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Applied mathematics in Engineering, Management and Technology 2 (2) 2014:66-87

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Abstract

This study aims to providing a conceptual model for gaining sustainable

competitive advantage based on knowledge management, organizational innovation

and agility. For this scientific purpose, sustainable competitive advantage

approaches reviewed and the newest and also the most complete one that eliminates

previous approaches disadvantages, dynamic capabilities view, identified. Based on

selected SCA approach, knowledge management, organizational innovation and

agility dynamic capabilities and their inter-relationships recognized from the

literature. Finally after a deep literature reviewing, primary model suggested and

validated in two stages. In first stage five experts of strategic management who

were very familiar with KM, innovation and agility concepts revised the model. In

second stage based on proposed model a questionnaire suggested for model

validation. Questionnaire validity confirmed according to experts views and

considered in interview and responding sessions with 30 experts and its reliability

gained 0.708 in Cronbach's alpha method. Collected answered questionnaires

analyzed with SPSS software. Results indicated the model approximately high validity.

Keywords: Sustainable competitive advantage, Knowledge management, Organizational innovation, Agility, Capability

1.Introduction

Nowadays in current economic difficulties organizations performance depends on their competitive advantage

merely (De Oliveira Teixeira & Werther, 2013). Regard to recent financial crisis, changing environment and

other international issues organizations found that gaining and sustaining competitive advantage is increasingly

difficult (D'Aveni, Dagnino & Smith, 2010).

According to Helfat and Peteraf (2009) gaining sustainable competitive advantage is strategic management

researches "Holy Grail". Strategic management looks for resources that provide competitive advantage

sustainability (Korsaa & Jensen, 2010). Kang (2008) claimed that strategic management has been changed

considerably from its beginning views in 1950 decade around integrating internal situations with external

expectations for executing organization policies.

Two main approaches presented for sustainable competitive advantage before current decade. These approaches

consisted of industrial organization view which attracted attentions with Porter (1985) five competitive force

model and resource based view suggested by Barney and Arikan (2001) that considers organizations

differentiation in resources for more business success.

According to some limitations former approaches had, a new approach called dynamic capabilities view

presented by Teece et al (1997). In this approach dynamic capabilities are a firm’s ability to rapidly integrate

and reconfigure resources to match a changing environment (Eisenhardt & Martin, 2000).

In the other hand some scolars like Nasimi et al (2013), Mahdi et al (2011), Li and Zhao (2006) and some

others mentioned that knowledge management is an important organizational capability for sustainable

competitive advantage creation. In Tseng and Lin (2011), Bottani (2009) and some other intellectual's studies

agility introduced as an essential circumstance for organizational survivability and competitiveness.

Organizational innovation has been illustrated as a facilitator for sustainable competitive advantage gaining in

A Combined Model for Sustainable Competitive Advantage Based

on knowledge Management, Organizational Innovation and Agility

Mostafa Jafari Assistant Professor, Industrial Engineering Faculty, Iran University of Science and Technology, Tehran, Iran

Farnaz Barzin Pour Assistant Professor, Industrial Engineering Faculty, Iran University of Science and Technology, Tehran, Iran

Mansour Maleki* [email protected]

MSc Student of Executive Master of Business Administration, Iran University of Science and Technology, Iran

mailto:[email protected]

Applied mathematics in Engineering, Management and Technology 2 (2) 2014

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Ganter and Hecker (2013), Comison and Villar-Lopez (2011) and Gunday et al (2011) and some other

researches.

The present study contributes to the existing knowledge by presenting a new model of sustainable competitive

advantage based on dynamic capability view by identifying and integrating knowledge management,

organizational innovation and agility capabilities.

2. Literature Review

2.1.Sustainable competitive advantage

Lio et al (2002) believe that sustainable competitive advantage refers to those competitive advantages are

valuable for customers, not easily imitated by competitors, not duplicated and merit organizational performance

and competitiveness. According to Narver and Slater (2000), in the past, competitive advantage based on

structural characteristics, such as marketing power, economies of scale or mass production, but is now focusing

on the business capabilities that enable customers to create superior value without contradiction.

Sustainable competitive advantage concept evolution mentioned in Table.1.

