Knowledge Management Capability and Innovativeness of Public Organizations: Examining the Moderating Roles of Social Capital and Creative Organizational Climate

Panissara  Naowakhoaksorn; Pornlapas Suwannarat; Karun Pratoom; Veeraya Pataraarechachai

doi:10.55766/DZXJ8971

Authors

Panissara Naowakhoaksorn Mahasarakham Business School, Mahasarakham University
Pornlapas Suwannarat Department of Management, Mahasarakham Business School, Mahasarakham University
Karun Pratoom Department of Management, Mahasarakham Business School, Mahasarakham University
Veeraya Pataraarechachai Department of Management, Mahasarakham Business School, Mahasarakham University

DOI:

https://doi.org/10.55766/DZXJ8971

Keywords:

Knowledge-Oriented Leadership, Knowledge Management Capability, Social Capital, Creative Organizational Climate, Organizational Innovativeness

Abstract

The main objective of this study is to examine the moderating role of social capital on the relationship between knowledge-oriented leadership and knowledge management capability (KMC). Also, to explore the moderating role of creative organizational climate on the relationship between KMC and public organizational innovativeness is aimed. Structural equation modeling (SEM) was applied to analyze the survey data from 784 tax administrative organizations in Thailand to test the proposed hypotheses. The results presented that knowledge-oriented leadership positively influences KMC. Meanwhile, KMC positively affects public organizational innovativeness. For the moderating effect, the findings indicated that social capital positively moderates the relationship between knowledge-oriented leadership and KMC. Additionally, creative organizational climate positively moderates the relationship between the accumulation of knowledge stocks and organizational innovativeness. Surprisingly, creative organizational climate negatively moderates the relationship between the regulation of knowledge flows and organizational innovativeness. These empirical results provide some recommendations for executives of public organizations in recognizing how to appropriately play a leadership role for effective knowledge management. Simultaneously, they could support important internal factors such as social capital and creative organizational climate to enhance their knowledge management capability and organizational innovativeness.

References

Abbasi, E., & Zamani-Miandashti, N. (2013). The Role of Transformational Leadership, Organizational Culture and Organizational Learning in Improving the Performance of Iranian Agricultural Faculties. Higher Education. 66(4): 505-519.

Akhavan, P., & Mahdi Hosseini, S. (2016). Social Capital, Knowledge Sharing, And Innovation Capability: An Empirical Study Of R&D Teams in Iran. Technology Analysis & Strategic Management. 28(1): 96-113.

Aminbeidokhti, A., Nikabadi, M. S., & Hoseini, A. M. (2016). The Role of Transformational Leadership and Knowledge Management Processes on The Rate of Organisational Innovation. International Journal of Knowledge Management Studies. 7(3-4): 270-287.

Armstrong, J. S., & Overton, T. S. (1977). Estimating Nonresponse Bias in Mail Surveys. Journal of Marketing research. 14(3): 396-402.

Andrews, D., & Criscuolo, C. (2013). Knowledge-Based Capital, Innovation and Resource Allocation. OECD Economics Department Working Papers, No.1046. Paris: OECD Publishing.

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management. 17(1): 99-120.

Barton, D. L., & Sensiper, S. (1998). The Role of Tacit Knowledge in Group Innovation. California Management Review. 40(3): 112-131.

Birasnav, M., Albufalasa, M., & Bader, Y. (2013). The Role of Transformational Leadership and Knowledge Management Processes on Predicting Product and Process Innovation: An Empirical Study Developed in Kingdom of Bahrain. Tékhne. 11(2): 64-75.

Birasnav, M. (2014). Knowledge Management and Organizational Performance in The Service Industry: The Role of Transformational Leadership Beyond the Effects of Transactional Leadership. Journal of Business Research. 67(8): 1622-1629.

Bollen, K. A. (1989). A New Incremental Fit Index for General Structural Equation Models. Sociological Methods & Research. 17(3): 303-316.

Bourdieu, P. (1983). The Field of Cultural Production, or: The Economic World Reversed. Poetics. 12(4-5): 311-356.

Cai, Z., Liu, H., Huang, Q., & Liang, L. (2019). Developing Organizational Agility in Product Innovation: The Roles of IT Capability, KM Capability, And Innovative Climate. R&D Management. 49(4): 421-438.

