Exploring the Relationship between Organizational Memory and Business Innovation

Exploring the Relationship between Organizational Memory and Business Innovation

Adel Alhashem, Amin A. Shaqrah
Copyright: © 2012 |Pages: 15
DOI: 10.4018/ijkbo.2012070102
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This study investigated significant contribution to organizational memory (OM) and business innovation (BI) field as an integration strategy to developed conceptual model. Proposed model incorporated principles of OM strategies (i.e., sharing knowledge, representing knowledge, and saving knowledge) and BI outcomes (i.e., new ideas, new services, and new processes) potentially powerful competitive strategy and contributing to improve competitive advantage at Jordanian banks sector. Structural equation modeling (SEM) was used to infer fitting proposed model. This study has reached to the following: There is a positive relationship between organizational memory and business innovation, and there is a significant statistical impact of organizational memory upon business innovation. In addition, the study recommended that the researched Jordanian banks should pay more attention to the organizational memory and business innovation to gain competitive advantage.
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Study Objectives

The motivation for this study stems from researcher concern of organizational memory in the Jordanian business environment. Studying the concept of OM and innovation comparing with practical practices in Jordanian banks has an important contribution in Jordanian economic growth. This study represented a contribution in assessing the extent to which Jordanian banks applied the construct of OM and posses the dimension of business innovation. Moreover, there is lack of similar studies in the Arab world and in most developing countries. On the other hand, there is an essential need for a scanning of the rich theoretical and empirical literature of OM, and innovation in Jordanian environment. The following are main objectives:

  • To develop a theoretical framework for dependent and independent variables.

  • To investigate the level of organizational memory implementation in Jordanian banks.

  • To investigate the level of business innovation implementation in Jordanian banks.

  • To analyze the impact of organizational memory on business innovation in Jordanian banks.

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