A Combined Model for Sustainable Competitive Advantage Based
Transcription
A Combined Model for Sustainable Competitive Advantage Based
Applied mathematics in Engineering, Management and Technology 2 (2) 2014:66-87 www.amiemt-journal.com A Combined Model for Sustainable Competitive Advantage Based on knowledge Management, Organizational Innovation and Agility Mostafa Jafari Assistant Professor, Industrial Engineering Faculty, Iran University of Science and Technology, Tehran, Iran Farnaz Barzin Pour Assistant Professor, Industrial Engineering Faculty, Iran University of Science and Technology, Tehran, Iran Mansour Maleki* [email protected] MSc Student of Executive Master of Business Administration, Iran University of Science and Technology, Iran Abstract This study aims to providing a conceptual model for gaining sustainable competitive advantage based on knowledge management, organizational innovation and agility. For this scientific purpose, sustainable competitive advantage approaches reviewed and the newest and also the most complete one that eliminates previous approaches disadvantages, dynamic capabilities view, identified. Based on selected SCA approach, knowledge management, organizational innovation and agility dynamic capabilities and their inter-relationships recognized from the literature. Finally after a deep literature reviewing, primary model suggested and validated in two stages. In first stage five experts of strategic management who were very familiar with KM, innovation and agility concepts revised the model. In second stage based on proposed model a questionnaire suggested for model validation. Questionnaire validity confirmed according to experts views and considered in interview and responding sessions with 30 experts and its reliability gained 0.708 in Cronbach's alpha method. Collected answered questionnaires analyzed with SPSS software. Results indicated the model approximately high validity. Keywords: Sustainable competitive advantage, Knowledge management, Organizational innovation, Agility, Capability 1.Introduction Nowadays in current economic difficulties organizations performance depends on their competitive advantage merely (De Oliveira Teixeira & Werther, 2013). Regard to recent financial crisis, changing environment and other international issues organizations found that gaining and sustaining competitive advantage is increasingly difficult (D'Aveni, Dagnino & Smith, 2010). According to Helfat and Peteraf (2009) gaining sustainable competitive advantage is strategic management researches "Holy Grail". Strategic management looks for resources that provide competitive advantage sustainability (Korsaa & Jensen, 2010). Kang (2008) claimed that strategic management has been changed considerably from its beginning views in 1950 decade around integrating internal situations with external expectations for executing organization policies. Two main approaches presented for sustainable competitive advantage before current decade. These approaches consisted of industrial organization view which attracted attentions with Porter (1985) five competitive force model and resource based view suggested by Barney and Arikan (2001) that considers organizations differentiation in resources for more business success. According to some limitations former approaches had, a new approach called dynamic capabilities view presented by Teece et al (1997). In this approach dynamic capabilities are a firm’s ability to rapidly integrate and reconfigure resources to match a changing environment (Eisenhardt & Martin, 2000). In the other hand some scolars like Nasimi et al (2013), Mahdi et al (2011), Li and Zhao (2006) and some others mentioned that knowledge management is an important organizational capability for sustainable competitive advantage creation. In Tseng and Lin (2011), Bottani (2009) and some other intellectual's studies agility introduced as an essential circumstance for organizational survivability and competitiveness. Organizational innovation has been illustrated as a facilitator for sustainable competitive advantage gaining in 66 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Ganter and Hecker (2013), Comison and Villar-Lopez (2011) and Gunday et al (2011) and some other researches. The present study contributes to the existing knowledge by presenting a new model of sustainable competitive advantage based on dynamic capability view by identifying and integrating knowledge management, organizational innovation and agility capabilities. 