Table.1 sustainable competitive advantage concept evolution- modified from Steiber (2012)

Scholars Research Issue Contribution

Alderson (1965) Search for differentiation Technological, legal and geographical

resources for differentiation

Hall (1980) Survival strategies in a

challenging environment

The lowest cost to achieve and

differentiated position for SCA

Henderson (1983) Competence structure Quickly adapt to the competitive

environment

Porter (1985) Competitive Advantage:

Creating and sustaining

Valuable creation source of sustainable

competitive advantage

Coyne (1986) What is a sustainable


Capability Gaps

Ghemawat (1986) Sustainable advantage Market share, access to resources and

customers, competitors barriers for

competition are resources to achieve

sustainable competitive advantage

Day & Wensley

(1988)

Advantage assessment

framework

Skills and resources to achieve


Dierickx & Cool

(1989)

Saving and asset accumulation

for sustainable competitive

advantage

Assets limited or sustained

Hamel & Prahalad

(1990)

Core competencies of the

organization

Providing core competences, skills and

resources

Conner (1991) Historical approach to the

resource-based view

Reduce costs and attract customers

Bharadwaj et al

(1993)

Sustainable competitive

advantage in service

organizations

Recognizable marketing services for

clients

Day & Nedungadi

(1994)

Managerial competitive

advantage

Customer orientation versus competition

orientation to create a sustainable


Hunt & Morgan

(1995)

Theory of comparative

advantage and competitiveness

Resources determine the competitive

position

Oliver (1997) Sustainable competitive

advantage

Heterogeneous and organizational capital

resources to achieve sustainable


Srivastava et al Market-based assets and The importance of relational and


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(1998) shareholder value intellectual assets

Hoffman (2000) The concept of sustainable

competitive advantage in the

past, present and future

Discussion of market orientation,

customer value, relational marketing and

network in a sustainable competitive

advantage

Burden & Proctor

(2000)


advantage through training

Training means that organizations need

to successfully make use of it

Sadri & Lees (2001) Organizational culture as a


Constructive culture, creating a


Coates &

McDermott (2002)

Exploratory analysis of new

competencies

Technology competencies, to create a


Adams & Lamont

(2003)

Knowledge management

system and sustainable


Sustainable competitive advantage,

leading innovation-driven knowledge

management

Sharkie (2003) Knowledge creation in order to

provide sustainable competitive

advantage

Suitable knowledge creation, SCA

provider

Kotelnikov (2004) Sustainable competitive

advantage

Synergistic distinctive capabilities and

reproducible capabilities as sources of


Khandekar &

Sharma (2005)

The capabilities of human

resources and create a

sustainable competitive

advantage

Human resource capabilities to create


Javalgi &

Radulovich (2005)


advantage of internet based

businesses

Internet is a source of sustainable


Bonney et al (2007) From serendipity to sustainable

competitive advantage:

innovation and cooperative

approach

Innovation, an essential step in achieving

a sustainable competitive advantage

Kindestrom (2010) Service-oriented organizational

model and future competitive

advantage

Services, creating sustainable


Bhuvyan (2011) Latent sources of sustainable

competitive advantage in

Chinese organizations

Technical know-how, organizational

competence and confidence, the sources

of sustainable competitive advantage

Shim & Lee (2012) Sustainable competitive

advantage based on innovation

and threats in the market with

the net effect of new

competitors

Innovation, key source of sustainable


Prianto et al (2012) The traditional strategies and

sustainable competitive

advantage

Traditional strategies, sources of


Yalcin (2013) Sustainable competitive

advantage, knowledge

management and intellectual

capital

Intellectual capital and knowledge

management, sustainable competitive

advantage creators

Leonidou et al

(2013)

Resources and capabilities,

actuators competitive advantage

in the hotel industry

Resources and capabilities, actuators

competitive advantage in the hotel

industry

2.2Knowledge Management


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Singh (2008) defined knowledge management as a process that facilitates knowledge sharing and establishes

learning as continuous process within an organization.

According to Sandhawalia and Dalcher (2011) Knowledge management (KM) has become increasingly

important as organizations realize that effective use of their vast and varied knowledge assets and resources

provides them with the ability to innovate and respond to fast changing customer expectations.

