Organizational structure, sense making activities and SMEs’ competitiveness

Valaei, Naser * (2017) Organizational structure, sense making activities and SMEs’ competitiveness. VINE Journal of Information and Knowledge Management Systems, 47 (1). pp. 16-41. ISSN 2059-5891

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Purpose The purpose of this paper is to propose a model of competitiveness for small and medium-sized enterprises (SMEs) by investigating the structural relationship between organizational structure, knowledge quality (KQ) dimensions, improvisational creativity, compositional creativity and innovation in an emerging market – Malaysia – grounding in sense-making and organizational improvisational theories. Design/methodology/approach A total of 358 valid questionnaires administered among SMEs’ top management were used in examining the measurement model and structural relationship between latent constructs using partial least squares (PLS) path-modelling approach. Findings The findings indicate that a flat organizational structure influences business entities’ sense-making activities in the way they realize the intrinsic value of knowledge (intrinsic KQ) and take action to apply the organizational knowledge (actionable KQ). These sense-making activities are also conducive to SMEs’ improvisational creativity, compositional creativity and innovative capabilities. All KQ dimensions are positively interrelated, thus supporting sense-making theory. Originality/value A sustainable competitive advantage for SMEs requires a setting that is based on a lean, decentralized and cooperative organizational structure that shapes organizational KQ. As a contribution to the literature, accessibility KQ is introduced as a KQ dimension. Even though previous research was unclear on the reflectiveness/formativeness of KQ, by applying confirmatory tetrad analysis-PLS, this study empirically supports that KQ is a formative construct.

Item Type: Article
Uncontrolled Keywords: organizational structure; sense making; knowledge-based innovation; compositional creativity; improvisational creativity; knowledge quality
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Sunway University > Sunway University Business School > Dept. Marketing
Depositing User: Ms. Molly Chuah
Date Deposited: 02 Nov 2017 06:46
Last Modified: 03 Jul 2019 09:19

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