vii
TABLE OF CONTENTS
CHAPTER
1
2
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENT
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xi
LIST OF FIGURES
xv
LIST OF ABBREVIATIONS
xvii
LIST OF APPENDICES
xix
INTRODUCTION
1
1.1
An Overview
1
1.2
Background of the Study
1
1.3
Problem Statement
6
1.4
Research Objectives
8
1.5
Research Question
9
1.6
Scope of the Research
9
1.7
Significance of Research
10
1.8
Contribution of the Study
11
1.9
Definition of Terms
12
1.10
Outline of Thesis
14
1.11
Summary
16
LITERATURE REVIEW
17
2.1
Introduction
17
2.2
Knowledge
18
2.3
Knowledge Management
19
viii
2.3.1
Knowledge Sharing
2.4
Culture
22
2.5
Organization Culture
23
2.6
Culture of Excellence
24
2.7
Organizational Performance
27
2.7.1
Customer Satisfaction
28
2.7.2
Employee Satisfaction
29
2.7.3
Business Results
30
2.8
Prior Studies on Culture of Excellence and OP
31
2.9
Theoretical Framework
32
2.9.1
Social Exchange Theory
33
2.9.2
Denison’s Theory
34
2.9.3
Resource- Based Theory
36
2.10 Development of Research Model and Research Hypothesis
2.11
3
20
38
2.10.1 Analysis of Developed Constructs
38
2.10.2 Research Model
43
2.10.3 Components of Culture of Excellence
46
2.10.4 Research Hypotheses
57
Summary
66
RESEARCH METHODOLOGY
67
3.1 Introduction
67
3.2 Research Design
67
3.3 Overall Structure of Research Methodology
68
3.4 Survey Methodology
71
3.4.1
Questionnaire Development
71
3.4.2
Expert Validation
78
3.4.3
Translate to Persian Language
82
3.4.4
Preliminary Study
82
3.4.5
The confirmation of CoE constructs by experts
83
3.4.6
Pilot Study
83
3.4.7
Population and Sampling of the Study
87
3.4.8
Data Collection
89
3.4.9
Exploratory Factor Analysis
91
3.4.10
Confirmatory Factor Analysis
91
3.4.11
Reliability
92
ix
4
3.4.12
Validity
92
3.4.13
Second Order Factor
95
3.4.14
Inner Model Evaluation
96
3.4.15
Statistical Analysis
96
3.4.16
Mediator
100
3.4.17
Factor Ranking Method
101
3.5 Summary
101
DATA ANALYSIS AND FINDINGS
103
4.1 Introduction
103
4.2 Preliminary Study Result
104
4.2.1
Respondent General Demographic
104
4.2.2
Benefit of CoE
105
4.2.3
Discussion
107
4.3 The confirmation of CoE constructs by experts
108
4.4 Preliminary Data Analysis
108
4.4.1
Data Editing and Coding
109
4.4.2
Data Screening
109
4.5 Nonresponses Bias
111
4.6 Common Method Bias
113
4.7 Response Rate
113
4.8 Respondent General Descriptive Statistic
114
4.8.1
Gender
114
4.8.2
Age Group
114
4.8.3
Educational Level
115
4.8.4
Department Name
115
4.8.5
Job Rank (position in the company)
116
4.8.6
Work Experience
116
4.6.7
Number of Employees
117
4.8.8
Type of Ownership
117
4.8.9
Level of EFQM Excellence Award
118
4.9 Exploratory Factor Analysis (EFA)
118
4.9.1
EFA on CoE Constructs
119
4.9.2
EFA on Organizational Performance Constructs
123
4.10 Partial Least Square
125
4.11 Measurement Validation
125
x
4.11.1 Construct Type
125
4.11.2 Reliability
127
4.11.3 Construct Validity
130
4.11.4 Test for Second-Order Model of CoE
135
4.11.5 Test for Second-Order Model of OP
147
4.11.6 Conclusions on Reliability, and CFA
154
4.12 Hypotheses Testing
155
4.13 Analysis and Result of Structural Model
156
4.13.1 SEM1: The Relationship Between CoE and OP
156
4.13.2 SEM 2: Analysing the Effect of knowledge sharing as
..Mediator
5
160
4.14 Ranking of CoE construct
162
4.15 Summary
164
DISCUSSION AND CONCLUSIONS
165
5.1 Introduction
165
5.2 The Finding of Measurement Model
165
5.2.1
CoE Constructs Measurement Model
166
5.2.2
Organizational Performance (OP) Measurement Model 166
5.2.3
KS Measurement Model
166
5.3 Q1: The Extent of CoE in Iranian Manufacturing Companies
167
5.4 Q2: Relationship between CoE and OP
170
5.5 Q3: Relationship between individual factor in CoE and OP
171
5.6 Q4: Rankings of Individual CoE Constructs
171
5.7 Q5: The Mediating Impact of KS, and Q6: Relationships among
KS, CoE, and OP
5.8 Implications of the Study
174
176
5.8.1
Theoretical Implications
176
5.8.2
Managerial Implications
177
5.9 Novel Findings
178
5.10 Limitations of the Research
179
5.11 Recommendations for Future Research
179
5.12 Conclusions
180
REFERENCES
Appendices A1-K
182
214-254
xi
LIST OF TABLES
TABLE NO.
