How to Improve Organizational Performance Through Learning and Knowledge?

Topics: Knowledge management, Human resource management, Management Pages: 30 (8700 words) Published: March 2, 2012
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How to improve organizational performance through learning and knowledge? Tsung-Hsien Kuo
Testing Center, Securities and Futures Institute, Taipei, Taiwan Abstract
Purpose – Through investigating the relationship among human resource management (HRM), organizational learning (OL), organizational innovation (OI), knowledge management capability (KMC), and organizational performance (OP), the aim of this paper was to find a way of improving organizational performance through learning and knowledge. Design/methodology/approach – A survey questionnaire was utilized to collect data. The population of this study included 659 employees from electronic industrial listed and over-the-counter listed technological companies in Taiwan (N ¼ 208, valid return rate 37.21 percent). Descriptive statistics, exploratory and confirmatory factor analysis, as well as structural equation modeling were used for data analysis. Findings – The results indicate that: HRM strategies result in better organizational learning, organizational innovation, and knowledge management capability, which ultimately contributes to achieving organizational performance; organizational learning improves organizational innovation and accumulates knowledge management capability; organizational innovation results in knowledge management capability development, which contributes to the establishment of organizational development; and technological companies should utilize organizational knowledge in order to enhance organizational performance. Research limitations/implications – The generalization of the present study is constrained by the existence of possible biases of the participants, and the regional-constrained data which were collected in and thus focused on Taiwan. Thus, the characteristics of the surveyed firms may be different from those in other areas or countries. Managerial implications are presented at the end of the work. Originality/value – This structure has rarely been explored and the findings are particularly useful for management in helping to set human resource management, learning, innovation, knowledge management and organizational performance in a bigger context. Keywords Human resource management, Organizational learning, Organizational innovation, Knowledge management capability, Organizational performance, Learning, Knowledge management, Taiwan Paper type Research paper

How to improve organizational performance 581

1. Introduction The technological revolution is accelerating a global transformation of the competitive environment. Consequently, traditional organizational management is no longer perceived as an appropriate strategy in current markets. As a result, businesses must sustain their competitive competence through uninterrupted enhancement and innovation. In fact, businesses need competitive strategies and innovation in order to survive and react to the challenges and opportunities in the modern competitive environment. Resistance to innovation is likely to result in a business’s downfall (Leavy, 1998). Globalization has not only opened international trade markets, which

International Journal of Manpower Vol. 32 No. 5/6, 2011 pp. 581-603 q Emerald Group Publishing Limited 0143-7720 DOI 10.1108/01437721111158215

IJM 32,5/6


brings numerous businesses opportunities; but this phenomenon also opened the door to numerous competitors. Thus, “employees” are no longer considered as “laborers” who only contribute their manpower. Gates (1999) suggests every person in the job market should be considered a knowledge worker in such a speed-emphasized era. In fact, human resource is considered the most important asset that any company must treasure. It is especially essential to implement a successful knowledge management environment in order to offer the resources at the right place at the right time to...
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