KM can be described as a systematic process of managing knowledge mainly from searching, creating,

organizing, sharing, facilitating and evaluating aspects by utilizing technologies to help in decision making of

sustaining competitive advantage (Mahdi et al, 2011).

Based on the newest definition, knowledge management can be mentioned as systematic processes that help

organizations creating, sharing and applying knowledge to improve organizational performance at least.

2.3.KM Capabilities

Knowledge management (KM) capabilities are organizational mechanisms for generating knowledge

continuously; they can encourage acquiring knowledge, storing knowledge, protecting knowledge, and

facilitating knowledge sharing in an organization (Gold et al., 2001). Matopoulos et al (2009) claimed that KM

capabilities focus on the importance of setup of knowledge repositories and building a knowledge-sharing

environment for increased awareness and diffusion of e-business. Also Sandhawalia and Dalcher (2011)

mentioned knowledge sharing between individuals in their KM capabilities definition and stated that

Knowledge use is associated with people and behavior and organizations benefit when knowledge is shared in

context and according to need.

Some scholars like Gold et al (2001), Shaabani et al (2012), Manovas (2004) categorized KM capabilities to

infrastructural and process ones and introduced some similar and some different subsets.

Suggested KM capabilities in some former studies introduced in following Table.

Table.2 Suggested KM capabilities in some former studies


Gold et al (2001) KM infrastructure and

process capabilities effects on

KM and organizational

effectiveness

Process capability

Infrastructure capabilities

Khalifa & Liu (2003) Examining the relationship

between knowledge

management process

capabilities and infrastructure

capabilities


Manovas (2004) KM capabilities effects on

successful knowledge sharing

Process capability


Chuang (2004) Resource-based approach to

evaluate and test the

relationship between

knowledge management

capability and competitive

Technical capabilities

Social capabilities


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advantage

Lee & Lee (2007) Capabilities, processes and

knowledge management

performance using a

structural approach

ructure

Nguyen (2010) Knowledge management

capabilities and competitive

advantage

Process capabilities

Social and technical infrastructure

capabilities

Mills & Smith (2010) The impact of knowledge

management on

organizational performance


owledge Application


Sandhawalia &

Dalcher (2011)

Structural approach to

developing knowledge

management capabilities


nowledge Transfer


Shaabani et al (2012) Interactions among elements

of

knowledge management lead

to acquiring

core competencies



Aujirapongpan et al

(2012)

Indicators of knowledge

management capability for

KM

effectiveness

Emadzade et al (2012) Knowledge management

capabilities and




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Lin (2013) Effect of knowledge

management capabilities on

partnership

2.4.Organizational Agility

Brian Maskell (2001) defines the agility as the ability of prosperity in an environment with continued and

unpredictable changes. Vazquez-Bustelo and Avella (2006) illustrated that Mobilizeing the basic functionality

of the organization, responding to the social and environmental issues, combining various technologies, react to

changes and uncertainty and organizational coherence within and between the organizations are the main key

concepts of organizational agility.

Agility is perceived as the dominant competitive vehicle for all organizations in an uncertain and ever-changing

business environment (Tseng and Lin., 2011). Ebrahim Pour et al (2011) believe that Agility is the ability to

succeed in the changing and unpredictable environment. Izadpanah and Yaghoubi Pour (2012) stated agility is

successful identification of the principles of competition (speed, flexibility, innovation, quality and

profitability), integration of resources, and appropriate actions in the environment of knowledge with rapid

changes, by providing the customer-friendly products and services.

Agility is the ability to succeed in the changing and unpredictable environment

2.5.Organizational Agility Capabilities

Shahaei (2008) claimed that institutions require some distinct abilities in order to deal with changes, uncertainty

and unpredictable issues in their business environment.

Agility capabilities are considered as inescapable features of today’s forward-looking organizations. Those

organizations which possess such characteristic would be able to achieve competitive advantage and gain an

edge over competitors (Ebrahim Pour et al, 2011).

Some agility capabilities such as responsiveness, flexibility, speed, competency, learning etc. mentioned in

agility literature.

Suggested Organizational Agility capabilities in some former studies introduced in following Table.

