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The aim of this study is to investigate the influence of knowledge management practices on organizational performance in small and medium enterprises (SMEs) using structural equation modeling (SEM). A number of 282 senior managers from these enterprises were chosen using simple random sampling and the data were analyzed with the structural equation model. The results showed that knowledge acquisition, knowledge storage, knowledge creation, knowledge sharing, and knowledge implementation have significant factor loading on knowledge management; and also productivity, financial performance, staff performance, innovation, work relationships, and customer satisfaction have significant factor loading on organizational performance. Finally, the results of this study suggest that knowledge management practices directly influence the organizational performance of SMEs.

This study aimed at studying factors influencing the productivity of knowledge workers at the Iranian Oil Company (IOC) through factor analysis. Ninety experts working at the staff units of IOC were selected and responded to a researcher-made questionnaire. This questionnaire, the reliability of which was confirmed by Cronbach , included 50 items. Findings were analysed through second-order factor analysis using LISREL software. Findings revealed job satisfaction and capability were the individual factors which impacted productivity. In addition, of the organisational factors, participation, education, motivation and organisational communication influenced productivity. Finally, role clarity, challenging work and autonomy were the occupational factors affecting the variable. Indices for the fitness of the model 460 A. Noruzy et al.were root mean square error of approximation, adjusted goodness-of-fit index, goodness-of-fit index and comparative fit index with their scores being 0.062, 0.91, 0.94 and 0.93, respectively, indicative of the appropriate fitness for the model.