The Role of Knowledge Management Process and Intellectual Capital as Intermediary Variables between Knowledge Management Infrastructure and Organization Performance

Abstract

Aim/Purpose: The objective of this study was to assess the interrelationships among knowledge management infrastructure, knowledge management process, intellectual capital, and organization performance. Background: Although knowledge management capability is extensively used by organizations, reaching their maximum financial and non-financial performances has not been fully researched. Therefore, organizations need to optimize their performance by exploiting knowledge management capability through the accumulation of intellectual capital, where the new competitiveness is shifting from tangible to intangible resources. Methodology: This study adopted a positivist philosophy and deductive approach to accomplish the main goal of this research. Moreover, this research employed a quantitative approach since this study is concerned with causal relationship between variables. A questionnaire-based survey was designed to evaluate the research model using a convenience sample of 134 employees from the food industry sector in Jordan. Surveyed data was examined following the structural equation modeling procedures. Contribution: This study highlighted the potential benefits of applying the knowledge management capabilities, intellectual capital, and organizational performance to the food industrial sector in Jordan. Future research suggestions are also provided. Findings: Results indicated that knowledge management infrastructure had a positive effect on knowledge management process. In addition, knowledge management process impacted positively intellectual capital and organization performance and mediated the relationship between knowledge management infrastructure and intellectual capital. However, knowledge management infrastructure did not positively associate to organization performance. Recommendations for Practitioners: The current model is designed to help managers and decision makers to improve their management capabilities as well as their organization financial and non-financial performance through exploiting the organizational knowledge management infrastructure and intellectual capital approaches. Recommendation for Researchers: Our findings can be used as a base of knowledge to conduct further studies about knowledge management capabilities, intellectual capital, and organization performance following different criteria and research procedures. Impact on Society: The designed model highlights a significant organizational performance approach that can influence Jordanian food industrial sector positively. Future Research: The current designed research model can be applied and assessed further in other sectors including banking and industrial sectors across developed and developing countries. Also, we suggest that in addition to focusing on knowledge management process and intellectual capital as mediating variables, future research could test our findings in a longitudinal study and examine how to affect financial and non-financial performance.