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Organizational Design Research Paper Review

Harshit Kumar Pandey(2016PGP023)

1. Title and reference of the paper: -


Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of
knowledge management; Wei Zheng, Baiyin Yang, Gary N. McLean; Journal of Business Research

2. Introduction: -
This article deals with the understanding the intervening mechanism that explains the paths of
influence from organizational context and strategy to organizational effectiveness. Knowledge
management potentially plays a role in connecting the organizational context and strategy to
organizational effectiveness. The article discusses the potential mediating effect of knowledge
management on the relationship connecting Organizational context and strategy to organizational
effectiveness. This article attempts to detect and explain one of the mechanisms through which
organizational contextual and strategic factors are mobilized to achieve higher levels of organizational
effectiveness.

3. Objectives of the study and hypotheses: -


The objective of this study is:

To examine knowledge management as a mediating mechanism between general


organizational context and organizational effectiveness

To construct a picture of how the Organizations cultural, strategic and structural


characteristics effects the knowledge management and ultimately organizational effectiveness

To study the connection between knowledge management and organizational level


performance

The various hypotheses under consideration are:

1. Knowledge management (including knowledge generation, knowledge sharing, and


knowledge utilization) relates positively to organizational effectiveness

2. Organizational culture (adaptability, consistency, mission, and involvement) relates positively


to organizational effectiveness

3. Organizational culture (adaptability, consistency, mission, and involvement) relates positively


to knowledge management.

4. Knowledge management fully mediates the relationship between organizational culture and
organizational effectiveness

5. Organizational structure (centralization) relates negatively to organizational effectiveness

6. Organizational structure (centralization) relates negatively to knowledge management

7. Knowledge management partially mediates the relationship between organizational structure


and organizational effectiveness
8. Organizational strategy (analysis, defensiveness, futurity, and pro-activeness) relates
positively to organizational effectiveness.

9. Organizational strategy (analysis, defensiveness, futurity, and pro-activeness) relates


positively to knowledge management.

10. Knowledge management partially mediates the relationship between organizational strategy
and organizational effectiveness.

4. Variables which have been considered in the study: -


The variables used in the study were adapted from the existing instruments used in the past research.
They are Organizational Culture, Organizational Structure, Organizational Strategy, Knowledge
management effectiveness and Organizational effectiveness.

5. Measurement (how variables have been measured, name of the


questionnaire): -
The variables were measured as:

Organizational Culture: This variable was measured on four functional parameters-


adaptability, consistency, involvement and mission. The adapted scale from Denison and his
colleagues (Denison, 1990; Denison and Mishra,1995; Denison and Neale, 1996; Fey and
Denison, 2003) measures to what extent an organization is perceived to display the four
dimensions of characteristics.

Organizational structure: It was measured by the degree of centralization. The Ferrell and
Skinner (1988) scale measures the degree of centralization organization based on
respondents agreement with statements such as even quite small matters have to be
referred to someone higher up for a final answer.

Organizational Strategy: Venkatraman's (1989) STROBE (Strategic Orientation of Business


Enterprise) framework was used to represent an organizational strategy. STROBE measures
the extent to which the respondents perceive their organization's strategy as displaying four
characteristics including analysis, defensiveness, futurity, and pro-activeness

Knowledge management effectiveness: It was adapted from Gold et al. (2001) to assesses
respondents perception of the existence of the three knowledge management processes of
capabilities, processes, and performance

Organizational effectiveness: It was adopted from Lee and Choi (2003) which capture
organizational members perceptions about the degree of overall success, innovativeness,
growth rate, profitability, and market share of the organization in comparison with the major
competitors

6. Sample: -
The respondents represented 301 organizations. Seventy-one percent of the organizations were in
the service sector, 28.7% in manufacturing, and 0.3% in the agricultural sector. Among them 46.6%
had an employee base of between 100 and 1000, 22.3% between 1000 and 10,000, 15.5% between
10,000 and 100,000, 13.5% between 1 and 100, and the remaining 2% over 100,000.
7. Data collection: -
The responses were collected from two HR organizations in a mid-western metropolitan area which
constituted of about 1585 members. A mix of web-based and mail survey was carried out for a
sampling of a total of 384 responses, of which 218 were by mail (56.8%), and 166 were web
responses (43.2%). Among the respondents, 37.4% were at the middle management level, 27.9% at
the senior management level, 26.5% at the non-management level, and 8.2% at the supervisory level.

8. Data analysis (what statistical techniques have been used for data
analysis): -
An MANOVA test was conducted on the survey results, and no statistical differences were detected
between the two samples. For assessing the nonresponse bias (Amstrong and Overton, 1977), all the
responses received within the first two weeks were treated as early responses and the rest as late
respondents. The two-week cut-off was based on the observed pattern of responses received. No
statistical difference was observed between the two samples. After that Jreskog and Srbom (1989),
structural equation modelling (SEM) was conducted with the LISREL program for assessing the
confirmatory measurement models (factor analysis) and confirmatory structural models (path
analysis).

9. Results: -
Confirmatory Measurement model: The constructs are consistent with a researcher's
hypothesized measurement model.
Confirmatory Structural model: The hypothesized model demonstrates a better model fit than
the three alternative models because while other models do and chi-square/df ratios in the
alternative models are slightly larger than that of the hypothesized model indicating that the
hypothesized model fits the data slightly better than the rest
The hypothesis testing validated that knowledge management, organization culture structure,
and strategy are all significantly related to organizational effectiveness

10. Conclusion: -
This research provides empirical evidence to the connection between knowledge management and
organizational effectiveness and suggests that knowledge management could be an intervening
mechanism between organizational context and organizational effectiveness. Knowledge
management is not only an independent managerial practice, but also a central mechanism that
leverages organizational cultural, strategic, and structural influence on organizational effectiveness.
knowledge management was found to fully mediate organizational culture's influence on
organizational effectiveness. This finding suggests that how well knowledge is managed is largely
associated with how well cultural values are translated into values of the organization.