2. Literature Review 2.1.Sustainable competitive advantage Lio et al (2002) believe that sustainable competitive advantage refers to those competitive advantages are valuable for customers, not easily imitated by competitors, not duplicated and merit organizational performance and competitiveness. According to Narver and Slater (2000), in the past, competitive advantage based on structural characteristics, such as marketing power, economies of scale or mass production, but is now focusing on the business capabilities that enable customers to create superior value without contradiction. Sustainable competitive advantage concept evolution mentioned in Table.1. Table.1 sustainable competitive advantage concept evolution- modified from Steiber (2012) Scholars Research Issue Contribution Alderson (1965) Search for differentiation Technological, legal and geographical resources for differentiation Hall (1980) Survival strategies in a The lowest cost to achieve and challenging environment differentiated position for SCA Henderson (1983) Competence structure Quickly adapt to the competitive environment Porter (1985) Competitive Advantage: Valuable creation source of sustainable Creating and sustaining competitive advantage Coyne (1986) What is a sustainable Capability Gaps competitive advantage Ghemawat (1986) Sustainable advantage Market share, access to resources and customers, competitors barriers for competition are resources to achieve sustainable competitive advantage Day & Wensley Advantage assessment Skills and resources to achieve (1988) framework sustainable competitive advantage Dierickx & Cool Saving and asset accumulation Assets limited or sustained (1989) for sustainable competitive advantage Hamel & Prahalad Core competencies of the Providing core competences, skills and (1990) organization resources Conner (1991) Historical approach to the Reduce costs and attract customers resource-based view Bharadwaj et al Sustainable competitive Recognizable marketing services for (1993) advantage in service clients organizations Day & Nedungadi Managerial competitive Customer orientation versus competition (1994) advantage orientation to create a sustainable competitive advantage Hunt & Morgan Theory of comparative Resources determine the competitive (1995) advantage and competitiveness position Oliver (1997) Sustainable competitive Heterogeneous and organizational capital advantage resources to achieve sustainable competitive advantage Srivastava et al Market-based assets and The importance of relational and 67 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al (1998) Hoffman (2000) shareholder value The concept of sustainable competitive advantage in the past, present and future intellectual assets Discussion of market orientation, customer value, relational marketing and network in a sustainable competitive advantage Training means that organizations need to successfully make use of it Constructive culture, creating a sustainable competitive advantage Technology competencies, to create a sustainable competitive advantage Sustainable competitive advantage, leading innovation-driven knowledge management Suitable knowledge creation, SCA provider Burden & Proctor Sustainable competitive (2000) advantage through training Sadri & Lees (2001) Organizational culture as a competitive advantage Coates & Exploratory analysis of new McDermott (2002) competencies Adams & Lamont Knowledge management (2003) system and sustainable competitive advantage Sharkie (2003) Knowledge creation in order to provide sustainable competitive advantage Kotelnikov (2004) Sustainable competitive Synergistic distinctive capabilities and advantage reproducible capabilities as sources of competitive advantage Khandekar & The capabilities of human Human resource capabilities to create Sharma (2005) resources and create a sustainable competitive advantage sustainable competitive advantage Javalgi & Sustainable competitive Internet is a source of sustainable Radulovich (2005) advantage of internet based competitive advantage businesses Bonney et al (2007) From serendipity to sustainable Innovation, an essential step in achieving competitive advantage: a sustainable competitive advantage innovation and cooperative approach Kindestrom (2010) Service-oriented organizational Services, creating sustainable model and future competitive competitive advantage advantage Bhuvyan (2011) Latent sources of sustainable Technical know-how, organizational competitive advantage in competence and confidence, the sources Chinese organizations of sustainable competitive advantage Shim & Lee (2012) Sustainable competitive Innovation, key source of sustainable advantage based on innovation competitive advantage and threats in the market with the net effect of new competitors Prianto et al (2012) The traditional strategies and Traditional strategies, sources of sustainable competitive sustainable competitive advantage advantage Yalcin (2013) Sustainable competitive Intellectual capital and knowledge advantage, knowledge management, sustainable competitive management and intellectual advantage creators capital Leonidou et al Resources and capabilities, Resources and capabilities, actuators (2013) actuators competitive advantage competitive advantage in the hotel in the hotel industry industry 2.2Knowledge Management 68 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Singh (2008) defined knowledge management as a process that facilitates knowledge sharing and establishes learning as continuous process within an organization. According to Sandhawalia and Dalcher (2011) Knowledge management (KM) has become increasingly important as organizations realize that effective use of their vast and varied knowledge assets and resources provides them with the ability to innovate and respond to fast changing customer expectations. KM can be described as a systematic process of managing knowledge mainly from searching, creating, organizing, sharing, facilitating and evaluating aspects by utilizing technologies to help in decision making of sustaining competitive advantage (Mahdi et al, 2011). Based on the newest definition, knowledge management can be mentioned as systematic processes that help organizations creating, sharing and applying knowledge to improve organizational performance at least. 