TITLE
PAGE
2.1
Definitions of Knowledge sharing
21
2.2
Benefits of knowledge sharing
22
2.3
Definitions of Culture of Excellence
26
2.4
Performance measures proposed by literature
27
2.5
Denison’s Four Organizational Culture Traits and Components
35
2.6
Comparison of CoE Constructs across Different Studies
39
3.1
Overview of Research Design
68
3.2
CoE Constructs and their Measurement Items
72
3.3
KS Measurement Items
77
3.4
OP Constructs and their Measurement Items
78
3.5
Summaries of Comments and Suggestions from Experts and
Practitioners’
3.6
79
Pilot Results of Internal Consistency Analysis for CoE
Constructs
86
3.7
Pilot Results of Internal Consistency Analysis for KS
86
3.8
Pilot Results of Internal Consistency Analysis for OP Measures
87
3.9
Convergent Validity
93
4.1
Respondent Profile of Preliminary Study
104
4.2
The main issue in manufacturing companies
105
Acceptance of CoE contribution to the organizational
106
4.3
xii
performance
4.4
The importance and practices of CoE
106
4.5
The importance and practices of Organizational Performance
107
4.6
The Importance of CoE Construct
108
4.7
Summary of the Rate of Return of Questionnaires for Final
Survey
110
4.8
T-test Between Original and Adjusted Variables
111
4.9
Chi-square Test for Nonresponse Bias
112
4.10
T-test for Nonresponse Bias
112
4.11
Common Method Bias
113
4.12
Summary of the Rate of Return of Questionnaires
113
4.13
Gender
114
4.14
Age Group of Respondents
115
4.15
Educational Level of Respondents
115
4.16
Department Name of Respondents
116
4.17
Current Position in the Company for Respondents’ Valid
116
4.18
The Number of Year in Manufacturing Companies for
Respondents
117
4.19
Distribution of Companies According to Number of Employees
117
4.20
Percentage of Type of Ownership
118
4.21
Types
of
EFQM
Excellence
Award
Certification
for
Respondents
118
4.22
KMO and Bartlett's Test for CoE Constructs
119
4.23
Results of Total Variance Explained for CoE Items
120
4.24
KMO and Bartlett's Test for OP Measures
123
xiii
4.25
Results of Total Variance Explained for OP Items
124
4.26
Summarize of EFA
125
4.27
Types of Key Constructs
126
4.28
Item Loadings for Constructs
128
4.29
Item Loadings for Constructs
130
4.30
Correlation Matrix of Constructs
133
4.31
Results of Validity – Cross Loadings
134
4.32
Results of Model-B1 Unidimensional Model of CoE
138
4.33
Results of Model-B2 Multidimensional Model of CoE
140
4.34
Correlation Matrix of Constructs
142
4.35
Correlation Matrix of Constructs
142
4.36
Results of Model-B3 Second-Order Reflective Model of CoE
144
4.37
Correlation Matrix of Constructs
146
4.38
Correlation Matrix of Constructs
147
4.39
Path Coefficient Estimation of Second-Order Reflective Model
of CoE
147
4.40
Results of Model-B1 Unidimensional Model of OP
149
4.41
Results of Model-B2 Multidimensional Model of OP
150
4.42
Correlation Matrix of Constructs
151
4.43
Correlation Matrix of Constructs
151
4.44
Results of Model-B3 Second-Order Reflective Model of OP
153
4.45
Correlation Matrix of Constructs
153
4.46
Correlation Matrix of Constructs
154
4.47
Path Coefficient Estimation of Second-Order Reflective Model
of OP
154
xiv
4.48
Summarizes of Reliability and CFA Results
154
4.49
Hypotheses H1-H11
157
4.50
Correlation
Analysis
between
CoE
Constructs
and
Organizational Performance
158
4.51
Results of Testing Hypothesis H11
160
4.52
Hypothesis H12
160
4.53
Mediator Testing for KS between CoE and OP
162
4.54
Direct Effect and Indirect Effect for KS as Mediator
162
4.55
Final Ranking based on Practices and Importance
163
5.1
Descriptive and Rank of CoE Practices
168
5.2
Correlation Analysis Result between CoE Factors and
Organizational Performance
172
5.3
Final Ranking based on Practices and Importance
174
5.4
Mediator Testing for KS
175
xv
LIST OF FIGURES
FIGURE NO.
