Business and knowledge strategies: Alignment and performance impact analysis

• Main Author: Asoh, Derek Ajesam
• Format: Dissertation
• Language: English
• Subjects: business administration, management; information science
• ISBN: 9780496818815; 0496818813

The recognition of knowledge as the most valuable resource has motivated firms to engage in its formal management. To achieve better organizational performance from managing knowledge, management strategists recommend that firms relate knowledge management with business activities. As a resource, knowledge can be related to business through alignment, as is applicable to other resources such as information. Despite interest in managing knowledge, however, there has been little or no research about aligning knowledge-related resources with business. Lack of empirical evidence creates a gap between the theory and practice of knowledge management. In this study, I integrated theories about knowledge and alignment to develop an alignment framework and model for knowledge management research, developed a knowledge strategy construct, and empirically tested the alignment model within a mediation perspective along with the Miles and Snow's strategic typology. Mediation was interpreted as the mechanism through which knowledge strategy could catalyze business strategy for the attainment of better performance and vice versa.
Data from an international survey was analyzed using the variance-based partial least square, structural equation modeling technique. Competing models depicting the roles of business strategy and knowledge strategy in mediating the performance link were examined. Results indicate that business and knowledge strategies positively impact performance, explaining about 45% percent of its variation. In all models, the prospector-analyzer business strategic orientation stood out as the better mediator of firm's performance. Though exploratory, an important management implication of this study is that it may make more sense for firms to orientate their business strategies and operations based on their knowledge resources rather than trying to engage in knowledge management activities as a response to business needs since this study shows such knowledge-related activities do not adequately enhance business activities in terms of firm performance objectives.