Camps, J., & Rodríguez, H. (2011). Transformational Leadership, Learning, And Employability. Personnel Review. 40(4): 423-442.

Černe, M., Jaklič, M., & Škerlavaj, M. (2013). Authentic Leadership, Creativity, And Innovation: A Multilevel Perspective. Leadership. 9(1): 63-85.

Chen, C. J., Huang, J. W., & Hsiao, Y. C. (2010). Knowledge Management and Innovativeness. International Journal of Manpower. 31(8): 848-870.

Chiu, C. N., & Chen, H. H. (2016). The Study of Knowledge Management Capability and Organizational Effectiveness in Taiwanese Public Utility: The Mediator Role of Organizational Commitment. SpringerPlus. 5(1): 1-34.

Coad, A. F., & Berry, A. J. (1998). Transformational Leadership and Learning Orientation. Leadership & Organization Development Journal. 19(3): 164-172.

Coleman, J. S. (1988). Social Capital in The Creation of Human Capital. American Journal of Sociology. 94: S95-S120.

Costello, G. J., & Donnellan, B. (2011). Beyond RBV and KBV to an Innovation-Based View of the Firm. In Proceedings of School of Engineering GMIT Conference (pp 1-44). Ireland: Galway-Mayo Institute of Technology.

Coveney, B. H. (2008). Assessing The Organisational Climate for Creativity in A UK Public Library Service: A Case Study. Library and Information Research. 32(102): 38-56.

Deeyiam, S., & Boontongkham, N. (2020). Public Innovation in Thai Government Sector. Journal of Legal Entity Management and Local Innovation. 6(3): 287-299.

Demchig, B. (2015). Knowledge Management Capability Level Assessment of The Higher Education Institutions: Case Study from Mongolia. Procedia-Social and Behavioral Sciences. 174: 3633-3640.

DeTienne, K. B., Dyer, G., Hoopes, C., & Harris, S. (2004). Toward a Model of Effective Knowledge Management and Directions for Future Research: Culture, Leadership, And CKOs. Journal of Leadership & Organizational Studies. 10: 26-43.

Diamantopoulos, A., & Siguaw, J. A. (2000). Introducing LISREL: A Guide for The Uninitiated. Thousand Oaks, CA: Sage.

Donate, M. J., & de Pablo, J. D. S. (2015). The Role of Knowledge-Oriented Leadership in Knowledge Management Practices and Innovation. Journal of Business Research. 68(2): 360-370.

Drazin, R., & Van de Ven, A. H. (1985). Alternative Forms of Fit in Contingency Theory. Administrative Science Quarterly. 30(4): 514-539.

Ekvall, G. (1996). Organizational Climate for Creativity and Innovation. European Journal of Work and Organizational Psychology. 5: 105-123.

Felin, T., &. Hesterly, W.S. (2007). The Knowledge-Based View, Nested Heterogeneity, And New Value Creation: Philosophical Considerations on The Locus of Knowledge. Academy of Management Review. 32(1): 195-218.

Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research. 18(3): 382-388.

Garcia-Morales, V. J., Llorens-Montes, F. J., & Verdú-Jover, A. J. (2006). Antecedents and Consequences of Organizational Innovation and Organizational Learning in Entrepreneurship. Industrial Management & Data Systems. 106: 21-42.

García-Morales, V. J., Jiménez-Barrionuevo, M. M., & Gutiérrez-Gutiérrez, L. (2012). Transformational Leadership Influence on Organizational Performance Through Organizational Learning and Innovation. Journal of Business Research. 65(7): 1040-1050.

García-Álvarez, M.T. (2015). Analysis of the Effects of Icts in Knowledge Management and Innovation: The Case of Zara Group. Computers in Human Behavior. 51(1): 994-1002.

Gerdin, J., & Greve, J. (2008). The Appropriateness of Statistical Methods for Testing Contingency Hypotheses in Management Accounting Research. Accounting, Organizations and Society. 33(7-8): 995-1009.

Grant, R. M. (1996). Toward a Knowledge‐Based Theory of The Firm. Strategic Management Journal. 17(S2): 109-122.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis. Pearson Prentice Hall Upper Saddle River.

