IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i19p12610-d933111.html
   My bibliography  Save this article

A Study on the Effect of Knowledge Services on Organizational Performances Based on the Concept of Balanced Scorecards for the Sustainable Growth of Firms: Evidence from South Korea

Author

Listed:
  • Jae-Woong Jeong

    (Science and Technology Management Policy, University of Science and Technology, Daejeon 34113, Korea
    These authors contributed equally to this work.)

  • Heon-Hwi Lee

    (Science and Technology Management Policy, University of Science and Technology, Daejeon 34113, Korea
    These authors contributed equally to this work.)

  • Hun Park

    (Investment Analysis Team, Division of Data Analysis, Korea Institute of Science and Technology Information, Seoul 02456, Korea)

Abstract

This study clarified the effect of knowledge services (KSs) on organizational performances by introducing the concept of balanced scorecards (BSCs) for the sustainable growth of firms. Data were obtained from 246 firms by online survey and PLS-SEM was used as a data analysis method. Enhancement of knowledge absorptive capacity had a significantly positive effect on the improvement in decision-making quality. The improvement in decision-making quality was significantly relevant to organizational performances. Organizational performances were composed of non-financial and financial performances based on the framework of BSCs. A causal relationship between non-financial and financial performances was developed and suggested regarding non-financial performance as a leading indicator of financial performance. The perspectives of learning and growth and customers showed a statistical significance for the financial performance of firms. The customer aspect was more important than that of learning and growth when considering a relationship with financial performance. It was found that firms need to make an effort to improve their capabilities related to the perspectives of customers and learning and growth for their sustainable growth when they introduce external KSs as an open innovation strategy.