2.3.KM Capabilities Knowledge management (KM) capabilities are organizational mechanisms for generating knowledge continuously; they can encourage acquiring knowledge, storing knowledge, protecting knowledge, and facilitating knowledge sharing in an organization (Gold et al., 2001). Matopoulos et al (2009) claimed that KM capabilities focus on the importance of setup of knowledge repositories and building a knowledge-sharing environment for increased awareness and diffusion of e-business. Also Sandhawalia and Dalcher (2011) mentioned knowledge sharing between individuals in their KM capabilities definition and stated that Knowledge use is associated with people and behavior and organizations benefit when knowledge is shared in context and according to need. Some scholars like Gold et al (2001), Shaabani et al (2012), Manovas (2004) categorized KM capabilities to infrastructural and process ones and introduced some similar and some different subsets. Suggested KM capabilities in some former studies introduced in following Table. Scholars Gold et al (2001) Table.2 Suggested KM capabilities in some former studies Research Issue Contribution KM infrastructure and Process capability process capabilities effects on KM and organizational effectiveness Infrastructure capabilities Khalifa & Liu (2003) Manovas (2004) Examining the relationship between knowledge management process capabilities and infrastructure capabilities KM capabilities effects on successful knowledge sharing Infrastructure capabilities Process capability Infrastructure capabilities Chuang (2004) Resource-based approach to evaluate and test the relationship between knowledge management capability and competitive 69 Technical capabilities Social capabilities Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Lee & Lee (2007) Nguyen (2010) advantage Capabilities, processes and knowledge management performance using a structural approach Knowledge management capabilities and competitive advantage ructure Process capabilities Social and capabilities Mills & Smith (2010) The impact of knowledge management on organizational performance technical Process capabilities owledge Application Infrastructure capabilities Sandhawalia & Dalcher (2011) Structural approach to developing knowledge management capabilities Process capabilities nowledge Transfer Infrastructure capabilities Shaabani et al (2012) Interactions among elements of knowledge management lead to acquiring core competencies Process capabilities Infrastructure capabilities Aujirapongpan et al (2012) Indicators of knowledge management capability for KM effectiveness Emadzade et al (2012) Knowledge management capabilities and organizational performance 70 Process capabilities infrastructure Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Infrastructure capabilities Lin (2013) Effect of knowledge management capabilities on partnership 2.4.Organizational Agility Brian Maskell (2001) defines the agility as the ability of prosperity in an environment with continued and unpredictable changes. Vazquez-Bustelo and Avella (2006) illustrated that Mobilizeing the basic functionality of the organization, responding to the social and environmental issues, combining various technologies, react to changes and uncertainty and organizational coherence within and between the organizations are the main key concepts of organizational agility. Agility is perceived as the dominant competitive vehicle for all organizations in an uncertain and ever-changing business environment (Tseng and Lin., 2011). Ebrahim Pour et al (2011) believe that Agility is the ability to succeed in the changing and unpredictable environment. Izadpanah and Yaghoubi Pour (2012) stated agility is successful identification of the principles of competition (speed, flexibility, innovation, quality and profitability), integration of resources, and appropriate actions in the environment of knowledge with rapid changes, by providing the customer-friendly products and services. Agility is the ability to succeed in the changing and unpredictable environment 2.5.Organizational Agility Capabilities Shahaei (2008) claimed that institutions require some distinct abilities in order to deal with changes, uncertainty and unpredictable issues in their business environment. Agility capabilities are considered as inescapable