Entrepreneurial Orientation and Organizational Performance of Online Business in Malaysia: The Mediating Role of the Knowledge Management Process
Abstract
:1. Introduction
- Is there a significant relationship between EO and KMP in Malaysian online businesses?
- Is there a significant relationship between KMP and OP in Malaysian online businesses?
- Does KMP mediate the relationship between EO and OP in Malaysian online businesses?
2. Literature Review
2.1. Entrepreneurial Orientation (EO)
2.2. Organizational Performance (OP)
2.3. Online Business (OB)
2.4. Knowledge Management Process (KMP)
2.5. Resource-Based Theory (RBT), and Knowledge-Based View—(KBV)
2.6. The Relationship between EO and KMP
2.7. The Relationship between KMP and OP
2.8. KMP as a Mediator in the Relationship between EO and OP
3. Research Methodology
3.1. Research Design and Sample
3.2. Measures
4. Findings
4.1. Construct Validity
4.2. Common Method Bias
4.3. Direct Relationship
4.4. Mediating Relationship
4.5. Determination of Coefficient (R2), Effect Size (f2) and Predictive Relevance (Q2)
5. Discussion
5.1. Theoretical Implications
5.2. Practical Implications
5.3. Limitations and Future Research
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Construct | Measurement Items | Loading | CR | AVE |
---|---|---|---|---|
Entrepreneurial Orientation (EO) | EO1—Our firm often likes to try new and unusual activities that are not typical but not necessarily risky. | 0.763 | 0.934 | 0.703 |
EO2—Our firm prefers a strong emphasis in projects on unique, one-of-a-kind approaches rather than revisiting tried and true approaches used before. | 0.730 | |||
EO3—Our firm prefers to try our own unique way when learning new things rather than doing it like everyone else does. | 0.714 | |||
EO4—Our firm favours experimentation and original approaches to problem-solving rather than using methods others generally use for solving their problems. | 0.801 | |||
EO5—Our firm usually acts in anticipation of future problems, needs or changes. | 0.766 | |||
EO6—Our firm tends to plan ahead on projects. | 0.870 | |||
EO7—Our firm prefers to “step up” and get things going on projects rather than sit and wait for someone else to do it. | 0.738 | |||
EO8—Our firm likes to take bold action by venturing into the unknown. | 0.810 | |||
EO9—Our firm is willing to spend a lot of time on something that might yield a high return. | 0.776 | |||
EO11—Our firm is willing to invest a lot of money on something that might yield a high return. | 0.854 | |||
EO12—Our firm tends to act “boldly” in situations where risk is involved. | 0.794 | |||
EO13—Our firm is most likely to initiate actions that competitors will respond to. | 0.755 | |||
EO14—Our firm will be aggressively and intensively competitive rather than making no special effort to take business from the competition. | 0.765 | |||
EO16—Our firm will use alternative strategies to challenge the competitors. | 0.750 | |||
EO17—Our firm supports the efforts of individuals/teams that work autonomously rather than relying on others to guide their work. | 0.722 | |||
EO18—Our firm receives best results when individuals/teams provide motivation for pursuing business opportunities. | 0.805 | |||
EO19—Our firm pursues business opportunities without obtaining approval from others. | 0.772 | |||
EO20—Our firm plays a major role in identifying and selecting the entrepreneurial opportunities to pursue new markets. | 0.766 | |||
Knowledge Management Process (KMP) | KMP1—Our firm has processes for acquiring knowledge about our customers. | 0.621 | 0.927 | 0.719 |
KMP2—Our firm has processes for acquiring knowledge about our suppliers. | 0.773 | |||
KMP3—Our firm has a process for acquiring knowledge about new products/ services within our firm. | 0.850 | |||
KMP4—Our firm has a process for acquiring knowledge about competitors within our firm. | 0.799 | |||
KMP5—Our firm has processes for generating new knowledge from existing knowledge. | 0.827 | |||
