IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i9p5081-d800384.html
   My bibliography  Save this article

Entrepreneurial Orientation and Organizational Performance of Online Business in Malaysia: The Mediating Role of the Knowledge Management Process

Author

Listed:
  • Sabrinah Adam

    (Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru 81310, Malaysia)

  • Nursyazwani Mohd Fuzi

    (Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru 81310, Malaysia)

  • Mohamad Rohieszan Ramdan

    (Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjong Malim 35900, Malaysia)

  • Rosmah Mat Isa

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600, Malaysia)

  • Albert Feisal Muhd Feisal Ismail

    (Faculty of Technology Management and Technopreneurship, Technology Campus, Universiti Teknikal Malaysia Melaka, Ayer Keroh 75450, Malaysia)

  • Mohd Yussni Hashim

    (Faculty of Mechanical & Manufacturing Engineering, Universiti Tun Hussein Onn Malaysia, Parit Raja 86400, Malaysia)

  • Sharon Yong Yee Ong

    (Faculty of Humanities, Management and Science, Universiti Putra Malaysia Bintulu Sarawak Campus, Bintulu 97007, Malaysia)

  • Shah Iskandar Fahmie Ramlee

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bahru 16100, Malaysia)

Abstract

The aim of this paper is to examine the role of the knowledge management process as a mediating variable in the relationship between entrepreneurial orientation and organizational performance. This study employed a quantitative method and utilised a self-administered questionnaire. A total of 350 data were collected from the owners/founders of online businesses. A Partial Least Squares-Structural Equation Modelling (PLS-SEM) analysis was performed to test the proposed hypotheses of the study. The findings indicated that entrepreneurial orientation positively the knowledge management process, which in turn exerts a positive effect on the organizational performance of a company. Additionally, the indirect effect analysis revealed that the knowledge management process plays a significant role as a mediator between entrepreneurial orientation and organizational performance. The research fills a gap in the literature by considering a mediating variable in enhancing the relationship between entrepreneurial orientation and organizational performance. This research also provides a particular contribution to the literature and some suggestions for future research.

