that both organizational ambidexterity and organizational innovation play a positive but differentiated role in the RKT process in that the former positively influences subsidiary knowledge creation, whereas the latter positively influences subsidiary knowledge transfers.

Design/methodology/approach

Data were collected from 289 foreign subsidiaries operating in Brazil. Hypotheses were developed and tested by applying partial least squares structural equation modeling.

Findings

The results supported the hypotheses and showed that organizational ambidexterity promotes knowledge creation, and that organizational innovation facilitates knowledge transfers.

Research limitations/implications

The paper offers implications with regard to drivers of subsidiary investments and actions of subsidiary managers vis-à-vis the subsidiary objectives of knowledge creation and/or transfers.

Originality/value

Showing the different roles of organizational ambidexterity and organizational innovation, this paper reveals some underlying mechanisms of the RKT process and contributes by explaining the competitive heterogeneity of subsidiaries, with impacts on subsidiary management’s evolutionary and resource dependence perspective.

Knowledge management, sharing and transfer in cross-national teams and the remote management of team members: the onsite-offshore phenomenon of service EMNEs

Purpose

This study examines how emerging market multinational enterprises operating in the service sector manage knowledge and team members in their overseas subsidiaries and what role expatriates play in their operations.

Design/methodology/approach

The authors use a multiple case study design and interview 20 senior managers representing 16 Indian IT firm's subsidiaries in Australia. The onsite-offshore concept and the SECI model are used to explain the knowledge management process.

Findings

The findings show that Indian IT firms mostly transfer knowledge from their headquarters in the parent country to their subsidiaries in the host country using the onsite-offshore model where work is divided and coordinated between team members situated between the two locations. Furthermore, the host country subsidiaries have limited independence in decision-making due to a forward, one-way diffusion of knowledge, thus limiting a two-way interaction between the HQ and the subsidiary for opportunities to create and exchange new knowledge.

Originality/value

The study is one of the few to investigate the onsite-offshore phenomenon in service-based emerging market multinational enterprises.

Linking knowledge development with sustainable supply chain performance: mediating effects of innovativeness, proactiveness and risk taking

Purpose

The current study provides new insights into the relationships between knowledge development (KD) and sustainable supply chain performance (SSCP) by exploring the mediating effects of entrepreneurial orientation (EO) in terms of innovativeness, proactiveness and risk taking.

Design/methodology/approach

Data were collected by questionnaire survey from 242 manufacturing organizations. Structural equation modeling (SEM) was used to test the hypotheses.

Findings

The results reveal that innovativeness and proactiveness have full mediating effects on the relationship between KD and SSCP. Though KD is negatively related to risk taking and has insignificant indirect effect on SSCP via risk taking, the mediating effect of risk taking remains moderate positive on the relationship between KD and SSCP.

Research limitations/implications

Given that the current study focuses on manufacturing sector, future research is needed for more comparative studies conducted in different sectors and cultural contexts. The negative link between KD and risk taking also warrants future investigation.

Practical implications

Organizations may reduce their level of risk taking due to the increase in KD. However, in order to enhance SSCP, risk taking is still needed as it mediates the relationship between KD and SSCP.

Originality/value

The mediating effects of innovativeness, proactiveness and risk taking on the relationship between KD and SSCP are unknown. Current study aims to address this gap.

Knowledge sharing behaviour of overqualified repatriates

Purpose

Organizations send their employees for international assignments so as to develop their international working experiences, their global knowledge and skills. These employees are then expected to return to their home countries (hereof known as repatriates) to share their newly gained knowledge or skills with their colleagues. This practice would benefit the organization's performance to some extent. Nonetheless, past literature had pointed out that many of such repatriates tend to leave their respective organizations as a result of not being able to fully utilize their newly acquired knowledge and skills, which led them to perceive that they were overqualified. This occurrence could lead to a loss of valuable knowledge for their organization. Aiming to address this issue at hand, the current study focuses on examining of the antecedents that could influence these repatriates' knowledge sharing behaviour.