TITLE
PAGE
1.1
Organization of the Thesis
15
2.1
Customer Satisfaction Measures (C. Lin et al., 2005)
29
2.2
Employee Satisfaction Measures (Jun et al., 2006; C. Lin et
al., 2005)
2.3
Financial Performance Measures (Lakhal et al., 2006; C. Lin
et al., 2005; Sila, 2007)
2.4
31
Production Performance Measures (Lakhal et al., 2006; C.
Lin et al., 2005; Prajogo & Sohal, 2004; Sila, 2007)
2.5
30
31
(Denison, 1990)’s Organizational Culture Model links
corporate culture to effectiveness
35
2.6
Theories of Research Model
38
2.7
Culture of Excellence Construct by Percentage
40
2.8
Culture of Excellence Constructs
41
2.9
Culture of Excellence Factors in manufacturing companies
by percentage
2.10
42
Culture of Excellence Factors in Service Companies by
Percentage
42
2.11
A proposed Research Model
45
3.1
Overview of Overall Structure Research Methodology
70
3.2
Type of Company Ownership
84
3.3
Distribution of Companies According to Number of
85
xvi
Employees
3.4
Types of EFQM System Certification
85
3.5
Winner of EFQM Excellence Award in Different Years
88
3.6
Flowchart of Analysis Steps
100
3.7
Conceptual Model of a Mediator Effect
101
4.1
CoE Construct with Measurement Items After EFA
122
4.2
OP construct with Measurement Items After EFA
124
4.3
Model-B1 Unidimensional Model of CoE
137
4.4
Model-B2 Multidimensional Model of CoE
139
4.5
Model-B3 Second-Order Reflective Model of CoE
143
4.6
Model-B1 Unidimensional Model of OP
148
4.7
Model-B2 Multidimensional Model of OP
150
4.8
Model-B3 Second-Order Reflective Model of OP
151
4.9
Relationship between CoE and Organizational Performance
159
4.10
Mediator Testing for KS between CoE and OP
161
4.11
Relationship between CoE and OP (Without Mediator)
162
xvii
LIST OF ABBREVIATIONS
AMOS
-
Analysis of Moment Structure
AVE
-
Average Variance Explained
BR
-
Business Result
CB-SEM
-
Covariance-Based Structural Equation Modelling
CFA
-
Confirmatory Factor Analysis
CoE
-
Culture of Excellence
CR
-
Composite Reliability
CS
-
Customer Satisfaction
CST
-
Clear Vision and Strategy
DE
-
Direct Effect
DF
-
Degree of Freedom
DV
-
Dependent Variable
EEN
-
Engaging and Challenging Environment
EFA
-
Exploratory Factor Analysis
EFQM
-
European Foundation for Quality Management
EM
-
Expectation Maximisation
ES
ETR
Employee Satisfaction
-
HMO
Excellent Training and education
High Degree of Motivation
HTE
-
Highly Empowered Team
IE
-
Indirect Effect
ILE
-
Inspiring Leadership
xviii
IV
-
Independent Variable
KS
-
Knowledge Sharing
MTR
-
Mutual Trust
OCO
-
Open and Transparent Communication
OP
-
Organizational Performance
PLS
-
Partial Least Squares
PLS-SEM
-
Partial Least Squares Structural Equation Modelling
QA
-
Quality Assurance
RBT
Resource- Based Theory
SCL
-
Seamless Collaboration
SCT
-
Strong Commitment
SEM
-
Structural Equation Modelling
SmartPLS
-
Statistical Software for Partial Least Squares Structural
Equation Modelling (PLS-SEM)
SPSS
-
Statistical Product and Service Solutions
VIF
-
Variance in Factor
xix
LIST OF APPENDICES
APPENDIX
TITLE
PAGE
A1
Interview Questionnaire
215
A2
Survey Questionnaire
217
B
Survey Questionnaire: Persian Language
222
B1
Original and Revised Questionnaire by Expert
Comments
227
C
Survey on CoE Practices
231
D
Letter to Experts
233
E-1
Letter Pilot Survey
234
E-2
Letter Final Survey
235
F
Pattern Missing
236
G
T-test After EM
241
H
No Response Bias
242
I
Common Method Bias
245
J
Correlation
253
K
Descriptive and Correlation
254