Table.2. Suggested Organizational Agility in some former studies


Sharp et al (1999) Agility in U.K. industries

John et al (2001) Development of agile

manufacturing

Sharifi & Zhang

(2001)

Proposed methodology to

achieve agility

Madeline & Youssef

(2003)

The importance of human

resources in organizational

agility


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Chopra & Meindl

(2007)

Agility in Supply Chain

Management

Cost reduction

Flexibility

Quality

Fast Delivery

Readiness

Responsiveness

Jafarnejad & Shahaie

(2008)

Evaluate and improve

organizational agility

Dahmardeh et al

(2010)

Evaluation and ranking of

agility capabilities in Ghaen

cement company

Tseng & Lin (2011) Provide the conceptual model

for increasing organizational

agility

ed

Ebrahim Pour et al

(2012)

The relationship between


and agility capabilities

Bani Hashemi &

Sarani (2012)

Evaluating enterprise agility

in the cement industry

Responsiveness

Mahmoudi Maymand

et al (2012)

strategies to improve


Abesi et al (2013) Effects of organizational

agility capabilities on national

manufacturing

2.6.Organizational Innovation

Wong and Chin (2007) addressed organizational innovation as the development or adoption of an idea or

behavior into business operations that is new to the whole organization in their study.

Organizational innovation defined as the application of ideas that are new to the company, to create added value

either directly for the company or indirectly for its customers, whether the newness and added value are

embodied in products, processes, services, or in work organization, management or marketing systems

(Weerawardena, 2003; Herna´ndez-Mogollon et al, 2010).

Organizational innovation is the implementation of a new organizational method in the firm’s business

practices, workplace organization or external relations (Gunday et al, 2011).

Steiber (2012) believes that Organizational innovation is an organizational method in working practices,

organizing work environment and external relations which are new for organization, and tends to improve

organizational performance.

Camisón and Villar-López (2012) preferred OECD (2005) definition of organizational innovation which

considered OI as the implementation of a new organizational method in a firm's business practices, workplace

organization, or external relationships.

2.7.Organizational Innovation Capabilities


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Intelligence and creativity, the ability of learning and knowledge creation introduced as organizational

innovation capabilities in Law (2004 ) research. Lin (2006) outlined changing organizational structure and

processes as main organizational innovation capabilities. Herna´ndez-Mogollon et al (2010 ) argued that the

most important organizational innovation capability is change.

Recent studies in the field of organizational innovation considered it as a social process leads to major changes

in the organization (Ho, 2010).

Li and Liu (2013) mentioned in their study of the impact of leadership on organizational innovation capabilities

and innovation performance, research and development, production, marketing and as organizational innovation

capabilities of the organization.

- KM, Organizational Innovation, Organizational Agility and Sustainable competitive advantage Inter-

relationships

- KM and Sustainable competitive advantage

KM has an important role in sustainable competitive advantage achieving and considered as a key developer for

SCA in the literature. Atkočiūnienė (2013), Chowtupalli & Rafi (2013), Marjanovic and Freeze (2012), Mahdi

et al (2011), Bhatti et al (2010), Kibet et al (2010) and many other researchers in past decade mentioned KM

and KM capabilities as main sustainable competitive advantage provider.

Nasimi et al (2013) believe that knowledge management is the competitive advantage of today's business world,

Although knowledge management is faced with numerous challenges, but with lower costs and convenient

dealing with environmental changes considered as sustainable competitive advantage.

2.8.Organizational Agility and Sustainable competitive advantage

Chen (2012), Mason (2010), Liu (2010), Reeves and Deimler (2009), Lee et al (2008) and other scholars

introduced organizational agility as the basic feature for survival and long term competitiveness. Agility is

perceived as a dominant strategy for all organizations a competitive edge in an ever-changing business

environment of high uncertainty (Tseng & Lin, 2011).

2.9.Organizational Innovation and Sustainable competitive advantage

Organizational innovation which is based on the changing environment and the highly competitive market leads

to sustainable competitive advantage (Ganter & Hacker, 2013).

Weerawardena and Mavondo (2011), Matthews and Becker (2009), García-Morales et al (2008) and

Weerawardena (2003) considered organizational innovation as main factor for sustainable competitive

advantage achieving.

