Analyzing the effects of knowledge management on organizational performance through knowledge utilization and sustainability

Abstract

In today's turbulent business environment, gaining sustainable competitive advantage requires organizations to manage knowledge capabilities effectively and use resources efficiently. The primary objective of this study is to explore the relationship among knowledge management (KM) processes, including knowledge generation, knowledge codification, and knowledge sharing, with knowledge utilization, sustainability, and organizational performance. The research mainly examines both the direct effect of KM on organizational performance and its indirect effect through sustainability and knowledge utilization. A theoretical framework is introduced and tested using data gathered from companies within the services sector in Kuwait. The results indicate that knowledge utilization and sustainability fully mediate the relationship between KM and organizational performance. Both knowledge utilization and sustainability exert direct and positive effects on organizational performance while being directly influenced by KM. Accordingly, it is suggested that the firms enhance their performance by effectively managing knowledge capabilities appropriately, utilizing knowledge, and investing in sustainability and organizational resources.