features of today’s forward-looking organizations. Those organizations which possess such characteristic would be able to achieve competitive advantage and gain an edge over competitors (Ebrahim Pour et al, 2011). Some agility capabilities such as responsiveness, flexibility, speed, competency, learning etc. mentioned in agility literature. Suggested Organizational Agility capabilities in some former studies introduced in following Table. Table.2. Suggested Organizational Agility in some former studies Scholars Research Issue Contribution Sharp et al (1999) Agility in U.K. industries John et al (2001) Development of agile manufacturing Sharifi & Zhang (2001) Proposed methodology to achieve agility Madeline & Youssef (2003) The importance of human resources in organizational agility 71 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Chopra & Meindl (2007) Agility in Supply Chain Management Jafarnejad & Shahaie (2008) Evaluate and improve organizational agility Dahmardeh et al (2010) Evaluation and ranking of agility capabilities in Ghaen cement company Tseng & Lin (2011) Provide the conceptual model for increasing organizational agility Ebrahim Pour et al (2012) The relationship between organizational performance and agility capabilities Bani Hashemi & Sarani (2012) Evaluating enterprise agility in the cement industry Mahmoudi Maymand et al (2012) strategies to improve organizational agility Abesi et al (2013) Effects of organizational agility capabilities on national manufacturing Cost reduction Flexibility Quality Fast Delivery Readiness Responsiveness ed Responsiveness 2.6.Organizational Innovation Wong and Chin (2007) addressed organizational innovation as the development or adoption of an idea or behavior into business operations that is new to the whole organization in their study. Organizational innovation defined as the application of ideas that are new to the company, to create added value either directly for the company or indirectly for its customers, whether the newness and added value are embodied in products, processes, services, or in work organization, management or marketing systems (Weerawardena, 2003; Herna´ndez-Mogollon et al, 2010). Organizational innovation is the implementation of a new organizational method in the firm’s business practices, workplace organization or external relations (Gunday et al, 2011). Steiber (2012) believes that Organizational innovation is an organizational method in working practices, organizing work environment and external relations which are new for organization, and tends to improve organizational performance. Camisón and Villar-López (2012) preferred OECD (2005) definition of organizational innovation which considered OI as the implementation of a new organizational method in a firm's business practices, workplace organization, or external relationships. 2.7.Organizational Innovation Capabilities 72 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Intelligence and creativity, the ability of learning and knowledge creation introduced as organizational innovation capabilities in Law (2004 ) research. Lin (2006) outlined changing organizational structure and processes as main organizational innovation capabilities. Herna´ndez-Mogollon et al (2010 ) argued that the most important organizational innovation capability is change. Recent studies in the field of organizational innovation considered it as a social process leads to major changes in the organization (Ho, 2010). Li and Liu (2013) mentioned in their study of the impact of leadership on organizational innovation capabilities and innovation performance, research and development, production, marketing and as organizational innovation capabilities of the organization. - KM, Organizational Innovation, Organizational Agility and Sustainable competitive advantage Interrelationships KM and Sustainable competitive advantage KM has an important role in sustainable competitive advantage achieving and considered as a key developer for SCA in the literature. Atkočiūnienė (2013), Chowtupalli & Rafi (2013), Marjanovic and Freeze (2012), Mahdi et al (2011), Bhatti et al (2010), Kibet et al (2010) and many other researchers in past decade mentioned KM and KM capabilities as main sustainable competitive advantage provider. Nasimi et al (2013) believe that knowledge management is the competitive advantage of today's business world, Although knowledge management is faced with numerous challenges, but with lower costs and convenient dealing with environmental changes considered as sustainable competitive advantage. 2.8.Organizational Agility and Sustainable competitive advantage Chen (2012), Mason (2010), Liu (2010), Reeves and Deimler (2009), Lee et al (2008) and other scholars introduced organizational agility as the basic feature for survival and long term competitiveness. Agility is perceived as a dominant strategy for all organizations a competitive edge in an ever-changing business environment of high uncertainty (Tseng & Lin, 2011). 