Abstract

This is a two part presentation. Part one introduces the continuous loop model (CLM) for improving firm performance. The CLM overlays tacit to explicit to tacit knowledge conversion processes with six sigma value stream processes, illustrating a management approach intended to accelerate the rate of knowledge creation focused on value-adding activities. Part two contributes to answering the question: What elements of organizational culture enable the CLM to work? Part two presents results from a research study investigating the cultural attributes needed to enable knowledge processes and the CLM to work effectively. Using the Great Place to Work® (GPTW) Institute lists of the 100 best companies to work for as a benchmark, financial data between 2004 and 2008 for matched pairs of companies were compared and evaluated. Cultural dimensions of the GPTW survey are credibility, respect, fairness (collectively, the Trust Index®), pride, and camaraderie. Results suggest that companies with perceived high levels of these cultural dimensions outperformed comparable firms in the same industry. Quantitative data supports the suggestion that elements of organizational culture, primarily trust, form the intangible link between knowledge processes and firm performance. The CLM strategies implemented in organizations with high levels of trust, pride, and camaraderie may enjoy superior results.