Critical Components Affecting Organizational Performance

ABSTRACT

This paper builds a research model with four constructs, i.e., competencies, knowledge-oriented leadership, innovation, and performance within manufacturing companies to find out, through path modeling, 1) the effect of competencies on innovation, 2) the effect of knowledge-oriented leadership on innovation, and 3) the effect of innovation on performance. The survey instrument included four constructs – Competencies (COMP), Knowledge-oriented Leadership (LEAD), Innovation (INNO), and Performance (PERF). A marketing research company administered the instrument via computer-assisted telephone interviewing to subjects (N = 377) from 10 different high-tech manufacturing companies in Poland. Collected data were analyzed through partial least square structural equation modeling. The findings revealed that competencies and knowledge-oriented leadership positively and significantly influence innovation and innovation positively and significantly influence performance. Moreover, innovation was found to be a mediating variable between competencies and performance and knowledge-oriented leadership and performance. The theoretical and practical implications of the findings are discussed, followed by addressing the study’s limitations and future research directions.

KEYWORDS:

• Competencies
• knowledge-oriented leadership
• innovation
• performance

Acknowledgments

The article is the result of the Research Project No. 2016/23/D/HS4/02527 financed by the Polish National Science Centre.