Organizational Performance by The Process of Knowledge Creation
Organizational Performance by The Process of Knowledge Creation
Organizational Performance by The Process of Knowledge Creation
Elena DOVAL1
Abstract: The whole society is facing today the problem of performance assur-
ance for organizations, especially obtaining success in an increasingly com-
petitive market. The concept of knowledge has been and still is in the attention
of the researchers to offer practical solutions to the companies’ management
that will lead to efficient strategies and superior performances. This paper is
aiming to analyse these two concepts briefly, i.e., knowledge and performance,
and to illustrate the intrinsic connection between them. Moreover, the paper
offers a conceptual model of a process of creating knowledge and using it to
increase the organizational performance.
Keywords: strategy, knowledge, knowledge management, organization-
al performance, process of knowledge creation
JEL Classification: D80; D84
1. Introduction
Organizational performance comprises the actual output or results of
an organization as measured against its intended outputs (or goals and ob-
jectives) (Wikipedia). The organizational performance depends first of all
on how it is managed and, secondly, on the active and correct involvement
of the employees in fulfilling the strategic objectives of the companies. The
1 Spiru Haret University, Faculty of Legal Sciences and Economic Sciences, Brasov,
Romania, [email protected]
3. Organizational performance
Performance represents a state of competitiveness, attained through a
level of effectiveness and productivity that ensures its strong presence on
the market, considering the multiform and complex interaction between
numerous factors (Dragomir & Pânzaru, 2014).
The organizational performance comprises the actual output or results
of an organization as measured against its intended outputs (or goals and
objectives). Specialists in many fields are concerned with organizational
performance, including strategic planners, operations, finance, legal, and
organizational development (Wikipedia). Performance, therefore, can be
defined as the evaluation of the constituents that try to assess the capability
and ability of a company in achieving the constituents' aspiration levels us-
ing efficiency, effectiveness, or social referent criteria (Jenatabadi, 2015).
According to Richard et al. (2015), organizational performance in-
cludes three specific areas of firm outcomes:
Financial performance (profits, return on assets, return on invest-
ment, etc.);
Product market performance (sales, market share, etc.); and
5. Conclusions
As we have shown, knowledge is created, spreads, and recreated in a
higher form, following a spiral of knowledge. Many scholars continue to
research this topic emphasizing different facets of it. It is to underline the
fact that knowledge significantly contributes to the enhancement of the or-
ganization's performance and all activities.
The entire process described above, i.e., analysis of external factors,
creating new ideas, the transformation of the knowledge, and the contribu-
tion of the new knowledge to the improvement of the performance of the
activities leads undoubtedly to increase the performance of the company.
The company is on the right path of the constant growth of its perfor-
mance if the cycle of the described process repeats and the continuous crea-
tion of knowledge becomes a commitment for management and employees,
The proposed conceptual model regarding the process of knowledge
creation management for organizational performance is an instrument for
facilitating the development of strategic intent in creating and implementing
knowledge with a focus on the company's performance.