Measuring the Effect of Trust, Organizational Learning on Taiwan ICT Company's Innovation and Business Performance

Abstract

Knowledge management is being acknowledged as an important issue since the advancement of technology and the globalization. In a highly competitive environment, the need to align business model with complex environments, and the need to satisfy sophisticated customers have led knowledge management as a key element of organizational design. Moreover, in the information communications technology (ICT) industry, knowledge management has been seen as a critical element to increase companies’ business performance. However, since the products and services of the ICT became a necessity for modern people, the competition to get profits has become heightened among an ICT industry. Besides, customers are captious increasingly, they compare everything to get the best one. Therefore, one way to improve ICT Company’s competitive advantage is knowledge management. Seeking to explain the knowledge management in the ICT industry, this research investigated the relations between trust, organizational learning, innovation, successful factors towards innovation, and business performance in the ICT industry. A TSLIP Model was created and analysed by using Partial Least Squares (PLS) method. The findings indicated that trust has a positive effect towards organizational learning; concern for employee plays an important role on trust. Organizational learning has a positive significant effect towards innovation; knowledge transfer and integrate has a biggest effect to organizational learning; the most important factor in successful factors is human-related factors; innovation indeed has a positive significant effect towards business performance in the ICT industry. Practical implications and suggestions were also proposed in order to improve the knowledge management and business performance for the ICT industry. Keywords: trust, organizational learning, innovation, business performance, ICT industryKnowledge management is being acknowledged as an important issue since the advancement of technology and the globalization. In a highly competitive environment, the need to align business model with complex environments, and the need to satisfy sophisticated customers have led knowledge management as a key element of organizational design. Moreover, in the information communications technology (ICT) industry, knowledge management has been seen as a critical element to increase companies’ business performance. However, since the products and services of the ICT became a necessity for modern people, the competition to get profits has become heightened among an ICT industry. Besides, customers are captious increasingly, they compare everything to get the best one. Therefore, one way to improve ICT Company’s competitive advantage is knowledge management. Seeking to explain the knowledge management in the ICT industry, this research investigated the relations between trust, organizational learning, innovation, successful factors towards innovation, and business performance in the ICT industry.A TSLIP Model was created and analysed by using Partial Least Squares (PLS) method. The findings indicated that trust has a positive effect towards organizational learning; concern for employee plays an important role on trust. Organizational learning has a positive significant effect towards innovation; knowledge transfer and integrate has a biggest effect to organizational learning; the most important factor in successful factors is human-related factors; innovation indeed has a positive significant effect towards business performance in the ICT industry. Practical implications and suggestions were also proposed in order to improve the knowledge management and business performance for the ICT industry. Keywords: trust, organizational learning, innovation, business performance, ICT industry