Hair, M. L., & Tripp, C. P. (1995). Alkylchlorosilane Reactions at The Silica Surface. Colloids and Surfaces A: Physicochemical and Engineering Aspects. 105(1): 95-103.

Hoffman, J. J., Hoelscher, M. L., & Sherif, K. (2005). Social Capital, Knowledge Management, And Sustained Superior Performance. Journal of Knowledge Management. 9(3): 93-100.

Hult, T.M., Hurley, R.F., & Knight, G.A., 2004. Innovativeness: Its Antecedents and Impact on Business Performance. Industrial Marketing Management. 33: 429-438.

Hurley, R. F., & Hult, G. T. M. (1998). Innovation, Market Orientation, And Organizational Learning: An Integration and Empirical Examination. Journal of Marketing. 62(3): 42-54.

Ingebrigtsen, T., Georgiou, A., Clay-Williams, R., Magrabi, F., Hordern, A., Prgomet, M., & Braithwaite, J. (2014). The Impact of Clinical Leadership on Health Information Technology Adoption: Systematic Review. International Journal of Medical Informatics. 83(6): 393-405.

Isaksen, S. G., & Ekvall, G. (2010). Managing For Innovation: The Two Faces of Tension in Creative Climates. Creativity and Innovation Management. 19(2): 73-88.

Ismail, M. (2005). Creative Climate and Learning Organization Factors: Their Contribution Towards Innovation. Leadership & Organization Development Journal. 26(8): 639-654.

Jabbouri, N. I., Siron, R., Zahari, I., & Khalid, M. (2016). Impact of Information Technology Infrastructure on Innovation Performance: An Empirical Study on Private Universities in Iraq. Procedia Economics and Finance. 39: 861-869.

Kaplan, R. S., & Norton, D. P. (2004). The Strategy Map: Guide to Aligning Intangible Assets. Strategy & Leadership. 32(5): 10-17.

Kim, T. T., Lee, G., Paek, S., & Lee, S. (2013). Social Capital, Knowledge Sharing and Organizational Performance. International Journal of Contemporary Hospitality Management. 25(5): 683-704.

Li, S., Ragu-Nathanb, B., Ragu-Nathanb, T.S. Raob, S. (2006). The Impact of Supply Chain Management Practices on Competitive Advantage and Organizational Performance, Omega: The International Journal of Management Science. 34: 107 - 124.

Lin, C. Y. Y., & Liu, F. C. (2012). A Cross‐Level Analysis of Organizational Creativity Climate and Perceived Innovation. European Journal of Innovation Management. 15(1): 55-76.

Liu, S., & Deng, Z. (2015). Understanding Knowledge Management Capability in Business Process Outsourcing: A Cluster Analysis. Management Decision. 53(1): 124-138.

Lumpkin, T.G., Dess, G.G., 1996. Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance. Academy of Management Journal. 21(1): 135-172.

Luthans, F., & Stewart, T. I. (1977). A General Contingency Theory of Management. Academy of Management Review. 2(2): 181-195.

Mafabi, S., Munene, J., & Ntayi, J. (2012). Knowledge Management and Organisational Resilience: Organisational Innovation as A Mediator in Uganda Parastatals. Journal of Strategy and Management. 5(1): 57-80.

Manning, P. (2010). Explaining and Developing Social Capital for Knowledge Management Purposes. Journal of Knowledge Management. 14(1): 83-99.

Martinez-Conesa, I., Soto-Acosta, P., & Carayannis, E. G. (2017). On the Path Towards Open Innovation: Assessing the Role of Knowledge Management Capability and Environmental Dynamism in SMEs. Journal of Knowledge Management. 21(3): 553-570.

Mergel, I. (2018). Open Innovation in The Public Sector: Drivers and Barriers for The Adoption of Challenge. gov. Public Management Review. 20(5): 726-745.

Miranda, S. M., Lee, J. N., & Lee, J. H. (2011). Stocks and Flows Underlying Organizations’ Knowledge Management Capability: Synergistic Versus Contingent Complementarities Over Time. Information & Management. 48(8): 382-392.