2.9.Organizational Innovation and Sustainable competitive advantage Organizational innovation which is based on the changing environment and the highly competitive market leads to sustainable competitive advantage (Ganter & Hacker, 2013). Weerawardena and Mavondo (2011), Matthews and Becker (2009), García-Morales et al (2008) and Weerawardena (2003) considered organizational innovation as main factor for sustainable competitive advantage achieving. 2.10.KM and Organizational Agility Many researchers such as Zyngier and Owen (2013), Kamhawi (2012), Chuang et al (2010) and Ashrafi et al (2005, 2006) introduced knowledge management as an essential resource to create and enhance enterprise agility. Yaghoubi and Rahat Dahmardeh (2011) enumerated Knowledge management as the most important factor and facilitator for organizational agility. 2.11.KM and Organizational Innovation Through an established system for knowledge management in the organization, effective use of resources to achieve organizational goals and provided organizational innovation is facilitated (Chang and Lee, 2008). Many other scholars mentioned the catalyst and facilitation role of KM in organizational innovation (Aboelmaged, 2012; Esterhuizen et al, 2012; Arling & Chun, 2011; Gunsel et al, 2011; Weijing, 2010; Zhou et al, 2010; Johannessen, 2008). 2.12.Organizational Innovation and KM 73 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Zhou et al (2010) in their study around the process of knowledge management and continuous innovation, stated that organizational innovation reinforces knowledge management. Researches in studying the role of Organizational Innovation in KM is not grown yet. 2.13.Organizational Innovation and Organizational Agility Kamhawi (2012) in his study about KM and organizational capabilities mentioned that organizational innovation reinforces organizational agility and Jorfi et al (2013) in their researches around surveying the relationship between organizational innovation and agility in Ahvaz Ramin Power Station indicated that organizational innovation empowers organizational agility. 3.Research Methodology This study is a descriptive qualitative research that uses expert panel views for suggesting and validating the provided conceptual model. For this purpose literature of sustainable competitive advantage, knowledge management, organizational innovation and agility reviewed. Then based on selected SCA approach, a conceptual model presented and in some interviewing sessions with five related experts analyzed and modified. Primary conceptual model presented after modification and a questionnaire included of 13 questions designed for final model validation. Questionnaire validity confirmed by some experts. Questionnaire reliability considered based on in Cronbach's alpha method Target population for questionnaire answering was experts of strategic management that were very familiar with KM, Organizational innovation and agility concepts. Some interview sessions conducted with 30 experts and questionnaire answered after these sessions. Answered questionnaires analyzed with SPSS version (19) software and results presented. Table. 3. Questionnaires reliability statistics Reliability Statistics Cronbach's N of Items Alpha .708 13 4.Conceptual Model - Conceptual model presented in three layer. In layer 1, knowledge management, organizational agility and innovation was considered factors to create sustainable competitive advantage. In layer 2, based on dynamic capabilities view, knowledge management, organizational agility and innovation capabilities was considered. In layer 3, knowledge management, organizational agility and innovation capabilities inter-relationships was considered. Layer 1 OA SCA KM OI Figure 1. First layer of model To achieve sustainable competitive advantage, knowledge management, organizational innovation and organizational agility have direct role. Knowledge management have direct role in organizational innovation and organizational agility. Organizational innovation have direct role in knowledge management. 74 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al - Layer 2 OA Capabilities Responsiveness Flexibility KM Capabilities Speed Process Capabilities Competency Knowledge Acquisition Knowledge Conversion knowledge Application Knowledge Protection SCA OI Capabilities Infrastructure Capabilities Organizational structure and processes change Technology Structure Human Change practices Culture Intelligence management Knowledge Creation Effective learning Figure 2.Second layer of model 4.1. Knowledge management capabilities According to literature review two types of infrastructure and process capability considered in many former studies. In this study based on former researches and regards to shaabani et al (2012) study, following capabilities considered as KM capabilities. Process Capabilities Process capabilities relate to KM processes effects on organizational knowledge resources in organization performance areas. Knowledge Acquisition Process of achieving and regulating individual knowledge, structure and relate to