Knowledge diversity and firm performance: an ecological view

Abstract

Purpose

Knowledge has been considered a crucial organizational asset for gaining competitive advantages. It is critical for a firm to maintain a knowledge composition that is productive. This study aims to examine the applicability of the diversity–stability principle in ecology to knowledge management and further investigate the impact of knowledge diversity on firm performance.

Design/methodology/approach

A theoretical framework for knowledge diversity and firm performance is proposed; a questionnaire survey was conducted to evaluate the research framework. Fifty-eight valid responses from experts were collected to measure knowledge strength and diversity of 20 enterprises in four industries, and financial indexes of the 20 enterprises from 2008 to 2012 were collected to analyze the research model.

Findings

The results show that higher information technology (IT) capabilities in a firm lead to higher levels of knowledge strength and diversity. The strength and diversity of knowledge in a company can improve average company performance and reduce performance variations.

Research limitations/implications

This paper presents a new perspective that applies the ecological concept of diversity to examine the value of knowledge in organizations. The findings expand our understanding of the role of IT and knowledge in organizational performance. A limitation is that the sample size is relatively small, which may limit the generalizability of the findings.

Practical implications

CEOs and chief knowledge officers can apply the findings herein to assess their organizational knowledge profiles and maintain a healthy knowledge ecology in strategic planning. They should be aware that both knowledge strength and knowledge diversity are crucial to the stability of firm performance.

Originality/value

The ecological view of knowledge management stresses the importance of maintaining a healthy intensity and diversity of knowledge at the macro level and indicates a new direction for knowledge management.

Citation

Chen, D.-N. and Liang, T.-P. (2016), "Knowledge diversity and firm performance: an ecological view", Journal of Knowledge Management, Vol. 20 No. 4, pp. 671-686. https://doi.org/10.1108/JKM-10-2015-0377