Shared knowledge mediated correlation between cultural excellence and organisational performance

Abstract

Culture of excellence (CoE) is a critical determining element for efficient organisational performance (OP) in ever-competing global economy. Both manufacturing and service sectors implement this aspect to maintain their competitive advantage. We report the role of knowledge-sharing (KS) in strengthening the CoE and OP relationship in the context of Iranian manufacturing sectors. Past developments, recent progress and future trends in establishing such relation is comprehensively overviewed. A conceptual framework is proposed and empirically tested to determine the impact of KS on CoE and OP correlation. Managers from 222 European foundation for quality management excellence award-winning manufacturing companies in Iran are selected to conduct a case study via survey. Model is validated using Partial Least Squares Structural Equation Modelling and the path modelling among the studied variables is developed. It is demonstrated that CoE significantly impacts the OP, and KS partially mediates CoE and OP relationship. The admirable features of the structural model suggest that CoE can be advocated as a recommendable management system to effectively support the organisational competitiveness. Present findings might contribute towards the development of superior OP through the creation of a valid and reliable measurement instrument for CoE. We further assert that the proposed conceptual framework may offer interesting insights for practitioners and researchers.