system organizational knowledge system Knowledge Conversion 75 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Social process in which people communicate and interact with each other and the quality and quantity of explicit and tacit knowledge in the organization increases. Knowledge Application Activities through the use of organizational capabilities in the creation, reproduction and delivery of products and services can be sold back to the market Knowledge Protection Includes protection against the illegal and inappropriate use of organizational knowledge and knowledge snatching 4.2.Infrastructure Capabilities Organizational infrastructure that increases the efficiency of the knowledge management activities. Technological Enabling tools to facilitate sharing, turned demonstrate and converting knowledge as well as improving human resources skills in knowledge acquisition Structural The structural position of organization that encourages knowledge related activities Cultural A system of beliefs and values of the organization that is intended to determine how people perform. Human Human resources skills and expertise in the specific areas and shows the ability to use knowledge in interaction with others. 4.3.Organizational Agility Capabilities According to literature most of studies considered responsiveness, competency, flexibility and speed as organizational agility capabilities. Responsiveness Including identifying changes needed to respond quickly and improve responding reactive or proactively. This capability includes the following steps and procedures: To feel, to understand and predict changes Immediate response to changes Find ways of improving Product and services updates Customer feedback Competency Capabilities that help organization to efficiently and effectively achieve its visions. Some of these capabilities are as follows: Strategic perspective Having favorable technology Product and service quality Reduced costs Management of change People with sufficient skilled and competent Increasing the efficiency of production operations Internal and external organization cooperation Flexibility Ability to perform multiple tasks and achieve goals using a variety of options are available. These capabilities include: 76 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al - Flexibility in production volume Flexibility in production variety Flexibility of structure Flexibility in staffing Speed It refers to the speed of operation. And include the following: Rapid introduction of new products and services to market Fast delivery of products and services Speed of R&D operations 4.4.Organizational Innovation Capabilities According to previous studies, a combination of intelligence, creativity, effective learning, organizational structure and process and management practices change based on Law Studies (2004), Lin (2006) and Hernandez-Mogollon et al (2010) has been desired as organizational innovation capabilities in this research. Changing in organizational structure and processes Structural change towards virtual and flat structure and the Business Process Reengineering for adapting to changes in current business environment Changing management practices Change management patterns from autocratic ones to participative and aggressive management regime based on democratic management, organizational maturity, independence and freedom of action in order to create fertile creativity, organization and knowledge-based management Intelligence Organizational intelligence allows people at all levels of an organization to access information, interact and analyze them to manage the business, improve efficiency to discover success factors and realize efficient organizational operations. Knowledge creation Knowledge creation is a complex, multidimensional and dynamic process and included of institutional capacity in the creation and circulation of knowledge within the organization, products, services and systems, including the creation of new knowledge by combining knowledge from different sources within the enterprise together and analyze information. Effective learning Effective learning through sharing insight, knowledge, experience and mental models of organization members is obtained. Effective learning is based on knowledge and experience that exists in the memory and included of the mechanism of such policies, strategies and models that are based on stored knowledge. 77 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Layer 3 SCA Int egr ati on OA Capabilities Responsiveness KM Capabilities Facilitate Process Capabilities Flexibility Speed Competency Reinf orce Knowledge Acquisition Knowledge Conversion knowledge Application Knowledge Protection Facilitate Infrastructure Capabilities Technology Structure Human Culture OI Capabilities Organizational structure and processes change Change practices Reinforce - management Intelligence Knowledge Creation Effective learning 78 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Figure 3.Third layer of model 4.5.Facilitate organizational innovation capability through knowledge management capabilities Knowledge management capabilities through interaction implicit and explicit knowledge to create new knowledge and to create the infrastructure and information technology systems, information dissemination and integration of related data, will facilitate the creation of organizational innovation capability. On the other hand, focus on effective learning and organizational capabilities of knowledge management emphasizing knowledge and deepen its role in enhancing organizational learning, helps to build innovation capabilities. 