This chapter introduces the framework and causal model of organizational culture, organizational learning, knowledge management, and job satisfaction. It argues that dimensions of organizational culture, organizational learning, and knowledge management have mediated positive effect on job satisfaction. Knowledge management positively mediates the relationships between organizational culture and job satisfaction and between organizational learning and job satisfaction. Organizational culture is positively related to organizational learning. Furthermore, the author hopes that understanding the theoretical constructs of organizational culture, organizational learning, knowledge management, and job satisfaction through the use of the framework and causal model will not only inform researchers of a better design for studying organizational culture, organizational learning, knowledge management, and job satisfaction, but also assist in the understanding of intricate relationships among different factors.
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Knowledge management has become one of the most important trends in modern businesses across the globe (Pandey & Dutta, 2013). A general goal of knowledge management is to improve the systematic handling of knowledge and potential knowledge within the organization (Heisig, 2009). Knowledge must be refreshed by the organization, and therefore, knowledge networks are needed to ensure employees have opportunities to share knowledge (McGurk & Baron, 2012). This requires certain processes to capture organizational learning (McGurk & Baron, 2012). Labedz, Cavaleri, and Berry (2011) stated that knowledge management processes that have been integrated into work processes can be used to correct dysfunctional organizational behavior. Organizations adapt from their experiences when they have integrated processes to support what they have learned (Labedz et al., 2011). The need for techniques and management models for regional knowledge-based management remains topical and it is on the increase (Sotarauta, Horlings, & Liddle, 2012; Uotila, Melkas, & Harmaakorpi, 2005; Zhao & Ordóñez de Pablos, 2011). The role of knowledge has been studied from the managerial perspective in several streams of academic literature and no common title for the wide knowledge-related research field exists (Lönnqvist & Laihonen, 2013). Knowledge has been used as an effective tool to improve the firm’s functioning (Perez-Lopez & Alegre, 2012; Zaim, Ekrem, & Selim, 2007).
Organizational knowledge from learning process will help members in organization discern competitive opportunities (Tuan, 2013). Knowledge management has been shown to be a powerful ingredient in the success of organizations (Davenport & Prusak, 1998; Desouza & Awazu, 2006). Knowledge management is aimed at getting people to innovate, collaborate, and make correct decisions efficiently; it is aimed at getting people to act by focusing on high-quality knowledge (Plessis, 2005). Knowledge is considered the most important resource in organizations (Choe, 2004). Knowledge management is a systematic and integrative process of coordinating organization-wide activities of acquiring, creating, storing, sharing, diffusing, developing, and deploying knowledge by individuals and groups in the pursuit of major organizational goals (Rastogi, 2000). It is necessary for the existence of organizational culture to support the organizational learning so that it is available to obtain, improve, and transfer the required knowledge with ease (Hall, 2001; Pool, 2000). Organizational learning is the development of knowledge related to the relationships among actions, consequences, and work environment. Learning is the power of growth, and individual is also the resource of business growth (Duncan & Weiss, 1979). The capability of controlling information means a learning achievement (Hong, 2001).