1. business and industrial
2. business operations
3. management
4. supply chain management

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
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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
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(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
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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
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Technical capabilities
Social capabilities
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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
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Process capabilities
infrastructure
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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
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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
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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
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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.
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-
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
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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:
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-
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.
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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
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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.
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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.
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