You are here

The linkage between knowledge management practices and company Performance: empirical evidence

Journal Name:

Publication Year:

Abstract (2. Language): 
Purpose: This study explores the linkage between Knowledge management practices and company performance. Keeping in view the theoretical and empirical importance, the present study examines the predicting linkage of Knowledge management practices (sharing of best practices and building of consistent process, continues employee learning, effective management of knowledge, innovative culture development, and management of core competencies) with company performance. Methodology: The study was carried out on purposively selected sample of 412 employees at different managerial positions. They were administered questionnaires including Knowledge Management Practices and company performance. Data was operated by using SPSS version 20.Correlation and regression analysis was done to establish the relationship between various Knowledge management practices and company performance. Findings: Results of this study illustrated that all selected Knowledge management were positively related to company performance. Based on the findings, and management of core competencies was the strongest predictor of company performance, followed by innovative culture development, effective management of knowledge and sharing of best practices and building of consistent process, continues employee learning. Research limitations/implications: The paper focuses on examining the perceptual impacts of Knowledge management (KM) practices on company performance. The interpretation of results should be taken with caution.Value: The aim of this research is to investigate the relationship between Knowledge management and company performance, study the importance of Knowledge management as a source of sustainable competitive advantages for companies and to investigate how the introduction of Knowledge management practices facilitates company performance to improve. The practices that have a more positive influence on company performance are also discussed.



Alavi, M., & Leidner, D.E. (2001). Review, Knowledge Management and Knowledge Management Systems: Conceptual Foundations and Research Issues. MIS Quarterly, 25, 107-136.
Appelbaum, S., & Reichart, W. (1998). How to measure an organizations’ learning ability: The facilitating factors – part II. Journal of Workplace Learn, 10, 15–25., I., Gonzalez, A., & Sabherwal, R. (2004). Knowledge management: Challenges, solution, and technologies. Upper Saddle River, NJ: PrenticeHall.
Earl, M. (2001). Knowledge management strategies (2001).Towards taxonomy, Journal of Management Information system, 18, 215-233.
Fiol, C.M., & Lyles, M.A. (1985).Organizational learning. Academy of management Review, 10, 803-813.
Feng, K., Chen, E.T., & Liou, W. (2004). Implementation of knowledge management systems and firm performance: an empirical investigation. Journal of Computer information system, 45, 92-104.
Harlow, H. (2008). The effect of tacit knowledge on firm performance. Journal of Knowledge Management, 12, 148-163.
Hamel, G., and Prahalad, (1994). The concept of core competence. In Hamel, G. & Heene, A. (Eds), Competence-Based Competition. New York, NY: Wiley, 11-16.
Kaul, V.K. (2002). Knowledge management and innovation in technology based small and medium sized enterprises. Management Result News, 25, 8–10.
Lee, K.C., Lee, S. & Kang, I.W. (2005). KMPI: measuring knowledge management performance. Information & Management, 42, 469-482.
Leonard-Barton, D. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management journal, 13, 111-125.
Mansell, R., & When, U. (1998). Knowledge Societies: Information Technology for Sustainable Development. New York: Oxford University.
McKeen, J.D., Zack, M.H., & Singh, S. (2006). Knowledge Management and Organizational Performance: An Exploratory Survey. Proceedings of the 39th Annual Hawaii International Conference on System Sciences. Computer Society Press, Hawaii, 9 pages.
Nonaka, I. (1994). A dynamic theory of organizational knowledge creation. Organizational Science, 5, 14-37.
Ryu, S., Hee, H.S., & Han, I. (2003). Knowledge sharing behavior of physician in hospitals. Expert system with application, 25,113-122., S.C. (2005) .Managing Core Competence of the Organization. Vikalpa, 30, 49-68.
Stewart, T. (2001).The Wealth of Knowledge: Intellectual Capital and the Twenty-First Century Organization. Doubleday, Random House Inc., U.S.A.
Tat, L.W., & Stewart, H. (2007). Knowledge Management in the Malaysian Aerospace Industry. Journal of Knowledge Management, 11, 143-151.
Vestal, W. (2002). Measuring Knowledge Management. From Providers Edge Web site:
Van den Hooff, B., Elving, W.J.L., Meeuwsen, J.M., & Dumoulin, C.M. (2003). Knowledge sharing in knowledge communities. In Huysman, M.H., Wulf, V. & Wenger, E. (Eds.). Communities and Technologies. Deventer: Kluwer Academic Publishers, 119-142.

Thank you for copying data from