Abstract
Organizations operating in the intensive knowledge-based sector seek efficient management approaches and sustainable development practices to perform efficiently in the dynamic business environment. Knowledge management practice and organizational learning are significant factors in order to achieve sustainable organizational performance in a rapidly changing business environment. Based on the scientific literature analysis, there is still a lack of evidence related to the mediating role of the whole knowledge management cycle, including the five knowledge management processes (knowledge acquisition, creation, storage, sharing, and application) in the relationship between organizational learning and sustainable organizational performance for organizations operating in intensive knowledge-based sectors. This study aimed to examine the impact of the whole knowledge management cycle on the relationship between organizational learning and sustainable organizational performance in intensive knowledge-based sectors, specifically the audit and consulting companies in the Middle East region. Systematic scientific literature analysis, expert evaluation (structured questionnaire), and structural equation modeling (SEM) technique were used to develop and verify the research model. Data was collected through a structured questionnaire distributed among auditing experts working in a knowledge-based sector—audit and consulting companies in the Middle East region. The research results supported the hypotheses stating that organizational learning positively affects knowledge acquisition, storage, sharing, application processes, and sustainable organizational performance. However, the results verified that organizational learning has an insignificant impact on the Middle Eastern audit and consulting companies’ knowledge creation process.
Highlights
The dynamic changes in the business environment and transformational processes related to environmental, social, and economic issues have created new challenges for organizations operating in the intensive knowledge-based sector
Based on previous research limitations, this study focused on audit and consulting companies as an intensive knowledge-based sector in the Middle East region to examine the whole knowledge management cycle and determine how this cycle is affected by organizational learning
The organizational learning contribution to knowledge management processes results in the following mean values: encouraging employees to continue their education for the benefit of the organization and to store the learning they earn (4.23), encouraging employees to attend training sessions to acquire new knowledge (4.21), considering employees learning as an investment in knowledge creation (4.04), having training processes for employees to share knowledge (3.77)
Summary
The dynamic changes in the business environment and transformational processes related to environmental, social, and economic issues have created new challenges for organizations operating in the intensive knowledge-based sector. The knowledge-based sector is intensive in its inputs and outcomes of a combination of intellectual capital and technology. This sector plays an increasing role in current advanced economies, and its contribution to the business value-added of the developed economies grows constantly. The effective management of knowledge benefits those organizations from a reduction in the human and infrastructure costs and an improvement in the innovation, efficiency, and effectiveness of their operations, leading to a sustainable organizational performance [6,7,8,9]. Organizational learning affects the organization’s business processes and the flows of knowledge that increase innovation and improve overall organizational performance and leadership [10,11,12,13]
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