The Study of the relationship between Knowledge Management and Performance of Marketing in companies Manufacturing (Case Study: Food Manufacturing Companies in Sanandaj City)

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Vol-7, Special Issue3-April, 2016, pp1884-1894 http://www.bipublication.com

Research Article

The Study of the relationship between Knowledge Management and

Performance of Marketing in companies Manufacturing

(Case Study: Food Manufacturing Companies in Sanandaj City)

Kordbehman Reza1 and Safyar Amini2*

1_{M.A graduated in Management, Sanandaj Branch,}

Islamic Azad University, Sanandaj, Iran (kallantaryy_875@yahoo.com)

2*_{Assistant professor, Department of Economics, Sanandaj Branch,}

Islamic Azad University, Sanandaj, Iran (aminisafyar@gmail.com) *Author for Correspondence

ABSTRACT

This study examined the relationship between knowledge management and performance of marketing in food companies manufacturing in the city of Sanandaj. The population of this study included all employees form the food companies manufacturing in the city of Sanandajin 2015. All members of population were 380 persons that were selected using Cochran formula 199 persons. A standard questionnaire to collect information and investigate the relationship and Hypotheses was used that its validity and reliability was approved. The research method is descriptive of a kind correlational. The final findings of research showed a significant relationship between knowledge management and performance of marketing in food companies manufacturing in the city of Sanandaj. There is also a significant relationship between four variables marketing assets, investments in property marketing, internal marketing capabilities and capacities of foreign marketing company with variable rate performance of Food Company’s manufacturing in Sanandaj proven.

Keywords: knowledge management, performance, marketing assets, investments in property marketing, internal marketing, capacities of foreign marketing

1. INTRODUCTION

Performance is one of the most important components in management research and is the most important criteria for measuring the success of businesses. Performance is the sum of behaviors that people exhibit in connection with the job. The purpose of the organization as well as the way in which the organization can do work or perform their duties in an excellent manner (Carter, 1383). Talents, knowledge and skills and motivation of the personnel, resources and facilities as well as job opportunities are what affect the performance of employees.

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the domestic and international environment to achieve.

With the increasing importance of marketing in modern business, organizations need to manage their marketing knowledge (Hanvanych et al., 2003). Marketing knowledge management refers to certain scope of knowledge related to marketing processes of the organization. Changes in marketing activities require the existence and use of asset and capabilities relevant marketing knowledge management to achieve organizational goals. Therefore, and in connection with the definition of Mackintosh (1998) marketing knowledge management can be defined as follows: that includes the detection and resolution assets and capabilities-driven marketing, planning and control of assets and capabilities to undertake measures to improve organizational goals (Mackintosh, 1998)

Troilo about marketing knowledge management process, the fact emphasized that in the current market, competitive advantage for companies is achieved, based on sound science and are market-oriented. Also stressing the role of marketing in the knowledge-based companies that target their marketing knowledge creation, sharing with other sectors and promote the use of this knowledge(Troilo 2007).

It seems to produce knowledge in the field of marketing, publishing and savings that could be the reinforcement of the ability distribution channels marketing, marketing research, improved goods or services, the promotion and pricing. Experience shows that firms with superior marketing capability significantly beyond the performance of their competitors (Tsai and Chia, 2004).

Awareness of cause marketing knowledge management needs of customers, creating superior value for them, collect information and distribute it and use it in decision making and strategic planning and harmony between the part. through knowledge management of Marketing can be created the organizational learning,

innovation, organizational structure and deeper strategies and create competitive advantage (Hamid-Zadeh and et al., 2012).

In view of the above, main question of this paper is that to what extent the relationship between knowledge management of marketing and performance offood companies manufacturing in Sanandaj is significant?

2. THEORETICAL BACKGROUND AND MODEL PRESENTATION

To success in today’s global economy, based on customer satisfaction. To achieve this, companies should develop their own performance measurement system to motivate your staff expectations for process control Customers meet the increase.