2.10.KM and Organizational Agility

Many researchers such as Zyngier and Owen (2013), Kamhawi (2012), Chuang et al (2010) and Ashrafi et al

(2005, 2006) introduced knowledge management as an essential resource to create and enhance enterprise

agility. Yaghoubi and Rahat Dahmardeh (2011) enumerated Knowledge management as the most important

factor and facilitator for organizational agility.

2.11.KM and Organizational Innovation

Through an established system for knowledge management in the organization, effective use of resources to

achieve organizational goals and provided organizational innovation is facilitated (Chang and Lee, 2008). Many

other scholars mentioned the catalyst and facilitation role of KM in organizational innovation (Aboelmaged,

2012; Esterhuizen et al, 2012; Arling & Chun, 2011; Gunsel et al, 2011; Weijing, 2010; Zhou et al, 2010;

Johannessen, 2008).

2.12.Organizational Innovation and KM


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Zhou et al (2010) in their study around the process of knowledge management and continuous innovation,

stated that organizational innovation reinforces knowledge management. Researches in studying the role of

Organizational Innovation in KM is not grown yet.

2.13.Organizational Innovation and Organizational Agility

Kamhawi (2012) in his study about KM and organizational capabilities mentioned that organizational

innovation reinforces organizational agility and Jorfi et al (2013) in their researches around surveying the

relationship between organizational innovation and agility in Ahvaz Ramin Power Station indicated that

organizational innovation empowers organizational agility.

3.Research Methodology

This study is a descriptive qualitative research that uses expert panel views for suggesting and validating the

provided conceptual model. For this purpose literature of sustainable competitive advantage, knowledge

management, organizational innovation and agility reviewed. Then based on selected SCA approach, a

conceptual model presented and in some interviewing sessions with five related experts analyzed and modified.

Primary conceptual model presented after modification and a questionnaire included of 13 questions designed

for final model validation. Questionnaire validity confirmed by some experts. Questionnaire reliability

considered based on in Cronbach's alpha method Target population for questionnaire answering was experts of

strategic management that were very familiar with KM, Organizational innovation and agility concepts. Some

interview sessions conducted with 30 experts and questionnaire answered after these sessions. Answered

questionnaires analyzed with SPSS version (19) software and results presented.

Table. 3. Questionnaires reliability statistics

Reliability Statistics

Cronbach's

Alpha

N of Items

.708 13

4.Conceptual Model

Conceptual model presented in three layer. In layer 1, knowledge management, organizational agility and

innovation was considered factors to create sustainable competitive advantage. In layer 2, based on dynamic

capabilities view, knowledge management, organizational agility and innovation capabilities was considered. In

layer 3, knowledge management, organizational agility and innovation capabilities inter-relationships was

considered.

- Layer 1

Figure 1. First layer of model

To achieve sustainable competitive advantage, knowledge management, organizational innovation and

organizational agility have direct role.

Knowledge management have direct role in organizational innovation and organizational agility.

Organizational innovation have direct role in knowledge management.

KM

OA

OI

SCA


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- Layer 2

Figure 2.Second layer of model

4.1. Knowledge management capabilities

According to literature review two types of infrastructure and process capability considered in many former

studies. In this study based on former researches and regards to shaabani et al (2012) study, following

capabilities considered as KM capabilities.

Process Capabilities

Process capabilities relate to KM processes effects on organizational knowledge resources in organization

performance areas.

- Knowledge Acquisition

Process of achieving and regulating individual knowledge, structure and relate to system organizational

knowledge system

- Knowledge Conversion

Infrastructure Capabilities

OI Capabilities

Organizational

structure and processes

change

Change management

practices

Intelligence

Knowledge Creation

Effective learning

OA Capabilities

Responsiveness

Flexibility

Speed

Competency

Knowledge Acquisition

Knowledge Conversion

knowledge Application

Knowledge Protection

Technology

Structure

Human

Culture

SCA

KM Capabilities



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Social process in which people communicate and interact with each other and the quality and quantity of

explicit and tacit knowledge in the organization increases.

- Knowledge Application

Activities through the use of organizational capabilities in the creation, reproduction and delivery of products

and services can be sold back to the market

- Knowledge Protection

Includes protection against the illegal and inappropriate use of organizational knowledge and knowledge

snatching

4.2.Infrastructure Capabilities

Organizational infrastructure that increases the efficiency of the knowledge management activities.