4.6.Facilitate organizational agility capabilities through knowledge management capabilities Through effective management of three types of knowledge, organizations will provide the foundation to deal with the changing market. For example, the creation and transfer of knowledge helps organizations to identify changes in customer preferences and tastes and needs of their clients to pay. After receiving information about environmental changes, based on knowledge of production processes, organizations change products and services processes, and ultimately to the major changes in the management of the organization to respond quickly and appropriately to changes in the environment will be facilitated. 4.7.Reinforcing organizational agility capabilities through innovation capabilities Organizational innovation capabilities included of intelligence, knowledge creation and effective learning provide institutional competence to respond appropriately and timely to external changes and reinforce this through improved organizational agility. Changing management approaches, in addition to changing structure and processes enhance organizational flexibility and speed that consisted of basic features of the organizational agility. 4.8.Reinforcing knowledge management capabilities through organizational innovation capabilities Organizational innovation creates organizational capabilities for knowledge creation in the organization and effective learning that enhances the process capabilities of knowledge management and the new approach to flexible organizational structures and management in organizations, improve knowledge management infrastructure capabilities. 4.9.Integration of knowledge management, organizational agility and innovation capabilities to achieve sustainable competitive advantage Integration consisted of the four process, judgmental, system and developmental dimensions. Process integration includes creating awareness of the established model, a consulting background, characterize and organization of the model and its implementation strategies. Judgmental integration balances management theories, and moral support of senior management and concerned collective decision-making. Public participation in decision making, implementation will facilitate decision -making. Development integration refers to personal and social recognition and collective commitment based on personal, group and organizational commitment. System integration balance between internal processes and external organizational infrastructure for creating a collective commitment to implement the organization's decisions. 5.Discussion 5.1.Data Analysis Descriptive Statistics Demographic variables including age, gender, and education level, academic degree, level of work / research experience and field of Study. 79 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Summary of descriptive statistics illustrated in Table.3. Table.4.Summary of descriptive statistics Demographic variables Maximum Minimum Age Above 45 (%30) 30-35 (%6.7) Gender Male (%96.7) Female (%3.3) Education PhD (%73.3) MSc (%26.7) Academic degree Assistant Professor Professor and Lecturer (%3.3) (%33.3) Field of Study Management (%66.6) Quality Engineering (%3.3) Work/Research experience More than 9 years 3-6 years (%10) (%43.3) Descriptive statistics for model validation criteria In this section total distribution of each of 13 questions in questionnaire proposed. Questions 1 2 3 4 5 6 7 8 9 Table.5. Distribution of each of 13 questions Questions Strongly Agree medium Disagree description agree Relations of model 6 21 3 0 layers Model layers 6 21 3 0 classifications Using the dynamic 13 15 2 0 capabilities approach to knowledge management, organizational agility and innovation for SCA Knowledge 9 18 3 0 management capabilities introduced Organizational 10 16 4 0 innovation capabilities introduced Organizational agility 7 22 1 0 capabilities introduced Facilitate 6 18 6 0 organizational agility capabilities through knowledge management capabilities Facilitate 8 17 5 0 organizational innovation capability through knowledge management capabilities Reinforcing 8 18 4 0 organizational agility capabilities through organizational innovation capabilities 80 Strongly disagree 0 0 0 0 0 0 0 0 0 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al 10 Reinforcing 6 organizational agility capabilities through knowledge management capabilities 19 5 0 0 11 12 Model comprehension 5 