Impact of Knowledge Creation on Organizational Performance in the Service Organizations of Bangladesh

Abstract

This study is conducted to identify the relationship between knowledge creation process and organizational performance with mediating role of organizational creativity. A Self-administered questionnaire survey among 270 the top and mid-level managers of selected service organizations in Bangladesh was used to collect data. Multiple regression method was employed to determine the relationship among knowledge creation process, organizational creativity, and organizational performance. Also, Baron and Kenny (1986) and Sobel (1982) approach were used to test the mediating role of organizational creativity. It is found from the result that knowledge creation process has significant positive association with organizational performance. Also, knowledge creation process is found to have significant positive association with organizational creativity. Furthermore, it is confirmed that organizational creativity has significant positive association with organizational performance. Lastly, organizational creativity is found to mediate the relationship between knowledge creation process and organizational performance. Based on the findings, conclusions, implications, limitations of the research were drawn and future research scope is suggested.