Suggested Citation

  • Sabrinah Adam & Nursyazwani Mohd Fuzi & Mohamad Rohieszan Ramdan & Rosmah Mat Isa & Albert Feisal Muhd Feisal Ismail & Mohd Yussni Hashim & Sharon Yong Yee Ong & Shah Iskandar Fahmie Ramlee, 2022. "Entrepreneurial Orientation and Organizational Performance of Online Business in Malaysia: The Mediating Role of the Knowledge Management Process," Sustainability, MDPI, vol. 14(9), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5081-:d:800384
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/9/5081/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/9/5081/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Krzysztof Wach & Agnieszka Głodowska & Marek Maciejewski, 2018. "Entrepreneurial Orientation, Knowledge Utilization and Internationalization of Firms," Sustainability, MDPI, vol. 10(12), pages 1-23, December.
    2. Jeffrey G. Covin & G.T. Lumpkin, 2011. "Entrepreneurial Orientation Theory and Research: Reflections on a Needed Construct," Entrepreneurship Theory and Practice, , vol. 35(5), pages 855-872, September.
    3. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    4. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    5. Francisco Adro & Cristina I. Fernandes & Pedro M. Veiga & Sascha Kraus, 2021. "Social entrepreneurship orientation and performance in non-profit organizations," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1591-1618, December.
    6. Do, Hoa & Budhwar, Pawan & Shipton, Helen & Nguyen, Hai-Dang & Nguyen, Bach, 2022. "Building organizational resilience, innovation through resource-based management initiatives, organizational learning and environmental dynamism," Journal of Business Research, Elsevier, vol. 141(C), pages 808-821.
    7. Nursyazwani Mohd Fuzi & Nurul Fadly Habidin & Sharul Effendy Janudin & Sharon Yong Yee Ong, 2019. "Environmental management accounting practices, environmental management system and environmental performance for the Malaysian manufacturing industry," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 18(1), pages 120-136.
    8. Lu, Chia-Mei & Chen, Shyh-Jer & Huang, Pei-Chi & Chien, Jui-Ching, 2015. "Effect of diversity on human resource management and organizational performance," Journal of Business Research, Elsevier, vol. 68(4), pages 857-861.
    9. Pereira, Vijay & Bamel, Umesh, 2021. "Extending the resource and knowledge based view: A critical analysis into its theoretical evolution and future research directions," Journal of Business Research, Elsevier, vol. 132(C), pages 557-570.
    10. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    11. David G. Hoopes & Tammy L. Madsen & Gordon Walker, 2003. "Guest editors' introduction to the special issue: why is there a resource‐based view? Toward a theory of competitive heterogeneity," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 889-902, October.
    12. G.T. Lumpkin & Claudia C. Cogliser & Dawn R. Schneider, 2009. "Understanding and Measuring Autonomy: An Entrepreneurial Orientation Perspective," Entrepreneurship Theory and Practice, , vol. 33(1), pages 47-69, January.
    13. Zheng, Wei & Yang, Baiyin & McLean, Gary N., 2010. "Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management," Journal of Business Research, Elsevier, vol. 63(7), pages 763-771, July.
    14. Hunt, Shelby D. & Arnett, Dennis B., 2006. "Does marketing success lead to market success?," Journal of Business Research, Elsevier, vol. 59(7), pages 820-828, July.
    15. Esther Hormiga & Petra Saá-Pérez & Nieves L. Díaz-Díaz & José Luis Ballesteros-Rodríguez & Inmaculada Aguiar-Diaz, 2017. "The influence of entrepreneurial orientation on the performance of academic research groups: the mediating role of knowledge sharing," The Journal of Technology Transfer, Springer, vol. 42(1), pages 10-32, February.
    16. Nurul Ashykin Abd Aziz & Mohamad Rohieszan Ramdan & Nik Syuhailah Nik Hussin & Zuraimi Abdul Aziz & Juliana Osman & Hasif Rafidee Hasbollah, 2021. "The Determinants of Global Expansion: A Study on Food and Beverage Franchisors in Malaysia," Sustainability, MDPI, vol. 13(18), pages 1-16, September.
    17. Nonaka, Ikujiro & Byosiere, Philippe & Borucki, Chester C. & Konno, Noboru, 1994. "Organizational knowledge creation theory: A first comprehensive test," International Business Review, Elsevier, vol. 3(4), pages 337-351, December.
