ORGANIZATIONAL MEMORY, KNOWLEDGE MANAGEMENT, MARKETING INNOVATION AND COST OF QUALITY: EMPIRICAL EFFECTS FROM CONSTRUCTION INDUSTRY IN JORDAN

The present research paper was conducted to achieve fourfold objectives. First, to explore the effect of organizational memory (OM) on marketing innovation (MI). Second, to recognize the effect of OM on cost of quality (COQ). Third, to verify the effect of knowledge management (KM) on MI. Finally, to find out the effect of KM on COQ. Therefore, the paper hypothesized that OM is significantly and positively related to MI as well as to COQ, and that KM is also significantly and positively related to MI and COQ. The sample of the research consisted of 87 companies working at construction industry in Jordan, from which data were collected using a questionnaire developed based on related works. The questionnaire comprised four parts covered the intended constructs, i.e., OM, KM, MI, and COQ. Each of the variables was measured using eight items. Reliability and validity were assured based on the findings of the measurement model. Then, a total of435 questionnaires were handed to the participants. Out of the questionnaires distributed, 356 questionnaires were returned complete and valid, with a response rate equals 81.8%. The paper revealed, on the ground of the results of the structural model, that OM is significantly and positively related to both MI and COQ, and that KM is significantly and positively associated with MI and COQ. The paper contributed significant results from which both managers and researchers would benefit. Particularly, organizations are called to consider their past experiences and knowledge along with their ability to construct, disseminate and apply it in marketing innovation and reduction of quality-related costs due to the fact that both OM and KM form cornerstones in the success path of organizations. Despite the importance of the upshots concluded in the current research, it is noteworthy to state that this research is limited to the understudy companies, the sample used, the measurements utilized, and the way in which constructs were conceptualized. Further studied are in demand to extend the conceptualization of organizational memory using more measurements, relationships, populations, and industries to give the opportunity to OM-related findings to be generalize on a greater level among organizations. On the other hand, possible relationships in the research model still unrevealed, i.e., the effect of OM on KM, the effect of MI on COQ.