A Study on the Effect of Knowledge Services on Organizational Performances Based on the Concept of Balanced Scorecards for the Sustainable Growth of Firms: Evidence from South Korea

Abstract

This study clarified the effect of knowledge services (KSs) on organizational performances by introducing the concept of balanced scorecards (BSCs) for the sustainable growth of firms. Data were obtained from 246 firms by online survey and PLS-SEM was used as a data analysis method. Enhancement of knowledge absorptive capacity had a significantly positive effect on the improvement in decision-making quality. The improvement in decision-making quality was significantly relevant to organizational performances. Organizational performances were composed of non-financial and financial performances based on the framework of BSCs. A causal relationship between non-financial and financial performances was developed and suggested regarding non-financial performance as a leading indicator of financial performance. The perspectives of learning and growth and customers showed a statistical significance for the financial performance of firms. The customer aspect was more important than that of learning and growth when considering a relationship with financial performance. It was found that firms need to make an effort to improve their capabilities related to the perspectives of customers and learning and growth for their sustainable growth when they introduce external KSs as an open innovation strategy.