- Technological

Enabling tools to facilitate sharing, turned demonstrate and converting knowledge as well as improving human

resources skills in knowledge acquisition

- Structural

The structural position of organization that encourages knowledge related activities

- Cultural

A system of beliefs and values of the organization that is intended to determine how people perform.

- Human

Human resources skills and expertise in the specific areas and shows the ability to use knowledge in interaction

with others.

4.3.Organizational Agility Capabilities

According to literature most of studies considered responsiveness, competency, flexibility and speed as

organizational agility capabilities.

Responsiveness

Including identifying changes needed to respond quickly and improve responding reactive or proactively. This

capability includes the following steps and procedures:

- To feel, to understand and predict changes

- Immediate response to changes

- Find ways of improving

- Product and services updates

- Customer feedback

Competency

Capabilities that help organization to efficiently and effectively achieve its visions. Some of these capabilities

are as follows:

- Strategic perspective

- Having favorable technology

- Product and service quality

- Reduced costs

- Management of change

- People with sufficient skilled and competent

- Increasing the efficiency of production operations

- Internal and external organization cooperation

Flexibility

Ability to perform multiple tasks and achieve goals using a variety of options are available. These capabilities

include:


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- Flexibility in production volume

- Flexibility in production variety

- Flexibility of structure

- Flexibility in staffing

Speed

It refers to the speed of operation. And include the following:

- Rapid introduction of new products and services to market

- Fast delivery of products and services

- Speed of R&D operations

4.4.Organizational Innovation Capabilities

According to previous studies, a combination of intelligence, creativity, effective learning, organizational

structure and process and management practices change based on Law Studies (2004), Lin (2006) and

Hernandez-Mogollon et al (2010) has been desired as organizational innovation capabilities in this research.

Changing in organizational structure and processes

Structural change towards virtual and flat structure and the Business Process Reengineering for adapting to

changes in current business environment

Changing management practices

Change management patterns from autocratic ones to participative and aggressive management regime based on

democratic management, organizational maturity, independence and freedom of action in order to create fertile

creativity, organization and knowledge-based management

Intelligence

Organizational intelligence allows people at all levels of an organization to access information, interact and

analyze them to manage the business, improve efficiency to discover success factors and realize efficient

organizational operations.

Knowledge creation

Knowledge creation is a complex, multidimensional and dynamic process and included of institutional capacity

in the creation and circulation of knowledge within the organization, products, services and systems, including

the creation of new knowledge by combining knowledge from different sources within the enterprise together

and analyze information.

Effective learning

Effective learning through sharing insight, knowledge, experience and mental models of organization members

is obtained. Effective learning is based on knowledge and experience that exists in the memory and included of

the mechanism of such policies, strategies and models that are based on stored knowledge.


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OA Capabilities

Responsiveness

Flexibility

Speed

Competency

KM Capabilities


Infrastructure Capabilities

Knowledge Acquisition

Knowledge Conversion

knowledge Application

Knowledge Protection

Technology

Structure

Human

Culture

OI Capabilities

Organizational structure and

processes change

Change management

practices

Intelligence

Knowledge Creation

Effective learning

Facilita

te

Facilita

te

Rein

f

orce

Rei

nfo

rce

In

t

egr

ati

on

SCA

- Layer 3


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Figure 3.Third layer of model

4.5.Facilitate organizational innovation capability through knowledge management capabilities

Knowledge management capabilities through interaction implicit and explicit knowledge to create new

knowledge and to create the infrastructure and information technology systems, information dissemination and

integration of related data, will facilitate the creation of organizational innovation capability.

On the other hand, focus on effective learning and organizational capabilities of knowledge management

emphasizing knowledge and deepen its role in enhancing organizational learning, helps to build innovation

capabilities.

4.6.Facilitate organizational agility capabilities through knowledge management capabilities

Through effective management of three types of knowledge, organizations will provide the foundation to deal

with the changing market. For example, the creation and transfer of knowledge helps organizations to identify

changes in customer preferences and tastes and needs of their clients to pay. After receiving information about

environmental changes, based on knowledge of production processes, organizations change products and

services processes, and ultimately to the major changes in the management of the organization to respond

quickly and appropriately to changes in the environment will be facilitated.