Suggested Citation

  • Jae-Woong Jeong & Heon-Hwi Lee & Hun Park, 2022. "A Study on the Effect of Knowledge Services on Organizational Performances Based on the Concept of Balanced Scorecards for the Sustainable Growth of Firms: Evidence from South Korea," Sustainability, MDPI, vol. 14(19), pages 1-19, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12610-:d:933111
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/19/12610/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/19/12610/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xing Shi & Yanrui Wu & Dingtao Zhao, 2014. "Knowledge intensive business services and their impact on innovation in China," Service Business, Springer;Pan-Pacific Business Association, vol. 8(4), pages 479-498, December.
    2. Ittner, CD & Larcker, DF, 1998. "Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction," Journal of Accounting Research, Wiley Blackwell, vol. 36, pages 1-35.
    3. Amir, Eli & Lev, Baruch, 1996. "Value-relevance of nonfinancial information: The wireless communications industry," Journal of Accounting and Economics, Elsevier, vol. 22(1-3), pages 3-30, October.
    4. J. Robert Baum & Stefan Wally, 2003. "Strategic decision speed and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 24(11), pages 1107-1129, November.
    5. Sunil Gupta & Valarie Zeithaml, 2006. "Customer Metrics and Their Impact on Financial Performance," Marketing Science, INFORMS, vol. 25(6), pages 718-739, 11-12.
    6. Muller, Emmanuel & Doloreux, David, 2009. "What we should know about knowledge-intensive business services," Technology in Society, Elsevier, vol. 31(1), pages 64-72.
    7. Hock‐Hai Teo & Xinwei Wang & Kwok‐Kee Wei & Choon‐Ling Sia & Matthew K. O. Lee, 2006. "Organizational learning capacity and attitude toward complex technological innovations: An empirical study," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 57(2), pages 264-279, January.
    8. Mowery,David C. & Rosenberg,Nathan, 1991. "Technology and the Pursuit of Economic Growth," Cambridge Books, Cambridge University Press, number 9780521389365.
    9. Ibhagui, Oyakhilome W. & Olokoyo, Felicia O., 2018. "Leverage and firm performance: New evidence on the role of firm size," The North American Journal of Economics and Finance, Elsevier, vol. 45(C), pages 57-82.
    10. Ruzita Jusoh & Daing Nasir Ibrahim & Yuserrie Zainuddin, 2008. "The performance consequence of multiple performance measures usage," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 57(2), pages 119+-136, January.
    11. Ming-Liang Yeh & Hsiao-Ping Chu & Peter Sher & Yi-Chia Chiu, 2010. "R&D intensity, firm performance and the identification of the threshold: fresh evidence from the panel threshold regression model," Applied Economics, Taylor & Francis Journals, vol. 42(3), pages 389-401.
    12. Bernhard Wieder & Maria-Luise Ossimitz & Peter Chamoni, 2012. "The Impact of Business Intelligence Tools on Performance: A User Satisfaction Paradox?," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 5(3), pages 7-32, December.
    13. Irene Goll & Abdul M. A. Rasheed, 1997. "Rational decision‐making and firm performance: the moderating role of the environment," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 583-591, August.
    14. Larry Lockwood & Wikrom Prombutr, 2010. "Sustainable Growth And Stock Returns," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 33(4), pages 519-538, December.
    15. Samson, Kelly & Bhanugopan, Ramudu, 2022. "Strategic human capital analytics and organisation performance: The mediating effects of managerial decision-making," Journal of Business Research, Elsevier, vol. 144(C), pages 637-649.
    16. Fey, Carl & Björkman, Ingmar, 2000. "The Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia," SSE/EFI Working Paper Series in Business Administration 2000:6, Stockholm School of Economics.
    17. A. Koutsoyiannis, 1975. "Modern Microeconomics," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-15603-0.
    18. Gordon, Lawrence A. & Loeb, Martin P. & Tseng, Chih-Yang, 2009. "Enterprise risk management and firm performance: A contingency perspective," Journal of Accounting and Public Policy, Elsevier, vol. 28(4), pages 301-327, July.
    19. Seev Hirsch & Ilan Bijaoui, 1985. "R&D intensity and export performance: A micro view," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 121(2), pages 238-251, June.
    20. Jiang, Xu & Li, Yuan, 2008. "The relationship between organizational learning and firms' financial performance in strategic alliances: A contingency approach," Journal of World Business, Elsevier, vol. 43(3), pages 365-379, July.
    21. Neirotti, Paolo & Pesce, Danilo & Battaglia, Daniele, 2021. "Algorithms for operational decision-making: An absorptive capacity perspective on the process of converting data into relevant knowledge," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    22. Martin Falk, 2012. "Quantile estimates of the impact of R&D intensity on firm performance," Small Business Economics, Springer, vol. 39(1), pages 19-37, July.