Presentation on the 8 role of knowledge management, organizational agility and innovation to achieve sustainable competitive advantage Operational aspects 20 17 5 5 0 0 0 0 17 5 7 1 13 5.2.Validate the proposed conceptual model To assess the validity of the proposed research, interviews and questionnaires were used, so that at first through interviews and meetings with experts and professors in the field of strategic management, knowledge management, innovation and organizational agility review the primary model and battered the model based on their authentication. Secondly, through questionnaires and meeting sessions with experts attempted to obtain data needed to assess the validity of the model. The proposed model is validated using the non-parametric method K-S test for normality K-S test indicated that data has not normal distribution. Table.6. Normality test using K-S One-Sample Kolmogorov-Smirnov Test Q1 Q2 N 30 30 Mean 4.1000 4.1000 Normal Parametersa,b Std. Deviation .54772 .54772 Absolute .372 .372 Most Extreme Differences Positive .372 .372 Negative -.328 -.328 Kolmogorov-Smirnov Z 2.040 2.040 Asymp. Sig. (2-tailed) .000 .000 One-Sample Kolmogorov-Smirnov Test Q4 Q5 N 30 30 Mean 4.2000 4.2667 a,b Normal Parameters Std. Deviation .61026 .63968 Absolute .328 .295 Most Extreme Differences Positive .328 .295 Negative -.272 -.241 Kolmogorov-Smirnov Z 1.799 1.615 Asymp. Sig. (2-tailed) .003 .011 81 Q3 30 4.3667 .61495 .291 .291 -.282 1.595 .012 Q6 30 4.2000 .48423 .427 .427 -.306 2.338 .000 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al One-Sample Kolmogorov-Smirnov Test Q7 Q8 N 30 30 Mean 4.0000 4.1000 a,b Normal Parameters Std. Deviation .64327 .66176 Absolute .300 .293 Most Extreme Differences Positive .300 .293 Negative -.300 -.273 Kolmogorov-Smirnov Z 1.643 1.607 Asymp. Sig. (2-tailed) .009 .011 Q9 30 4.1333 .62881 .317 .317 -.283 1.738 .005 One-Sample Kolmogorov-Smirnov Test Q10 Q11 N 30 30 Mean 4.0333 4.0000 a,b Normal Parameters Std. Deviation .61495 .58722 Absolute .322 .333 Most Extreme Differences Positive .322 .333 Negative -.312 -.333 Kolmogorov-Smirnov Z 1.762 1.826 Asymp. Sig. (2-tailed) .004 .003 Q12 30 4.1000 .66176 .293 .293 -.273 1.607 .011 One-Sample Kolmogorov-Smirnov Test Q13 30 3.8667 .73030 .306 .261 -.306 1.675 .007 N Normal Parameters Mean Std. Deviation Absolute Positive Negative a,b Most Extreme Differences Kolmogorov-Smirnov Z Asymp. Sig. (2-tailed) a. Test distribution is Normal. b. Calculated from data. Binomial test Table.7. Binomial test Binomial Test Q1 Q2 Q3 Group 1 Group 2 Total Group 1 Group 2 Total Group 1 Category N <= 3 >3 3 27 30 3 27 30 2 >3 82 .6 Exact Sig. (1tailed) .000a .6 .000a .6 .000a Observed Prop. Test Prop. .1 .9 1.0 .1 .9 1.0 .1 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Group 2 Total Group 1 Group 2 Total Group 1 Group 2 Total Group 1 Group 2 Total Group 1 Group 2 Total Group 1 Group 2 Total Group 1 Group 2 Total Group 1 Group 2 Total Group 1 Group 2 Total Group 1 Group 2 Total Group 1 Group 2 Total >3 <= 3 >3 <= 3 >3 <= 3 >3 <= 3 >3 <= 3 >3 <= 3 >3 <= 3 >3 <= 3 >3 <= 3 >3 <= 3 >3 28 30 3 27 30 3 27 30 1 29 30 6 24 30 5 25 30 4 26 30 5 25 30 5 25 30 5 25 30 8 22 30 .9 1.0 .1 .9 1.0 .1 .9 1.0 .0 1.0 1.0 .2 .8 1.0 .2 .8 1.0 .1 .9 1.0 .2 .8 1.0 .2 .8 1.0 .2 .8 1.0 .3 .7 1.0 .6 .000a .6 .000a .6 .000a .6 .000a .6 .000a .6 .000a .6 .000a .6 .000a .6 .000a .6 .000a a. Alternative hypothesis states that the proportion of cases in the first group < .6. Validation results of the binomial test indicates that the overall model has been approved and validated by experts, of course, in final question of the questionnaire based on the operational aspect of the model, the experts agreed were less than other questions. 6.Conclusion Due to the dynamic capabilities of an organization to achieve sustainable competitive advantage, new approaches in the field of strategic management is considered. According to previous studies, knowledge management, organizational agility and innovation, including resources that can stabilize and improve the organization's competitive position. Therefore using the capabilities of KM, OI and OA simultaneously, reinforce understanding, response and knowledge-based management approaches to suit the need of restructuring in accelerated change in the competitive environment and help organizations sustainable competitive advantage achieving. 7.Future Studies 83 Applied mathematics in Engineering, Management and Technology 2 (2) 2014 M. Jafari et al • Integrate change management processes in the model can also incorporate a new approach to achieve sustainable competitive advantage of the dynamic features. • Model development and consideration of processes of knowledge management, organizational agility and innovation as well as capabilities can also be considered. • In corporate life cycle and the degree of maturity of the organization can also consider the other factors in the model can be noted. References Abesi, S., Mohammadi, M. and Shafieepur, D. 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