2005 Volume 13 Issue 4 Pages 17-33
Organizational IQ (OrglQ) is a quantitative measure to evaluate the efficiency of organizational functions and effectiveness of knowledge creation in a company. OrglQ treats organizations as large information processing systems. The OrglQ model hypothesizes that organization efficiency and effective knowledge creation is a function of the following five factors: External Information Awareness (EIA), Internal Knowledge Dissemination (IKD), Effective Decision-making Architecture (EDA), Organizat沁nal Focus (OF), and Continuous Innovation (CI). We tested this hypothesis using co-variance structured analysis results of a survey of fourteen high-technology companies (17 business units) conducted in the year 2000 by the Japanese Ministry of Economy, Trade and Industry (METI). Our findings show two causal models to be significant. In addition, we found that (1) the five OrglQ variables could directly be derived from survey data, and (2) there was a clear causal relationship between information-oriented factors and resource-oriented factors. Specifically, the improvement in E1A and IKD tend to contribute to better resource utilization. Also, resource-oriented factors tend to play an important role for more effective decision making.