Mládková, L. (2012). Leadership in Management of Knowledge Workers. Procedia-Social and Behavioral Sciences. 41: 243-250.

Mostafa, M. M., & El‐Masry, A. (2008). Perceived Barriers to Organizational Creativity. Cross Cultural Management: An International Journal. 15(1): 81-93.

Nahapiet, J., & Ghoshal, S. (1998). Social Capital, Intellectual Capital, And the Organizational Advantage. Academy of Management Review. 23(2): 242-266.

Naqshbandi, M. M., & Jasimuddin, S. M. (2018). Knowledge-Oriented Leadership and Open Innovation: Role of Knowledge Management Capability in France-Based Multinationals. International Business Review. 27(3): 701-713.

Naqshbandi, M. M., & Tabche, I. (2018). The Interplay of Leadership, Absorptive Capacity, And Organizational Learning Culture in Open Innovation: Testing a Moderated Mediation Model. Technological Forecasting and Social Change. 133: 156-167.

Narasimha, S. (2000). Organizational Knowledge, Human Resource Management, And Sustained Competitive Advantage: Toward A Framework. Competitiveness Review: An International Business Journal. 10(1): 123-135.

Nawaz, Z. A. K. D. A., & Khan_ Ph.D., I. (2016). Leadership Theories and Styles: A Literature Review. Leadership. 16(1): 1-7.

Nguyen, H. N., & Mohamed, S. (2011). Leadership Behaviors, Organizational Culture and Knowledge Management Practices. Journal of Management Development. 30(2): 206-221.

Nunnally, J. C. (1967). Psychometric theory 1st ed. McGraw-Hill New York.

Nunnally, J. C., & Bernstein, I. H. (1978). Psychometric Theory 2nd ed. McGraw-Hill New York.

Özbağ, G. K., Esen, M., & Esen, D. (2013). The Impact of HRM Capabilities on Innovation Mediated by Knowledge Management Capability. Procedia-Social and Behavioral Sciences. 99: 784-793.

Park, S., & Kim, E. J. (2018). Fostering Organizational Learning Through Leadership and Knowledge Sharing. Journal of Knowledge Management. 22(6): 1408-1423.

Pee, L. G., & Kankanhalli, A. (2009). A model of Organisational Knowledge Management Maturity Based on People, Process, And Technology. Journal of Information & Knowledge Management. 8(02): 79-99.

Pini, P., & Santangelo, G. D. (2010). The Underlying Internal Learning Processes of Incremental and Radical Innovations: An Analysis in The Emilia-Romagna Region. Economia Politica. 27(1): 55-82.

Pucciarelli, F., & Kaplan, A. (2016). Competition and Strategy in Higher Education: Managing Complexity and Uncertainty. Business Horizons. 59(3): 311-320.

Putnam, R. (1993). The Prosperous Community: Social Capital and Public Life. The American Prospect. 4(13): 1-11.

Sadeghi, A., & Rad, F. (2018). The Role of Knowledge-Oriented Leadership in Knowledge Management and Innovation. Management Science Letters. 8(3): 151-160.

Samad, A. (2004). Performance of Interest-Free Islamic Banks Vis-À-Vis Interest-Based Conventional Banks of Bahrain. International Journal of Economics, Management and Accounting. 12(2): 1-15.

Samad, S. (2010). The Role of Creative Organizational Climate on Learning Organization-A Key Component of Knowledge Management. In Proceedings of 2010 Second International Conference on Computer Engineering and Applications (pp 404-409). Malaysia: IEEE.

Schepers, J., Wetzels, M., & de Ruyter, K. (2005). Leadership Styles In Technology Acceptance: Do Followers Practice What Leaders Preach?. Managing Service Quality. 15(6): 496-508.

Schermelleh-Engel, K., & Moosbrugger, H. (2003). Evaluating The Fit of Structural Equation Models: Tests of Significance and Descriptive Goodness-Of-Fit Measures. Methods of Psychological Research Online, 8(2): 23-74.

Seleim, A. A., & Khalil, O. E. (2011). Understanding the Knowledge Management-Intellectual Capital Relationship: A Two-Way Analysis. Journal of Intellectual Capital. 12(4): 586-614.

