Abstract
Purpose – this article aims to evaluate the influence of knowledge oriented leadership on knowledge management processes and the influence of those processes on the performance of the Middle Eastern audit and consulting companies. Research methodology – analysis of scientific literature, structural equation modelling and expert evaluation (structured questionnaire) were used in order to create hypotheses and research model, to collect data from the audit and consulting companies’ experts and to test research model and related hypotheses. Findings – the results of this research supported eight out of ten suggested hypotheses. Empirical evidence shows that leadership has a positive impact on knowledge acquisition, storage, and sharing processes in the Middle Eastern audit and consulting companies and knowledge management processes (creation, acquisition, sharing, storage and application) have positive influence on organizational performance. Research limitations – conducting the research in the Middle Eastern audit and consulting companies limits the possibility of generalizing the results to other types of businesses sectors as well as other geographical areas. Practical implications – conducted research results have practical value for audit and consulting companies as this study analyses the concept of knowledge oriented leadership and its impact on knowledge management processes and organizational performance. Originality/Value – this research investigated one of rare studies in the Middle East business sector, where the audit and consulting companies’ performance affected by the knowledge management processes was assessed considering knowledge oriented leadership as an influential factor that affects the knowledge management processes implementation.
Highlights
Organizations seeking to create uniqueness and market leadership tend to focus on employees with unique competencies and ability to apply competences, and on employee motivation
This study focuses on three main dimensions for measuring impact of knowledge management processes on organizational performance: knowledge strategy effectiveness, resources’ efficiency, and leadership
This study aims to assess two main relationships in the Middle Eastern audit and consulting sector: (1) the relationship between knowledge oriented leadership, which characterizes the independent variable, and the knowledge management processes, which consist of knowledge creation, acquisition, storage, sharing, and knowledge application, and which characterize the dependent variables; (2) the relationship between knowledge management processes and the organizations’ performance
Summary
Organizations seeking to create uniqueness and market leadership tend to focus on employees with unique competencies (knowledge, skills and abilities) and ability to apply competences, and on employee motivation. Many Middle Eastern audit and consulting companies face challenges in properly motivating the organization’s employees to apply their unique competence through knowledge management principles, the latter which create greater value for the organization itself, its employees, and its users. The concept of employees’ motivation and its role in efficiently applying knowledge management principles in a dynamic and uncertain environment with limited organization resources has been widely explored in knowledge management theories and implemented in practice through a processbased knowledge management cycle. Knowledge management can be defined as the purposeful and systematic management of processes, methods, and tools, making full use of the organisation’s knowledge potential to form goals, make efficient decisions, create and implement the uniqueness and value of the organization. This study will explore knowledge management processes such as creation, acquisition, storage, sharing and application
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