Design/methodology/approach

This paper uses a research framework which was developed from three aspects of interest–perceived overqualification, affective commitment and the moderating effect of repatriation support practices on knowledge sharing behaviour of repatriates. Structural model analysis was carried out to assess 152 useable data which were collected from returning corporate repatriates in Malaysia. The SmartPLS 3.0 software was applied.

Findings

Repatriates with highly perceived overqualifications tend to exhibit low affective commitment. The impact of their perceived overqualification on knowledge sharing behaviour was fully mediated by their affective commitment. Repatriation support practice was found to strengthen the positive relationship between affective commitment and knowledge sharing behaviour.

Originality/value

The use of the relative deprivation theory showed that the outcome derived from this study could serve as an insight for organizations to understand how those repatriates' perception of overqualification influences their level of affective commitment, and subsequently, the extent to which they share knowledge upon returning.

Challenges for developing health-care knowledge in the digital age

Purpose

Health-care knowledge is dispersed among different departments in a health care organization, which makes it difficult at times to provide quality care services to patients. Therefore, this study aims to identify the main challenges in adopting health information technology (HIT).

Design/methodology/approach

This study surveyed 148 stakeholders in 4 key categories [patients, health-care providers, United Arab Emirates (UAE) citizens and foresight experts] to identify the challenges they face in adopting health care technologies. Responses were analyzed using exploratory (EFA) and confirmatory factor analysis (CFA).

Findings

EFA revealed four key latent factors predicting resistance to HIT adoption, namely, organizational strategy (ORGS); technical barriers; readiness for big data and the internet of things (IoT); and orientation (ORI). ORGS accounted for the greatest amount of variance. CFA indicated that readiness for big data and the IoT was only moderately correlated with HIT adoption, but the other three factors were strongly correlated. Specific items relating to cost, the effectiveness and usability of the technology and the organization were strongly correlated with HIT adoption. These results indicate that, in addition to financial considerations, effective HIT adoption requires ensuring that technologies will be easy to implement to ensure their long-term use.

Research limitations/implications

The results indicate that readiness for big data and the IoT-related infrastructure poses a challenge to HIT adoption in the UAE context. Respondents believed that the infrastructure of big data can be helpful in more efficiently storing and sharing health-care information. On the technological side, respondents felt that they may experience a steep learning curve. Regarding ORI, stakeholders expected many more such initiatives from health-care providers to make it more knowledge-specific and proactive.

Practical implications

This study has implications for knowledge management in the health -care sector for information technologies. The HIT can help firms in creating a knowledge eco-system, which is not possible in a dispersed knowledge environment. The utilization of the knowledge base that emerged from the practices and data can help the health care sector to set new standards of information flow and other clinical services such as monitoring the self-health condition. The HIT can further influence the actions of the pharmaceutical and medical device industry.

Originality/value

This paper highlights the challenges in HIT adoption and the most prominent factors. The conceptual model was empirically tested after the collection of primary data from the UAE using stakeholder theory.

Knowledge management processes and organizational performance: the mediating role of organizational learning

Purpose

The purpose of this paper is twofold. First, it aims to analyze the individual influence of different knowledge management practises (KMP) on firm performance. Second, it aims to analyze the mediating role of organizational learning (OL) between each KMP and performance.

Design/methodology/approach

A telephone-survey was applied in 2018 to the managers of 400 Spanish firms. The data retrieved was analyzed by using multiple regression analysis.

Findings

Knowledge generation (KG) and knowledge flow (KF) promote firm performance, while there is not a direct association between knowledge storage and performance. OL mediates the relationship between KG and performance, as well as between KF and performance.

Research limitations/implications

First, this research confirms that not all the KMP have a direct effect on firm performance, thus, future research would need to differentiate between different KMP. Second, this paper is pioneering in providing empirical evidence that OL mediates the KMP – performance relationship. Third, the empirical study was performed in a context non-researched yet by the literature considering KMP individually: Spain.

Practical implications

First, besides the results managers should focus their efforts in practises related to KG and application. Second, OL mediating suggests that managers should invest in managerial commitment to promote a shared culture, shared vision, open-mind to new ideas and a lot of dialogue.

Originality/value

This is the first study that investigates how KMP contribute to firm performance by incorporating the mediating impact of OL. The results will help organizations to identify the KMP improving the performance.