The world as an information society in which knowledge plays the role of capital. The Knowledge mixture of experience, quality and quantity of information is structured as a template for integrating and coordinating the evaluation and provides experiences and information. Knowledgeis a perception and understanding that through experience, reasoning, intuition and learning can be achieved (Noroozian, 2006). Today, information and knowledge become an important source of capital formation in organization. As it can be argued that modern organizations without knowledge, as the company cannot regulate themselves and maintain their vital in today's rapidly changing environment. (Mekhmeli et al, 2011)

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implement exploit opportunities in a competitive market.

Researchers for knowledge management have placed many different meanings. On the one hand data and organize it, specialties and experiences to introduce staff limitations; and on the other hand it is a concerted effort to get to know the critical concepts whose goal is to increase innovation, productivity, cooperation, serving the customers and facilitate the flow of information, and so on(Davenport and Marchand, 2001). In the organizational context, the knowledge as a whole consists of several sub-knowledge. The sub-knowledge based on Porter's value chain consist of: knowledge, The knowledge management, human resources, technical development knowledge, The knowledge logistics (internal and external), operational knowledge, marketing knowledge and sales and service knowledge. One of the most sub-knowledge, marketing knowledge. Peter Drucker says since the goal is the customer's business, every business has only two functions: marketing and innovation. Marketing and innovation are values and other costs (Hamidizadeh and Azizi, 2009). knowledge-based marketing is based on the assumption that knowledge, the key to a company’s source for creating, strengthening and maintaining the economic interests(Abaspour and Barotyan, 2010).

In the age of customer orientation, customer relationship management and customer knowledge management, the issues are very important and both emphasize on how to integrate and distribute resources to improve organizational activities and increase competitive advantage. Correct management of customer communication, increase customer satisfaction and loyalty, as well as understanding customer needs due to customer knowledge management, which would finally establish intimate relationships with customers is very important. When in one organization, knowledge dissemination and distributed freely, knowledge

of potential values become apparent. If used properly knowledge in an organization and create new knowledge Significantly, this would not only increase productivity but also enhances They are creativity, knowledge management systems to improve organization's current processes. They also discussed the management decision-making support systems offer better solutions. In today's information society, human capital has become more important than the economic capital(Tsung, Chinho, 2009).

The use of knowledge management in organizations reduce costs, improve quality, productivity and profitability of the organization. It seems that extensive studies must be done before implementing knowledge management. Index indicates, however, to implement a comprehensive system of knowledge management is a systematic approach is needed, but some degree of this system can be implemented with existing resources in organizations(T-Sung, Chin-ho, 2009).

application of marketing knowledge covering Indicessuch as the application of knowledge and accountability, and experience marketing to customer needs, technology changes, changes in competition, the use of marketing expertise for specific purposes, the use of knowledge and marketing expertise in decision making and success in the implementation and application of knowledge and marketing expertise, knowledge reuse and experiences of successful marketing, etc (A. Zadeh et al., 2013).

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from a unique vantage point to explore the knowledge management process. He emphasizes the fact that in the current market, competitive advantage, achieved for companies that are based on knowledge based and market-oriented. It is also stressing the role of marketing in knowledge-based companies that target their marketing knowledge creation, sharing with other sectors and promote its use in contemporary challenge for having knowledge(Teroili 2007) Knowledge management of market includes three stages: knowledge development, knowledge dissemination and application of knowledge. But we must note that the flow of knowledge through this process may look different with gradation and coefficients. Companies need to improve their performance marketing knowledge management as a strategy would create value for customers, increasing efficiency and effectiveness, creativity and ability to adapt to changes(Akhavan and Chyrany, 2012)

Experimental Research in marketing knowledge management emphasize on three: the first view in relation to the focus and operational knowledge management and marketing knowledge management. For example, Carrillo et al (2003) focused on knowledge management strategy and while Wong (2004) focused on that he had called “knowledge management value chain”. On the other hand, Lin Tsang (2005) on the “knowledge gap” focused. While Tsai and Object (2004) focused on the production, distribution, and storage process of knowledge. The second observation in relation to the nature of the relationship between knowledge management regardless of focus or its scope, and performance of the organization. For example, Carrillo et al (2003) have developed the relationship between knowledge management and organizational performance. Tanryvrdy (2005) Knowledge Management and Information Communication Technology as a mediator between the company's performance review. In addition, and in an emerging market, Tsai and Object (2004)

