Mediating Effect of Competitive Intensity on the Relationship between Knowledge Management Orientation and Organizational Performance

Abstract

Managing organizational knowledge and the effective utilization of knowledge resources are crucial for fostering continuous learning and innovation, enabling employees to adopt best practices within the organization. By leveraging knowledge resources, businesses can enhance decision-making, streamline processes, and respond to market volatility, ultimately driving competitive advantage and overall success. To achieve superior organizational performance amidst dynamic environments, it is vital to understand the role of competitive intensity and its impact on knowledge management and overall success. In the literature on Knowledge Management (KM), there are numerous contradictory findings regarding the relationship between Knowledge Management Orientation (KMO) and Organizational Performance (OP). Empirical studies are essential to address this gap and explore the evolving relationships between KMO and OP. This study aims to identify the effect of KMO on OP, focusing on the mediating role of competitive intensity. The population for this study consists of listed companies in Sri Lanka, that employ a census sampling technique. The study received 254 responses from a total of 295 listed companies, utilizing a structured questionnaire for data collection. The findings indicate a positive and significant effect of KMO on OP. However, the study also reveals that competitive intensity does not mediate the relationship between KMO and OP. This research provides valuable insights for academics, policymakers, and industry practitioners. It concludes that organizations can achieve growth and success despite intense competition in the marketplace by effectively implementing knowledge management practices. This study offers robust insights into strategic decision making, suggesting that external environmental volatility should not constrain organizational policy decisions. Instead, when knowledge-based resources are effectively applied, organizations can achieve their ultimate goals. Future researchers are encouraged to further investigate this phenomenon to uncover new insights within the field of strategic management.