The Mediating Role of Knowledge Management and the Moderating Part of Organizational Culture between HRM Practices and Organizational Performance

Ahmad A Al-Tit

doi:10.5539/ibr.v9n1p43

Abstract

<p>The aim of this study was to investigate the relationship between human resource management (HRM) practices and organizational performance on the basis of 247 valid and reliable questionnaires distributed to managers at different management levels working in Jordanian manufacturing firms. The study also aimed to explore the mediating role of knowledge management as well as the moderating effect of organizational culture on the relationship between HRM practices and organizational performance. Ten HRM practices and 10 indicators of organizational performance were adopted for the purpose of this study. Knowledge management was measured by examining three processes; knowledge creation, sharing and utilization. Organizational culture was measured according to passive/defensive, aggressive/defensive and constructive cultures. The results of the study supported the presumed hypotheses. Hence, HRM practices significantly predicted organizational performance. Knowledge management mediated the relationship between HRM practices and organizational performance. Finally, it was found that organizational culture moderated the relationship between HRM practices and organizational performance as well as the relationship between HRM practices and knowledge management. Constructive cultures play a positive role in the relationship between HRM practices and organizational performance (OP), while defensive cultures negatively affect the relationship between HRM practices and knowledge management (KM). The main contribution of this study to the literature on HRM, KM and OP derives from the lack of prior studies addressing the same purposes as this study. The study informs researchers and managers that both knowledge management and organizational culture mediate and moderate the impact of HRM practices on organizational performance to a considerable extent.</p>

Highlights

In line with the literature on human resource management (HRM), knowledge management (KM), organizational culture (OC) and organizational performance (OP), it can be argued that HRM practices, KM practices and OC dimensions have numerous positive organizational influences underpinning OP
It aims to examine the relationship between HRM practices and OP. It predicts the influence of HRM practices on KM as well as the influence of KM on OP. It explores whether both HRM and OC are significantly related to KM or not
To evaluate HRM practices, a total of 10 best practices were adopted on the basis of prior research (Cai & Kleiner, 2004; González, 2004; Hashim, 2010; Moideenkutty et al, 2011; Ortega-Parra & Sastre-Castillo, 2013; Rowden, 2002; Tan & Nasurdin, 2011; Zairi, 1998): Employment security (ES), selective staffing (SS), extensive training (ET), performance evaluation (PE), information sharing (IS), incentives (IN), promotions (PR), empowerment (EM), career management (CM) and employees’ health and safety (HS) (Chan & Mak, 2012)

Summary

Introduction

In line with the literature on human resource management (HRM), knowledge management (KM), organizational culture (OC) and organizational performance (OP), it can be argued that HRM practices, KM practices and OC dimensions have numerous positive organizational influences underpinning OP. On the strength of this conclusion and considering the mediating role of KM in the relationship between HRM practices and OP (Patil & Kant, 2012), as well as the moderating role of OC in the relationship between HRM practices, KM and OP (Chang & Lin, 2015; Rai, 2011; Tong & Mitra, 2009; Wang, Su, & Yang, 2011), the purpose of this study is fourfold. It aims to examine the relationship between HRM practices and OP. It investigates the association between HRM, KM and OP

Objectives

Methods

Results

Conclusion