    23. Awan, Usama & Shamim, Saqib & Khan, Zaheer & Zia, Najam Ul & Shariq, Syed Muhammad & Khan, Muhammad Naveed, 2021. "Big data analytics capability and decision-making: The role of data-driven insight on circular economy performance," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eric Cauvin & Pierre-Laurent Bescos, 2005. "Nature Et Caracteristiques Des Informations Utilisees Par Les Entreprises Françaises Dans Le Cadre De Leur Communication Financiere : Une Etude Empirique," Post-Print halshs-00581142, HAL.
    2. Alam, Ashraful & Uddin, Moshfique & Yazdifar, Hassan & Shafique, Sujana & Lartey, Theophilus, 2020. "R&D investment, firm performance and moderating role of system and safeguard: Evidence from emerging markets," Journal of Business Research, Elsevier, vol. 106(C), pages 94-105.
    3. Petrou, Andreas P. & Hadjielias, Elias & Thanos, Ioannis C. & Dimitratos, Pavlos, 2020. "Strategic decision-making processes, international environmental munificence and the accelerated internationalization of SMEs," International Business Review, Elsevier, vol. 29(5).
    4. Dan Givoly & Yifan Li & Ben Lourie & Alexander Nekrasov, 2019. "Key performance indicators as supplements to earnings: Incremental informativeness, demand factors, measurement issues, and properties of their forecasts," Review of Accounting Studies, Springer, vol. 24(4), pages 1147-1183, December.
    5. Feng, Cong & Fay, Scott & Kashmiri, Saim, 2022. "The value relevance of descriptive R&D intensity," Journal of Business Research, Elsevier, vol. 139(C), pages 1394-1407.
    6. Zabihollah Rezaee & Ling Tuo, 2019. "Are the Quantity and Quality of Sustainability Disclosures Associated with the Innate and Discretionary Earnings Quality?," Journal of Business Ethics, Springer, vol. 155(3), pages 763-786, March.
    7. Zeynep Ton, 2008. "The Effect of Labor on Profitability: The Role of Quality," Harvard Business School Working Papers 09-040, Harvard Business School, revised Jul 2009.
    8. Jaimin Goh & Jaehong Lee & Wonchang Hur & Yunchang Ju, 2019. "Do Analysts Fully Reflect Information in Patents about Future Earnings?," Sustainability, MDPI, vol. 11(10), pages 1-17, May.
    9. Sven Baehre & Michele O’Dwyer & Lisa O’Malley & Nick Lee, 2022. "The use of Net Promoter Score (NPS) to predict sales growth: insights from an empirical investigation," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 67-84, January.
    10. Woong Park & Hyunchul Ahn, 2022. "Not All Churn Customers Are the Same: Investigating the Effect of Customer Churn Heterogeneity on Customer Value in the Financial Sector," Sustainability, MDPI, vol. 14(19), pages 1-22, September.
    11. Chen, Yiqi & Ibhagui, Oyakhilome W., 2019. "R&D-firm performance nexus: New evidence from NASDAQ listed firms," The North American Journal of Economics and Finance, Elsevier, vol. 50(C).
    12. Matsuoka, Kohsuke, 2022. "Effects of revenue management on perceived value, customer satisfaction, and customer loyalty," Journal of Business Research, Elsevier, vol. 148(C), pages 131-148.
    13. Leda Nath & Lori Holder-Webb & Jeffrey Cohen, 2013. "Will Women Lead the Way? Differences in Demand for Corporate Social Responsibility Information for Investment Decisions," Journal of Business Ethics, Springer, vol. 118(1), pages 85-102, November.
    14. Reem Fraih Alshiban & Khalid Rasheed Al-Adeem, 2022. "Empirically Investigating the Disclosure of Nonfinancial Information: A Content Study on Corporations Listed in the Saudi Capital Market," JRFM, MDPI, vol. 15(6), pages 1-23, June.
    15. Sergio Beretta & Saverio Bozzolan, 2013. "Il governo della performance dei processi di business: dai Key Performance Indicator ai Key Risk Indicator," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2013(2), pages 9-37.
    16. J. Andrew Petersen & V. Kumar & Yolanda Polo & F. Javier Sese, 2018. "Unlocking the power of marketing: understanding the links between customer mindset metrics, behavior, and profitability," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 813-836, September.
    17. Sunil Mithas & M. S. Krishnan & Claes Fornell, 2016. "Research Note—Information Technology, Customer Satisfaction, and Profit: Theory and Evidence," Information Systems Research, INFORMS, vol. 27(1), pages 166-181, March.
    18. Ma, Guang, 2019. "The information content of operations-related disclosures," Journal of Accounting Literature, Elsevier, vol. 43(C), pages 87-107.
    19. Anselmsson, Johan & Bondesson, Niklas, 2015. "Brand value chain in practise; the relationship between mindset and market performance metrics: A study of the Swedish market for FMCG," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 58-70.
    20. Hidalgo, Antonio & Herrera, Rafael, 2020. "Innovation management and co-creation in KIBs: An approach to the ICT services sector," Technological Forecasting and Social Change, Elsevier, vol. 161(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12610-:d:933111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.