Investigating the Effectiveness of Business Strategic Orientation on Organizational Performance Considering the Intervening Role of Knowledge Management

Objective Today competitive condition and quick changes adds to the importance of the need to analyze the companies’ performance in order to reach to higher positions as compared to the opponents’ performance. The present study mainly aims to investigate the role of business strategic tendency in organizational performance considering the intervening role of knowledge management. The researcher seek to evaluate 1) the relationship between strategic tendency and balanced point card; 2) the relationship between strategic tendency and knowledge management mechanisms; 3) knowledge management mechanisms and organizational performance; and 4) the intervening role of knowledge management mechanisms in the relationship between strategies and performance. Such a wholestic investigation has not been applied in the literature before.   Methodology The present study is descriptive-analytic in nature and quantitative-practical in purpose. The data were analyzed based on structural educational modeling. The statistical population of the present study includes all active companies in the supreme informatics. A sample of 250 principals, managers, and directors in the field of information technology were randomly selected. At the end, 181 questionnaires were correctly filled and used for further analysis.   Findings The obtained coefficient for all the tendencies and aspects pertinent to the relationship between organizational strategic tendency and knowledge management is higher than 0.3 which indicated there is a relationship between the two variables. However, regarding risk taking, all the coefficients are negative which shows an opposing relationship between the two variables. The coefficient pertinent to the relationship between tendency and different aspects of performance are almost all fewer than 0.3 which indicates an insignificant relationship between the two. Knowledge management has proved to have a strong relationship with aspects of performance. It should be said that knowledge management acts as an intervening variable between tendency and performance.   Conclusion The results approved the effect of organizational strategic tendency on performance; so, the companies should enhance their strategic tendency in order to improve their performance and make organizational decisions and put them into action based on the business strategies. This may also help improve knowledge management in an organization. Moreover, the companies can exploit knowledge management mechanisms in order to improve their performance (hypothesis 3). Finally, it is recommended that organizations should first improve their analytical tendencies, background and future expectation so as to improve their knowledge along with application of knowledge management mechanisms.