    18. David Han-Min Wang & Quang Linh Huynh, 2013. "Mediating Role of Knowledge Management in Effect of Management Accounting Practices on Firm Performance," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(3), pages 1-10, June.
    19. Vahid Delshab & Do Young Pyun & Shannon Kerwin & Juan-Gabriel Cegarra-Navarro, 2021. "The impact of unlearning context on organizational performance through knowledge management: A case of community sport clubs in Iran," Sport Management Review, Taylor & Francis Journals, vol. 24(1), pages 156-178, January.
    20. Hernández-Perlines, Felipe & Covin, Jeffrey G. & Ribeiro-Soriano, Domingo E., 2021. "Entrepreneurial orientation, concern for socioemotional wealth preservation, and family firm performance," Journal of Business Research, Elsevier, vol. 126(C), pages 197-208.
    21. Jeffrey G. Covin & Danny Miller, 2014. "International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues, and Future Research Directions," Entrepreneurship Theory and Practice, , vol. 38(1), pages 11-44, January.
    22. Feifei Jiang & Gang Wang & Xu Jiang, 2019. "Entrepreneurial orientation and organizational knowledge creation: A configurational approach," Asia Pacific Journal of Management, Springer, vol. 36(4), pages 1193-1219, December.
    23. Mohamad Rohieszan Ramdan & Nurul Ashykin Abd Aziz & Nor Liza Abdullah & Norsamsinar Samsudin & Gurcharanjit Singh Veer Singh & Thuraiya Zakaria & Nursyazwani Mohd Fuzi & Sharon Yong Yee Ong, 2022. "SMEs Performance in Malaysia: The Role of Contextual Ambidexterity in Innovation Culture and Performance," Sustainability, MDPI, vol. 14(3), pages 1-18, February.
    24. Carla Curado & Nick Bontis, 2006. "The knowledge-based view of the firm and its theoretical precursor," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 3(4), pages 367-381.
    25. Naqshbandi, M. Muzamil & Jasimuddin, Sajjad M., 2018. "Knowledge-oriented leadership and open innovation: Role of knowledge management capability in France-based multinationals," International Business Review, Elsevier, vol. 27(3), pages 701-713.
    26. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    27. Alba Kruja-Demneri, 2020. "Entrepreneurial Orientation, Synergy and Firm Performance in the Agribusiness Context: An Emerging Market Economy Perspective," Central European Business Review, Prague University of Economics and Business, vol. 2020(1), pages 56-75.
    28. Zeyad Alkhazali & Rosni Bakar & Mohd Ab. Halim, 2017. "The Role of Knowledge Management and Entrepreneurial Orientation on Organizational Performance among Commercial Banks in Jordan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(11), pages 928-936, November.
    29. Mila Kavalić & Milan Nikolić & Dragica Radosav & Sanja Stanisavljev & Mladen Pečujlija, 2021. "Influencing Factors on Knowledge Management for Organizational Sustainability," Sustainability, MDPI, vol. 13(3), pages 1-18, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nursyazwani Mohd Fuzi & Sabrinah Adam & Mohamad Rohieszan Ramdan & Sharon Yong Yee Ong & Juliana Osman & Subramaniam Kolandan & Siti Zubaidah Mohd Ariffin & Nor Sa’adah Jamaluddin & Karmilah Abdullah, 2022. "Sustainability Management Accounting and Organizational Performance: The Mediating Role of Environmental Management System," Sustainability, MDPI, vol. 14(21), pages 1-17, November.
    2. Shamshul Nur Fatinah Shamsul Ariffin & Nurmalina Zainal Abidin & Mohamad Allif Rosly & Shamsul Baharin Saihani, 2023. "Factors Inducing the Adoption of Knowledge Management System (KMS) In SMEs, Large and Government Organizations. What Are the Intercepting Factors? A Systematic Review," Information Management and Business Review, AMH International, vol. 15(1), pages 140-148.
    3. Shengyang Qin & Xinxing Duan & Ahmad Fatehallah Al-hourani & Naif Alsaadi, 2022. "Evaluation of Total Quality Management in Turkish Pharmaceutical Companies: A Case Study," Sustainability, MDPI, vol. 14(16), pages 1-20, August.
    4. Annuridya Rosyidta Pratiwi Octasylva & Lilik Noor Yuliati & Hartoyo Hartoyo & Agus W. Soehadi, 2022. "Innovativeness as the Key to MSMEs’ Performances," Sustainability, MDPI, vol. 14(11), pages 1-14, May.

