The Knowledge Management Practices as Moderator in the Relationship between Corporate Strategy and Firm Performance among Public-listed Organizations in Malaysia

By Raja Suzana Raja Kasim, Raduan Che Rose, Jegak Uli and Khairuddin Idris.

Published by The Organization Collection

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Article: Electronic $US5.00

Despite interest in managing knowledge, however, there has been very little research about incorporating the knowledge management practices in the corporate strategy agenda of the organization. Lack of empirical evidence creates a gap between theory and practices of knowledge management in the corporate strategy issues. In this study, the researchers integrate theories on the knowledge-based view and the resources-based view of the firm and strategy to develop a suitable framework and model for knowledge management research; develop a knowledge management construct and empirically tested the research model within the moderation perspective along with the Miles and Snow’s strategy typology. In particular, the influenced of the knowledge management practices as key moderating variable which have been neglected in Malaysian previous studies are examined. The theoretical model is empirically tested using data from 123 public-listed organizations in Malaysia. Data from the survey is analyzed using the higher order interaction effects of the Moderated Multiple Regressions analysis. Results indicate that corporate strategy and the knowledge management practices positively impact firm performance. The moderating effect of the knowledge management practices explains 13% of variance in firm performance increase and beyond the increased explained by the corporate strategy. An important management implication of this study is that it confirms that either the corporate strategy alone or knowledge-related activities alone do not adequately enhance business activities which in turn leads to contribute to the performance of the organizations. Instead, this study suggests that greater utilization of the knowledge management practices in crafting the corporate strategy both in the aspect of operational effectiveness (internally) and strategic positioning (externally) help organizations to pinpoint areas within the organizations where the knowledge management practices is creating value. It is the fit between the organization structure, process and the corporate goals for the knowledge management practices facilitates the success of a good structure, which in turn, leads to better firm performance and contribute the understanding of how the knowledge management practices can improve firm performance.

Keywords: Knowledge, Knowledge Management Practices, Strategy, Corporate Strategy, Firm Performance, Public-listed Organizations, Malaysia

The International Journal of Knowledge, Culture and Change Management, Volume 7, Issue 2, pp.59-72. Article: Print (Spiral Bound). Article: Electronic (PDF File; 669.574KB).

Dr. Raja Suzana Raja Kasim

Lecturer, The Graduate School of Management, Universiti Putra Malaysia, Shah Alam, Selangor, Malaysia

Raja Suzana Raja Kasim is a faculty member of the Office Management and Technology of the Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia. She holds a Master's in Information Management from the Universiti Teknologi MARA, Malaysia and BBA from the National University of Malaysia. She is currently a final semester P.hD. student from the Graduate School of Management, University Putra Malaysia. Her research interests include knowledge management, organization-level strategy, human resource management and information management.

Associate Professor Raduan Che Rose

Universiti Putra Malaysia, Selangor, Malaysia

Raduan Che' Rose is a senior lecturer, associate professor of human resource management and the deputy dean of the Graduate School of Management at the Universiti Putra Malaysia. His research interests focus on topics of human resource strategy, international human resource management, organizational learning and management. He is the author of several management books, particularly the management and human resource management and his research article was published in the Journal of International Business Studies. Since 1994, Assoc. Prof. Dr. Raduan has received numerous research funding from the Ministry of Higher Education and Ministry of Science, Technology and Innovation of Malaysia for more than a dozen projects.

Jegak Uli

Faculty of Educational Studies, Universiti Putra Malaysia, Selangor, Malaysia

Jegak Uli is a senior lecturer and an associate professor at the Faculty of Education at the Universiti Putra Malaysia. His research interests focus on topics of quality management, business statistic, organizational learning and management. He is the author of several management books, particularly the management and human resource management and his research article was published in the Journal of International Business Studies. Since 1994, Assoc. Prof. Dr. Jegak has received numerous research funding from the Ministry of Higher Education and Ministry of Science, Technology and Innovation of Malaysia for more than a dozen projects.

Prof. Khairuddin Idris

Faculty of Educational Studies, Universiti Putra Malaysia, Selangor, Malaysia

Khairuddin is a senior lecturer and an associate professor at the Faculty of Education at the Universiti Putra Malaysia. His research interests focus on topics of knowledge management, organizational learning and management. He is the author of several management books, particularly the management and human resource management and his research article was published in the Journal of International Business Studies. Since 1994, Assoc. Prof. Dr. Khairuddin has received numerous research funding from the Ministry of Higher Education and Ministry of Science, Technology and Innovation of Malaysia for more than a dozen projects.

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