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The Mediating Effect of Decision Quality on Knowledge Management and Firm Performance for Chinese Entrepreneurs: An Empirical Study

Author

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  • Haiyun Yu

    (School of Business, Jiangnan University, Wuxi 214122, China)

  • Yanjie Shang

    (Dongwu School of Business, Soochow University, Suzhou 215008, China)

  • Nan Wang

    (School of Business, Beijing Technology and Business University, Beijing 100048, China)

  • Zhenzhong Ma

    (Odette School of Business, University of Windsor, Windsor, ON N9E 4Z4, Canada
    School of Business, Nanjing Audit University, Nanjing 211815, China)

Abstract

While it is well-known knowledge management is crucial for an organization’s competitive advantage, relatively little research has explored the process whereby knowledge management affects firm performance in a collectivistic culture such as China. This study is to explore the mechanism through which knowledge management helps improve firm performance and then to examine the mediating role of decision quality in the Chinese context. Using a self-administered questionnaire to collect data from Chinese entrepreneurs and with structural equation modeling, this study shows that knowledge accumulation, internal sharing, and external knowledge sharing all have a positive impact on firm performance, and decision quality partially mediates the impact of knowledge management on firm performance. This study adds value to the knowledge management literature by introducing decision quality as a mediating variable to examine the impact of knowledge sharing on firm performance in China. The findings of this study can help enrich the literature on knowledge management and firm performance and highlight the important impact of decision quality on knowledge management and firm performance. Management practitioners can also benefit from the findings.

Suggested Citation

  • Haiyun Yu & Yanjie Shang & Nan Wang & Zhenzhong Ma, 2019. "The Mediating Effect of Decision Quality on Knowledge Management and Firm Performance for Chinese Entrepreneurs: An Empirical Study," Sustainability, MDPI, vol. 11(13), pages 1-15, July.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:13:p:3660-:d:245321
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    References listed on IDEAS

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    Cited by:

    1. Houxing Tang & Zhenzhong Ma & Jiuling Xiao & Lei Xiao, 2020. "Toward a more Efficient Knowledge Network in Innovation Ecosystems: A Simulated Study on Knowledge Management," Sustainability, MDPI, vol. 12(16), pages 1-18, August.
    2. Jurgita Raudeliuniene & Ibrahim Matar, 2022. "Knowledge Management Practice for Sustainable Development in Higher Education Institutions: Women Managers’ Perspective," Sustainability, MDPI, vol. 14(19), pages 1-13, September.
    3. Jiuling Xiao & Yuting Bao & Jiankang Wang & Haiyun Yu & Zhenzhong Ma & Lei Jing, 2021. "Knowledge Sharing in R&D Teams: An Evolutionary Game Model," Sustainability, MDPI, vol. 13(12), pages 1-18, June.
    4. Huayong Du & Ying Teng & Zhenzhong Ma & Xuguang Guo, 2022. "Value Creation in Platform Enterprises: A Fuzzy-Set Qualitative Comparative Analysis," Sustainability, MDPI, vol. 14(9), pages 1-21, April.

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