Towards a structure of knowledge management marketing model developed marketing capabilities and organizational performance. It is expected that diversity management by defining the differences researchers have knowledge and understanding. The third observation in relation to a mismatch between how researchers define knowledge management and organizational performance as the dependent variable is measured. For example, Klaykvmb (2001) to measure the performance of the market through focused market share and sales growth. On the other hand, Lin Tsang (2005) on firm performance, measured quantity, cost, market share, competition, innovation and growth focused. Tanyvardy (2005) focused on the company’s performance, although this was measured by return on capital and assets. While Tsai and Object (2004) organizational performance through sales growth, profitability, customer satisfaction and adjustment variables were measured.

3. THE CONCEPT OF PERFORMANCE

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obstacles that interfere with job performance, help. Ability and motivation can lead to performance, but organizational barriers can restrain them. Good job performance ability and incentive needs. Organizational barriers, such as poor training can interfere with good job performance (Rahnavardy, 59: 2008).

To success in today’s global economy, based on customer satisfaction. To achieve this, companies should develop their own performance measurement system to motivate your staff expectations for process control Customers meet the increase.

4. LITERATURE REVIEW

Bigelow and others (2012) in his study examines the relationship between job performance and job satisfaction among employees Gilan Regional Electricity, they concluded that the hypothesis Positive relation between job satisfaction and job performance between regional power staff is Gilan province. Nesbi (2008) in a study to examine the relationship between organizational intelligence and creativity and job performance based pay model Albrecht. The results showed that no significant relationship exists between all components of organizational intelligence and job performance. Lopez (2005) study entitled The relationship between burnout and mental health found that self-esteem is associated with burnout and job performance. Wright and colleagues (1995), according to the Meier model, the role of personality in performance and argue they were investigating the personality traits such as self-esteem of the individual differences in value, performance, or believe reflects the needs. So they were proposed that the motivation of people to do the job reflects the personality and attitude reflects a person's ability to do the job. So theyhypothesized that performance should be predicted by the interaction between the ability of character. Witt et al (2002) interactive relationship between personality traits and organizational policies with underlying performance with a sample of 540 employees of

an organization examined. The data collection instruments were: Personality Inventory (five major contributor) and performance data fields (job sacrifice, relieving interpersonal). The results showed that the conscience significantly associated with dedication job And compatibility with relieving a significant relationship between extraversion and the individual is relieving an interpersonal relationship. Kakrmn (2012) in a study titled "Effective Communication Skills for library management: relationships between managers and librarians" concluded that communication skills as one of the skills used by managers to increase job satisfaction used an enormous impact on the Performance librarians, user feedback and thus the success and advance the goals of the library. Bragard (2010) A study was conducted on 96 medical students, came to the conclusion that communication and emotional management skills training significantly increased the participants' self-efficacy and the stress they could be reduced. Joonhee and colleagues (2010) in research, communication skills through role playing to teach students of psychology and medicine. The results showed that students of both disciplines his self-efficacy level after the intervention than before the education, the higher estimate. Students their skills in communication, motivational interviewing, empathy and reflection of feelings and change better than the previous estimate.

5. CONCEPTUAL MODEL

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In evaluation and selection of models in this study was an attempt to model choice that matches and more consistent with the conditions in the community, cultural values and behaviors and characteristics of the population. The conceptual model of this study suggest was taken from Akroush & Al-Mohammad model. Akroush in 2010 in his paper, studied marketing knowledge management model to check that the model based on the theories of Dee and the Weasleys, 1998. Bhardwaj, 1993. Friedman, 1999.sarbv et al., 2007. This model says that the company’s vision and its competitive advantage is largely related to differences in the organization's assets.Theorists such as Spender and Vig also claim that knowledge-based assets as well as the performance depends on the successful programs of this asset in operational activities (Akroush 2010).

