Managing Knowledge Capabilities for Strategy Implementation Effectiveness

Abstract

The creation and the use of knowledge have increasingly been regarded as important issues for management. A wide range of studies have investigated this topic during the past decade. Notwithstanding these contributions, very little systematic attention has been paid to the linkages between knowledge capabilities and strategy implementation. Drawing from knowledge capabilities theory and strategy implementation literature, two aspects of knowledge capabilities in an organization and their effect on strategy implementation effectiveness are investigated: knowledge process capabilities (KPC) and knowledge infrastructure capabilities (KIC). This study hypothesized that KPC affects strategy implementation effectiveness (SIE) and that KPC affects KIC. The third hypothesis proposed the effect of KIC on SIE by examining the mediating role played by KIC in linking KPC and SIE. 1,321 middle-managers were sent questionnaires via electronic mail and 162 were returned. The findings indicated the presence of a mediation effect of KIC on the relationship between KPC and SIE. This study provides guidelines for middle-managers to better understand how to develop activities of KPC and KIC for SIE. It is hoped that the results of this study will enhance our understanding of the strategic importance of knowledge in an organization, especially in the area of strategy implementation.