Exploring the Relationship between Ethics, Knowledge Creation and Organizational Performance: Case Study - A Knowledge-Based Organization

Abstract

Purpose - This research proposes to investigate the relationship between ethics, knowledge creation and organizational performance.

Design/Methodology/Approach - In order to run this study, as suggested by the experts, Nonaka & Takeuchi model was selected for knowledge creation process and Yokel model was used for organizational performance. In addition, Akhavan et al (2013) research was applied for organizational ethics dimensions. A conceptual model was designed based on literature review, and in order to analyze it, employees of a knowledge- based organization were asked to answer to the questions of a valid questionnaire. Structural equation modeling was used for studying the relationships between research variables.

Findings - Research results imply that there is a positive and strong correlation between ethics and organizational performance. The relationship between ethics and knowledge creation processes is also positive and significant but no significant relationship is observed between knowledge creation processes and organizational performance.

Research Limitations/Implications - The main limitation of this research is little researches and literature about ethical issues in knowledge management area.

Originality/Value - Although numerous studies have been conducted with regard to organizational performance and knowledge creation but the literature is severely deficient considering observance of ethics in all dimensions of organizational performance and knowledge creation process, and in terms of analysis of their mutual interactions and relationships.

Keywords: Ethics, Knowledge Creation Process, Organizational performance, knowledge management, KM