The Mediating Effect Of Competitive Advantage On The Relationship Between Organizational Learning And Collective Human Capital With Firm Performance In Mnes

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Date
2018-09
Authors
Phynthamilkumaran Siea Dass
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Publisher
Universiti Sains Malaysia
Abstract
Malaysia have been an appropriate country for MNEs to invest and expand their manufacturing capabilities since 1970s. MNEs from United States of America, Europe, Japan, China and Korea covering segments like automotive, medical, electric and electronics, aviation as well as food and beverages were being heavily invested. MNEs in Malaysia increases career opportunities as well as enhances knowledge and skills of Malaysian employees. In this ever emerging market with full of competitiveness, organizational learning and collective human capital is being impacted with employee movement within MNEs in Malaysia. In line with this study conducted to find out the impact towards organizational learning and collective human capital towards firm performance with competitive advantage as a mediator was the main contribution done. This is a cross-sectional study. Systematic probability sampling was used as sampling technique for this research. The respondents were identified as managers from respective MNEs. Total of 237 usable respondents were responded and tested eleven hypotheses. As a result with direct relationship towards competitive advantage, knowledge acquisition, knowledge distribution, organizational memory and collective human capital was found to be significant. Even though knowledge interpretation was found to be significant, due to its negative relation it was rejected as the study was focusing on positive relation only. It is suspected, despite of having good training and coaches who able to share the knowledge but the adaptability of the recipient determines the success of knowledge interpretation was found to be weak. When competitive advantage mediates knowledge distribution was found not to be significant due to skilled employees opt to move around resulting knowledge halt. Despite of the significance for knowledge interpretation, due to its negative relation it was rejected due to the recipient adaptability and capability as well when competitive advantage mediates. The findings from this research contributes to the context of MNEs in Malaysia by affirming knowledge acquisition and organizational memory as well as collective human capital were well established. Knowledge distribution and interpretation has to be enhanced by MNEs here through teamwork and relationships between employees. Despite of that, this research have contributed successfully by integrating and enhancing Resource Based View (RBV) and assimilation theory in Malaysian manufacturing industry.
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Industrial management
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