Fig. 1: conceptual model of research (taken from the model of Source: Akroush & Al-Mohammad, 2010)

The population in this study has been selected, all employees food industry based in the city of Sanandaj in Year 2015 is the number of them during their research of 380 people has been that since access to all members of society did not exist through Cochran's formula sample size of 199 was calculated on the basis of the number of employees per company. To measure the variables of marketing knowledge management and performance of the article Akroush & Al-Mohammad as the impact of marketing knowledge management on organizational performance (2010) was used. The questionnaire used is the standard that researchers along with experts in the field designated goals and assumptions of the management of reference data and its validity was confirmed. Questionnaire has

24 questions.

6. RESULTS Reliabilitytest

To calculate the reliability coefficient of the measurement tool, various methods are used such as Cronbach Alpha. In this paper, to determine the reliability of the method, Cronbach Alpha is used.

In this questionnaire, the value of Alpha is about 0.865 and now, this coefficient is calculated for each variable separately.

Table 1. Values of Cronbach Alpha for each of the variables

variables Alpha

performance 0.859

Create marketing assets 0.852

Create investments in marketing property 0.862

Internal marketing capacity 0.883

Foreign marketing capacity 0.854

Overall 0.865

Investigation of the normality of data

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evaluated higher than 5% and hence, there is no reason for rejecting the null hypothesis based on normality of data. In other words, research data is normal So parametric tests used to evaluate hypotheses.

Table 2. Results of Kolmogorov – Smirnov test

performance

Marketing Knowledge Management

Create marketing

assets

Create investments in marketing

property

Internal marketing

capacity

Foreign marketing

capacity

Mean 3.52 3.41 3.29 3.52 3.40 3.43

Standard

deviation .96 .94 1.1 .96 .95 .97

Kolmogorov

statistic .08 .41 .13 .07 .17 .15

Test of research hypotheses

In this study five hypotheses in the form of one main hypothesis and four secondary hypothesis proposed. In order to test the hypothesis, the Pearson correlation coefficient and regression was used.

1. There is a positive and significantrelationship betweenMarketing Knowledge Managementand performance of companies producing foodin Sanandaj city.

According to the results table3, because the level of significantly is smaller than 0.05 so H0 is not confirmed and the research hypothesisthat “there is a positive and significant relationship between Marketing Knowledge Management and performance of companies producing food in Sanandaj city” has been accepted.

Table 3.results of Pearson’s correlation between Marketing Knowledge Management and performance

So between performance of companies producing foodandMarketing Knowledge Management there is a positive relationship and the correlation coefficient is equal to .887.

2. there is a positive and significant relationship between Create marketing assets and performance of companies producing foodin Sanandaj city.

According to the results table 4, because the level of significantly is smaller than 0.05 so H0 is not confirmed and the research hypothesisthat “there is a positive relationship between Create marketing assetsand performance of companies producing foodin Sanandaj city” has been accepted. So between performance of companies producing food andCreate marketing assets there is a positive relationship and the correlation coefficient is equal to 0.679.

Table 4. Results of Pearson’s correlation between performance and Create marketing assets

3. there is a positive and significant relationship between Create investments in marketing property and performance of companies producing food in Sanandaj city.

According to the results table 5, because the level of significantly is smaller than 0.05 so H0 is not confirmed and the research hypothesis that “there is a positive relationship between Create investments in

performance of companies producing food

Marketing Knowledge Management

Pearson correlation coefficient 0.887

significance level 0.000

number 199

Create marketing assets

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marketing property and performance of companies producing foodin Sanandaj city.” has been accepted. So between Create investments in marketing property and performance of companies producing foodin Sanandaj city there is a positive relationship and the correlation coefficient is equal to 0.89.

Table 5. Results of Pearson’s correlation between Create investments and performance

4. There is a positive and significant relationship between Internal marketing capacity and performance of companies producing foodin Sanandaj city.