KMP6—Our firm treats people’s skills and experiences as a very important part of our knowledge assets. | 0.801 | |||
KMP7—Our firm has venues for employees to share knowledge and learn from each other in the firm. | 0.818 | |||
KMP8—Our firm shares information and knowledge with employees. | 0.853 | |||
KMP9—Our firm has a great deal of face-to-face communication with employees. | 0.864 | |||
KMP12—Our firm has processes for applying knowledge learned from experiences. | 0.819 | |||
KMP13—Our firm has processes for using knowledge in development of new products/services. | 0.828 | |||
KMP14—Our firm has processes for using knowledge to solve new problems. | 0.822 | |||
KMP15—Our firm uses knowledge to improve efficiency. | 0.814 | |||
Organizational Performance (OP) | OP1—Our firm has more repeat sales. | 0.846 | 0.874 | |
OP2—Our firm can easily see repeat clients. | 0.833 | |||
OP3—Our firm ensures that customers’ product and/or service preferences are satisfied. | 0.846 | |||
OP4—Our firm delivers products and/or services that are exactly what customers want. | 0.915 | |||
OP5—Our firm delivers products and/or services that exceed customers’ expectations. | 0.805 | |||
OP6—Our firm’s employees like their jobs in this company. | 0.765 | |||
OP7—Our firm’s employees do not intend to work for a different company. | 0.770 | |||
OP8—Our firm uses up-to-date or new technology in the process. | 0.753 | |||
OP9—Our firm has enough new products introduced to the market. | 0.774 | |||
OP10—Our firm is able to produce products with novelty features. | 0.696 | |||
OP11-The quality of our firm’s products/services compares well with competing products/services. | 0.785 | |||
OP13—Sales growth. | 0.772 | |||
OP15—Employment growth. | 0.711 | |||
OP16—Return on investment (ROI). | 0.768 | |||
OP17—Gross profit margin. | 0.773 | |||
OP18—Return on asset (ROA). | 0.811 |
Construct | Entrepreneurial Orientation | Knowledge Management Process | Organizational Performance |
---|---|---|---|
Entrepreneurial Orientation | |||
Knowledge Management Process | 0.116 | ||
CI 0.90 | |||
(0.131, 0.195) | |||
Organizational Performance | 0.103 | 0.577 | |
CI 0.90 | CI 0.90 | ||
(0.133, 0.214) | (0.511, 0.671) |
Structural Paths | Path. Coeff. | S.E. | t-Value | p-Values | Boot LL | Boot UL |
---|---|---|---|---|---|---|
EO → KMP | 0.283 | 0.061 | 4.639 | 0.001 | 0.172 | 0.371 |
KMP → OP | 0.346 | 0.070 | 4.928 | 0.001 | 0.221 | 0.453 |
Structural Paths | Path. Coeff. | S.E. | t-Value | p-Values | BC 95% CI | |
---|---|---|---|---|---|---|
Boot LL | Boot UL | |||||
EO → KMP → OP | 0.098 | 0.031 | 4.274 | 0.001 | 0.037 | 0.159 |
Path | Coefficient of Determination (R2) | Effect Size (f2) | Predictive Relevance (Q2) | |
---|---|---|---|---|
Entrepreneurial Orientation (EO) | 0.062 | Small | ||
Knowledge Management Process (KMP) | 0.473 | 0.084 | Small | 0.391 |
Organizational Performance (OP) | 0.546 | 0.414 |
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Adam, S.; Fuzi, N.M.; Ramdan, M.R.; Mat Isa, R.; Ismail, A.F.M.F.; Hashim, M.Y.; Ong, S.Y.Y.; Ramlee, S.I.F. Entrepreneurial Orientation and Organizational Performance of Online Business in Malaysia: The Mediating Role of the Knowledge Management Process. Sustainability 2022, 14, 5081. https://doi.org/10.3390/su14095081
Adam S, Fuzi NM, Ramdan MR, Mat Isa R, Ismail AFMF, Hashim MY, Ong SYY, Ramlee SIF. Entrepreneurial Orientation and Organizational Performance of Online Business in Malaysia: The Mediating Role of the Knowledge Management Process. Sustainability. 2022; 14(9):5081. https://doi.org/10.3390/su14095081
Chicago/Turabian StyleAdam, Sabrinah, Nursyazwani Mohd Fuzi, Mohamad Rohieszan Ramdan, Rosmah Mat Isa, Albert Feisal Muhd Feisal Ismail, Mohd Yussni Hashim, Sharon Yong Yee Ong, and Shah Iskandar Fahmie Ramlee. 2022. "Entrepreneurial Orientation and Organizational Performance of Online Business in Malaysia: The Mediating Role of the Knowledge Management Process" Sustainability 14, no. 9: 5081. https://doi.org/10.3390/su14095081