    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. Ritala, Paavo & Baiyere, Abayomi & Hughes, Mathew & Kraus, Sascha, 2021. "Digital strategy implementation: The role of individual entrepreneurial orientation and relational capital," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    2. André de Abreu Saraiva Monteiro Alves & Fernando Manuel Pereira de Oliveira Carvalho, 2022. "How Dynamic Managerial Capabilities, Entrepreneurial Orientation, and Operational Capabilities Impact Microenterprises’ Global Performance," Sustainability, MDPI, vol. 15(1), pages 1-23, December.
    3. Tajeddini, Kayhan & Gamage, Thilini Chathurika & Tajdini, Javad & Qalati, Sikandar Ali & Siddiqui, Faiza, 2023. "Achieving sustained competitive advantage in retail and consumer service firms: The role of entrepreneurial orientation and entrepreneurial bricolage," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    4. Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa & Javier Martínez-Falcó, 2022. "Driving Innovation by Managing Entrepreneurial Orientation, Cooperation and Learning for the Sustainability of Companies in the Energy Sector," Sustainability, MDPI, vol. 14(24), pages 1-17, December.
    5. Ho-Taek Yi & Fortune Edem Amenuvor & Henry Boateng, 2021. "The Impact of Entrepreneurial Orientation on New Product Creativity, Competitive Advantage and New Product Performance in SMEs: The Moderating Role of Corporate Life Cycle," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    6. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    7. Luis Araya-Castillo & Felipe Hernández-Perlines & Hugo Moraga & Antonio Ariza-Montes, 2021. "Scientometric Analysis of Research on Socioemotional Wealth," Sustainability, MDPI, vol. 13(7), pages 1-26, March.
    8. Santos, Gina & Marques, Carla Susana & Ferreira, João J.M., 2020. "Passion and perseverance as two new dimensions of an Individual Entrepreneurial Orientation scale," Journal of Business Research, Elsevier, vol. 112(C), pages 190-199.
    9. Goumagias, Nikolaos & Fernandes, Kiran Jude & Nucciarelli, Alberto & Li, Feng, 2022. "How to overcome path dependency through resource reconfiguration," Journal of Business Research, Elsevier, vol. 145(C), pages 78-91.
    10. Tânia Gonçalves & Mário Sérgio Teixeira & José G. Dias & Sofia Gouveia & Ricardo Jorge Correia, 2021. "Commitment to exporting as an antecedent of organizational skills and firm performance," Journal of Business Economics, Springer, vol. 91(7), pages 1063-1084, September.
    11. Osama Musa Ali Al-Darras & Cem Tanova, 2022. "From Big Data Analytics to Organizational Agility: What Is the Mechanism?," SAGE Open, , vol. 12(2), pages 21582440221, June.
    12. Hwan Jin Kim, 2018. "Reconciling Entrepreneurial Orientation and Dynamic Capabilities: A Strategic Entrepreneurship Perspective," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 27(2), pages 180-208, September.
    13. Maryono & Imam Ghozali & Amie Kusumawardhani & R. Mahelan Prabantarikso & Firdaus Basbeth, 2020. "Entrepreneurial Orientation in Government-Owned Bank: Do They Improve Competitive Advantage?," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 262-270, April.
    14. Galbreath, Jeremy & Galvin, Peter, 2008. "Firm factors, industry structure and performance variation: New empirical evidence to a classic debate," Journal of Business Research, Elsevier, vol. 61(2), pages 109-117, February.
    15. Gupta, Rakesh & Pandey, Ritesh & Sebastian, V.J., 2021. "International Entrepreneurial Orientation (IEO): A bibliometric overview of scholarly research," Journal of Business Research, Elsevier, vol. 125(C), pages 74-88.
    16. Tiberius, Victor & Stiller, Laura & Dabić, Marina, 2021. "Sustainability beyond economic prosperity: Social microfoundations of dynamic capabilities in family businesses," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    17. Jan Lampe & Priscilla Sarai Kraft & Andreas Bausch, 2020. "Mapping the Field of Research on Entrepreneurial Organizations (1937–2016): A Bibliometric Analysis and Research Agenda," Entrepreneurship Theory and Practice, , vol. 44(4), pages 784-816, July.
    18. Rodrigo-Alarcón, Job & García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2018. "From social capital to entrepreneurial orientation: The mediating role of dynamic capabilities," European Management Journal, Elsevier, vol. 36(2), pages 195-209.
    19. Cuthbertson, Richard W. & Furseth, Peder Inge, 2022. "Digital services and competitive advantage: Strengthening the links between RBV, KBV, and innovation," Journal of Business Research, Elsevier, vol. 152(C), pages 168-176.
    20. Henri, Jean-Francois, 2006. "Management control systems and strategy: A resource-based perspective," Accounting, Organizations and Society, Elsevier, vol. 31(6), pages 529-558, August.

    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:9:p:5081-:d:800384. 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.