According to the results table 6, because the level of significantly is smaller than 0.05 so H0 is not confirmed and the research hypothesisthat “there is a positive relationship between between Internal marketing capacity and performance of companies producing foodin Sanandaj city” has been accepted. So between Internal marketing capacity and performance of companies producing food in Sanandaj citythere is a positive relationship and the correlation coefficient is equal to 0.90.

Table 6. results ofPearson’s correlation between Internal marketing capacity and performance

5. There is a positive and significant relationship between External marketing capacity and performance of companies producing foodin Sanandaj city.

According to the results table 7, because the level of significantly is smaller than 0.05 so H0 is not confirmed and the research hypothesisthat “there is a positive relationship between External marketing capacity and performance of companies producing foodin Sanandaj city” has been accepted. So there is a positive relationship between External marketing capacity and performance of companies producing foodin Sanandaj city and the correlation coefficient is equal to 0.95.

Table 7. Results of Pearson’s correlation between External marketing capacity and performance

After reviewing the role of Marketing Knowledge Management on performance of companies producing food in Sanandaj city and acknowledge that Marketing Knowledge Management and its components have a positive correlation with the performance of companies producing food. Next, it is checked that each of the four dimensions of Marketing Knowledge Management on performance of companies producing food. In this regard, using the Friedman test ranking each factor. The results of which are shown in Tables of 8.

Table 6. Results of the mean scores of Friedman test Marketing Knowledge Management dimension on performance of companies producing food

Create investments in marketing property

number 199

Internal marketing capacity

number 199

External marketing capacity

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communication capabilities dimension mean scores ranking

External marketing capacity 2.34 1

Create marketing assets 2.18 2

Internal marketing capacity 1.47 3

Create investments in marketing property 1.12 4

7. CONCLUSION AND

RECOMMENDATIONS

In each research, researcher intends to repeat the previous researches using the same models in another population and investigate the theoretical concepts in the form of a new model. In both cases, at the end of research, researcher presents a comparison between results of his/her work and that of previous works and finally, recommendations are provided.

In this section, according to results, applied recommendations are presented for managers of the company and then, some other useful recommendations are presented as well.

The results show thatthat between marketing knowledge management performance and manufacturing companies in Sanandaj city there is a significant relationship. There is also a significant relationship between four variables marketing assets, investments in property marketing, internal marketing capabilities and capacities of foreign marketing company with variable performance food companies in Sanandaj city. So If companies can manage their marketing knowledge management as well apply by providing appropriate training programs, conduct Performance in the path of progress and They could use of marketing knowledge management as a positive force for better performance, efficiency, innovation and change, and use it on the path of progress and development of their performance. According to above, following recommendation are presented toup grade the performance of manufacturing food companies:

- Companies need to make progress in marketing and market segmentation target market in priority setting.

- Companies need compared to their competitors, to provide differentiated services. - Companies need to do more accurate and up

to date use of appropriate technology.

- Company to produce new products and to conduct targeted advertising for that product. - Companies to make goods for better, more

accurate and faster to use appropriate channels to reach customers.

- Companies can use the training classes or factors such as wage increases, your staff motivated and make them more capable. - Companies to promote their products

marketingusing of short-term and long-term programs

- Employing staff who have the marketing knowledge and skills needed to understand and recognize the needs of customers.

- Companies use from the development programs and staff training and do not neglect their bonuses and rewards.

In overall manufacturing companies to improve their performance is better to turn targeted marketing. In targeted marketing vendors have attempted to identify the main part of market. Then, select one or more parts of the market for addressing and then, nearly as commodities and specific marketing programs that precisely arrange for each of these market segments. so targeted marketing requires marketers to do the following three main steps:

1- Market segmentation; determining the leading groups of buyers, buyers who might require separate products or combination of marketing elements.

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3- Positioning in the market; to determine and confirm the outstanding advantages and basic goods to travel. Finally, after market segmentation target market selection will be determined by our customer Who are; how, where, when, how much and how often they shop.

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