4.7.Reinforcing organizational agility capabilities through innovation capabilities

Organizational innovation capabilities included of intelligence, knowledge creation and effective learning

provide institutional competence to respond appropriately and timely to external changes and reinforce this

through improved organizational agility.

Changing management approaches, in addition to changing structure and processes enhance organizational

flexibility and speed that consisted of basic features of the organizational agility.

4.8.Reinforcing knowledge management capabilities through organizational innovation capabilities

Organizational innovation creates organizational capabilities for knowledge creation in the organization and

effective learning that enhances the process capabilities of knowledge management and the new approach to

flexible organizational structures and management in organizations, improve knowledge management

infrastructure capabilities.

4.9.Integration of knowledge management, organizational agility and innovation capabilities to achieve


Integration consisted of the four process, judgmental, system and developmental dimensions. Process

integration includes creating awareness of the established model, a consulting background, characterize and

organization of the model and its implementation strategies. Judgmental integration balances management

theories, and moral support of senior management and concerned collective decision-making. Public

participation in decision making, implementation will facilitate decision -making.

Development integration refers to personal and social recognition and collective commitment based on

personal, group and organizational commitment. System integration balance between internal processes and

external organizational infrastructure for creating a collective commitment to implement the organization's

decisions.

5.Discussion

5.1.Data Analysis

Descriptive Statistics

Demographic variables including age, gender, and education level, academic degree, level of work / research

experience and field of Study.


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Summary of descriptive statistics illustrated in Table.3.

Table.4.Summary of descriptive statistics

Demographic variables Maximum Minimum

Age Above 45 (%30) 30-35 (%6.7)

Gender Male (%96.7) Female (%3.3)

Education PhD (%73.3) MSc (%26.7)

Academic degree Assistant Professor

(%33.3)

Professor and Lecturer (%3.3)

Field of Study Management (%66.6) Quality Engineering (%3.3)

Work/Research experience More than 9 years

(%43.3)

3-6 years (%10)

Descriptive statistics for model validation criteria

In this section total distribution of each of 13 questions in questionnaire proposed.

Table.5. Distribution of each of 13 questions

Questions

Questions

description

Strongly

agree

Agree medium Disagree Strongly

disagree

1 Relations of model

layers

6 21 3 0 0

2 Model layers

classifications

6 21 3 0 0

3 Using the dynamic

capabilities approach

to knowledge

management,


and innovation for

SCA

13 15 2 0 0

4 Knowledge

management

capabilities introduced

9 18 3 0 0

5 Organizational

innovation capabilities

introduced

10 16 4 0 0

6 Organizational agility

capabilities introduced

7 22 1 0 0

7 Facilitate


capabilities through

knowledge

management

capabilities

6 18 6 0 0

8 Facilitate

organizational

innovation capability

through knowledge

management

capabilities

8 17 5 0 0

9 Reinforcing



organizational

innovation capabilities

8 18 4 0 0


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10 Reinforcing



knowledge

management

capabilities

6 19 5 0 0

11 Model comprehension 5 20 5 0 0

12 Presentation on the

role of knowledge

management,


and innovation to

achieve sustainable


8 17 5 0 0

13 Operational aspects 17 5 7 1

5.2.Validate the proposed conceptual model

To assess the validity of the proposed research, interviews and questionnaires were used, so that at first through

interviews and meetings with experts and professors in the field of strategic management, knowledge

management, innovation and organizational agility review the primary model and battered the model based on

their authentication. Secondly, through questionnaires and meeting sessions with experts attempted to obtain

data needed to assess the validity of the model.

The proposed model is validated using the non-parametric method

K-S test for normality

K-S test indicated that data has not normal distribution.

