Knowledge-based dynamic capabilities and knowledge worker productivity in professional service firms The moderating role of organisational culture

Abstract

ABSTRACT This study investigates the relationships between two factors in knowledge management: knowledge-based dynamic capabilities and knowledge worker productivity. The study examines the moderating effect of organizational culture (i.e. adaptability, consistency, involvement and mission) on the relationship between the factors. We collected a unique survey data from 303 respondents from 41 research institutes and R&D centres in Australia and tested the model using structural equation modelling. The results suggest that all three knowledge-based dynamic capabilities can enhance perceived knowledge worker productivity, but knowledge acquisition capability has a stronger correlation with knowledge worker productivity. We also found significant moderating impacts of traits of organizational culture on several relationships. The model has significant implications for management and demonstrates that strengthening knowledge capabilities and understanding the influence of organizational culture will enhance the response of professional service firms to environmental complexities. Further implications for management include the increased utilisation of capacity to create and develop new knowledge, combine internal and external knowledge, and enhance knowledge worker productivity.