Senge, P. M., Kleiner, A., Roberts, C., Ross, R., & Smith, B. (1994). The Fifth Discipline Fieldbook: Strategies and Tools for Building a Learning Organization. New York: Currency.

Shah, J., & Ali, B. (2011). Organizational Climate: Stimulating Creativity and Idea Generation for Discovery of Innovative Solutions. Interdisciplinary Journal of Contemporary Research in Business. 3(1): 429-447.

Shahzad, K., Bajwa, S. U., Siddiqi, A. F. I., Ahmid, F., & Sultani, A. R. (2016). Integrating Knowledge Management (KM) Strategies and Processes to Enhance Organizational Creativity and Performance. Journal of Modelling inManagement. 11(1): 154-179.

Shamim, S., Cang, S., Yu, H., & Li, Y. (2016). Management Approaches for Industry 4.0: A Human Resource Management Perspective. In Proceedings of 2016 IEEE Congress on Evolutionary Computation (CEC) (pp 5309-5316). Vancouver, BC: IEEE.

Shoham, A., Vigoda-Gadot, E., Ruvio, A., & Schwabsky, N. (2012). Testing An Organizational Innovativeness Integrative Model Across Cultures. Journal of Engineering and Technology Management. 29(2): 226-240.

Singh, S. K. (2008). Role of Leadership in Knowledge Management: A Study. Journal of Knowledge Management. 12(4): 3-15.

Smith, P. A., Bakker, M., Leenders, R. T. A., Gabbay, S. M., Kratzer, J., & Van Engelen, J. M. (2006). Is Trust Really Social Capital? Knowledge Sharing in Product Development Projects. The Learning Organization. 13(6): 594-605.

Stahl, G. K., Mäkelä, K., Zander, L., & Maznevski, M. L. (2010). A Look at The Bright Side of Multicultural Team Diversity. Scandinavian Journal of Management. 26(4): 439-447.

Sundgren, M., Dimenäs, E., Gustafsson, J. E., & Selart, M. (2005). Drivers of Organizational Creativity: A Path Model of Creative Climate in Pharmaceutical R&D. R&D Management. 35(4): 359-374.

Suwannarat, P. (2016a). The Study of Export Intermediary Performance Determinants. Multinational Business Review. 24(2): 123-143.

Suwannarat, P. (2016b). Export Intermediaries and their Competency to Reduce Transaction Costs: Examining the Moderating Role of Learning Orientation. Asian Journal of Business and Accounting. 9(2): 181-217.

Thenint, H. (2010). Mini Study 10 Innovation in the Public Sector. Global Review of Innovation Intelligence and Policy Studies. 1-51.

Turner, R. C., & Carlson, L. (2003). Indexes of Item-Objective Congruence for Multidimensional Items. International Journal of Testing. 3(2): 163-171.

Ugwu, C. I., & Okore, A. M. (2020). Transformational and Transactional Leadership Influence on Knowledge Management Activities of Librarians in University Libraries in Nigeria. Journal of Librarianship and Information Science. 52(3): 864-879.

Werlang, N. B., & Rossetto, C. R. (2019). The Effects of Organization Learning and Innovativeness on Organizational Performance in The Service Provision Sector. Gestão & Produção. 26(3): 1-18.

Wiig, K. M. (1997). Integrating Intellectual Capital and Knowledge Management. Long Range Planning. 30(3): 399-405.

Williams, P., & Sullivan, H. (2011). Lessons in Leadership for Learning and Knowledge Management in Multi-Organisational Settings. International Journal of Leadership in Public Services. 7: 6-20.

Wu, W. Y., & Tsai, H. J. (2005). Impact of Social Capital and Business Operation Mode on Intellectual Capital and Knowledge Management. International Journal of Technology Management. 30(1-2): 147-171.

Yang, K., H., Lee, S., M., & Lee, S. (2007). Adoption of Information and Communication Technology, Industrial Management & Data Systems. 107(9): 1257-1275.

Yström, A., Aspenberg, H., & Kumlin, A. (2015). Exploring the Creative Climate in An Open Innovation Arena: Identifying Challenges and Possibilities. European Journal of Innovation Management. 18(1): 70-85.