A Study of the Effect of Knowledge Creating Capabilities on Corporate Performance

In response to the concern regarding the evaluation of knowledge management initiatives, this study introduces the concept of ‘knowledge creating capabilities‘. This concept refers to the balance of the four knowledge creation modes proposed in the SECI Model by Nonaka and Takeuchi (1995). The relationship of this concept with corporate financial performance is explored using two financial indicators on small and medium Japanese enterprises from the manufacturing sector. The empirical evidence shows the positive association of knowledge creation capabilities with financial performance.

[1]  Joseph G. Davis,et al.  Effects of knowledge management strategy on organizational performance: A complementarity theory-based approach , 2008 .

[2]  Ikujiro Nonaka,et al.  From information processing to knowledge creation: A Paradigm shift in business management , 1996 .

[3]  Tony Holden,et al.  From knowledge theory to management practice: towards an integrated approach , 2001, Inf. Process. Manag..

[4]  Mu-Yen Chen,et al.  Knowledge management performance evaluation: a decade review from 1995 to 2004 , 2006, J. Inf. Sci..

[5]  I. Nonaka,et al.  SECI, Ba and Leadership: a Unified Model of Dynamic Knowledge Creation , 2000 .

[6]  Heeseok Lee,et al.  An empirical investigation of KM styles and their effect on corporate performance , 2003, Inf. Manag..

[7]  Maurizio Zollo,et al.  The Impact of Knowledge Codification, Experience Trajectories and Integration Strategies on the Performance of Corporate Acquisitions , 1998 .

[8]  Rajiv Sabherwal,et al.  An Empirical Study of the Effect of Knowledge Management Processes at Individual, Group, and Organizational Levels , 2003, Decis. Sci..

[9]  Kun Chang Lee,et al.  KMPI: measuring knowledge management performance , 2005, Inf. Manag..

[10]  Shih-Wei Chou,et al.  Knowledge creation: absorptive capacity, organizational mechanisms, and knowledge storage/retrieval capabilities , 2005, J. Inf. Sci..

[11]  Mu-Yen Chen,et al.  Integrating option model and knowledge management performance measures: an empirical study , 2005, J. Inf. Sci..

[12]  I. Nonaka,et al.  Organizational knowledge creation theory: A first comprehensive test , 1994 .

[13]  Heeseok Lee,et al.  Knowledge management strategy and its link to knowledge creation process , 2002, Expert Syst. Appl..

[14]  Morten T. Hansen,et al.  What's your strategy for managing knowledge? , 1999, Harvard business review.

[15]  Nassim Belbaly,et al.  Corporate Portal: A Tool for Knowledge Management Synchronization , 2004, Int. J. Inf. Manag..