Table.6. Normality test using K-S

One-Sample Kolmogorov-Smirnov Test

Q1 Q2 Q3

N 30 30 30

Normal Parametersa,b

Mean 4.1000 4.1000 4.3667

Std. Deviation .54772 .54772 .61495

Most Extreme Differences

Absolute .372 .372 .291

Positive .372 .372 .291

Negative -.328 -.328 -.282

Kolmogorov-Smirnov Z 2.040 2.040 1.595

Asymp. Sig. (2-tailed) .000 .000 .012


Q4 Q5 Q6

N 30 30 30


Mean 4.2000 4.2667 4.2000

Std. Deviation .61026 .63968 .48423


Absolute .328 .295 .427

Positive .328 .295 .427

Negative -.272 -.241 -.306


Asymp. Sig. (2-tailed) .003 .011 .000


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82


Q7 Q8 Q9

N 30 30 30


Mean 4.0000 4.1000 4.1333

Std. Deviation .64327 .66176 .62881


Absolute .300 .293 .317

Positive .300 .293 .317

Negative -.300 -.273 -.283


Asymp. Sig. (2-tailed) .009 .011 .005


Q10 Q11 Q12

N 30 30 30


Mean 4.0333 4.0000 4.1000

Std. Deviation .61495 .58722 .66176


Absolute .322 .333 .293

Positive .322 .333 .293

Negative -.312 -.333 -.273


Asymp. Sig. (2-tailed) .004 .003 .011


Q13

N 30


Mean 3.8667

Std. Deviation .73030


Absolute .306

Positive .261

Negative -.306

Kolmogorov-Smirnov Z 1.675

Asymp. Sig. (2-tailed) .007

a. Test distribution is Normal.

b. Calculated from data.

Binomial test

Table.7. Binomial test

Binomial Test

Category N Observed Prop. Test Prop. Exact Sig. (1-

tailed)

Q1

Group 1 <= 3 3 .1 .6 .000a

Group 2 > 3 27 .9

Total 30 1.0

Q2

Group 1 3 .1 .6 .000a

Group 2 > 3 27 .9

Total 30 1.0

Q3 Group 1 2 .1 .6 .000a


M. Jafari et al

83

Group 2 > 3 28 .9

Total 30 1.0

Q4

Group 1 <= 3 3 .1 .6 .000a

Group 2 > 3 27 .9

Total 30 1.0

Q5

Group 1 <= 3 3 .1 .6 .000a

Group 2 > 3 27 .9

Total 30 1.0

Q6

Group 1 <= 3 1 .0 .6 .000a

Group 2 > 3 29 1.0

Total 30 1.0

Q7

Group 1 <= 3 6 .2 .6 .000a

Group 2 > 3 24 .8

Total 30 1.0

Q8

Group 1 <= 3 5 .2 .6 .000a

Group 2 > 3 25 .8

Total 30 1.0

Q9

Group 1 <= 3 4 .1 .6 .000a

Group 2 > 3 26 .9

Total 30 1.0

Q10

Group 1 <= 3 5 .2 .6 .000a

Group 2 > 3 25 .8

Total 30 1.0

Q11

Group 1 <= 3 5 .2 .6 .000a

Group 2 > 3 25 .8

Total 30 1.0

Q12

Group 1 <= 3 5 .2 .6 .000a

Group 2 > 3 25 .8

Total 30 1.0

Q13

Group 1 <= 3 8 .3 .6 .000a

Group 2 > 3 22 .7

Total 30 1.0

a. Alternative hypothesis states that the proportion of cases in the first group < .6.

Validation results of the binomial test indicates that the overall model has been approved and validated by

experts, of course, in final question of the questionnaire based on the operational aspect of the model, the

experts agreed were less than other questions.

6.Conclusion

Due to the dynamic capabilities of an organization to achieve sustainable competitive advantage, new

approaches in the field of strategic management is considered. According to previous studies, knowledge

management, organizational agility and innovation, including resources that can stabilize and improve the

organization's competitive position.

Therefore using the capabilities of KM, OI and OA simultaneously, reinforce understanding, response and

knowledge-based management approaches to suit the need of restructuring in accelerated change in the

competitive environment and help organizations sustainable competitive advantage achieving.

7.Future Studies


M. Jafari et al

84

• Integrate change management processes in the model can also incorporate a new approach to achieve

sustainable competitive advantage of the dynamic features.

• Model development and consideration of processes of knowledge management, organizational agility and

innovation as well as capabilities can also be considered.

• In corporate life cycle and the degree of maturity of the organization can also consider the other factors in the

model can be noted.

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