Previous studies have argued that improvement in organizational performance though change management processes is grounded in external knowledge acquisition and assimilation. However, there is ambiguity in how existing knowledge, in the form of intellectual capital (IC), is mobilized in this context. In response, this paper develops a context-based mediator model depicting the relationship between IC processes, absorptive capacity (AC) and organizational performance following the introduction of external knowledge.
A qualitative longitudinal case study approach is adopted, collecting data over three phases of a quality improvement program over a three-year period.
With the development of relational capital facilitated thorough changes in the work environment and the structured enhancement of knowledge-processing capabilities, the study identified the mediating role of AC on the relationship between IC mobilization and improved organizational performance.
Whilst there have been studies of relationships between IC and organization performance, to the best of the “authors” knowledge, this is one the few empirical studies to explore associations between IC types, existing knowledge sharing processes and IC mobilization, mediated by the AC of a firm, to exploit external knowledge.
