Does knowledge management really matter? Linking knowledge management practices, competitiveness and economic performance

Abstract

Purpose -While nowadays an extensive literature promoting knowledge management (KM) exists, there is a worrying shortage of empirical studies demonstrating an actual connection between KM activities and organizational outcomes. To bridge this gap, this paper aims to examine the link between KM practices, firm competitiveness and economic performance.Design/methodology/approach -This paper proposes a framework of KM practices consisting of human resource management (HRM) and information communication technology (ICT). These both are hypothesized to impact competitiveness and economic performance of the firm. Hypotheses are then tested with structural equation modeling by using a survey dataset of 234 companies.Findings -The results show that HRM and ICT practices for managing knowledge are quite strongly correlated and have a statistically significant influence on both financial performance and competitiveness of the firm. The findings also indicate that ICT practices improve financial performance only when they are coupled with HRM practices.Research limitations/implications -The data are limited to companies from Finland, Russia and China.Practical implications -The paper contributes to managerial practice by pointing out the importance of utilizing a combination of both social and technical means for KM and illustrating that they do matter for the company bottom line.Originality/value -This paper contributes to the literature on knowledge-based organizing by empirically analyzing the performance impact of various areas of KM. It thereby tests the proposition put forth in many previous theoretical and case-based studies that KM promotes high organizational performance. It also addresses the interaction of social and technical KM practices in producing organizational outcomes.

Knowledge management and measurement: a critical review

“…Instead, they recommend that efforts should be directed towards measuring the impact of knowledge when applied (Carrillo et al, 2003). They note that the bulk of KM literature hypothesisesa causal link between KM and improved performance, despite the fact that very little research has made an explicit correlation between them (Kalling, 2003, Andreeva andKianto, 2012). Even those who conclude empirically that KM does create value are unable to quantify that value (Ibrahim and Reid, 2009).…”

An application of the knowledge management maturity model: the case of credit unions

“…This gave birth to the knowledge management discipline (Nonaka and Takeuchi 1995). In recent years, a link between KM practices and the level of organizational performance was established (Andreeva and Kianto 2012). As a result, the measurement of the impact of KM became necessary to ensure the continuity of KM initiatives.…”

Knowledge management and organizational competitiveness

“…625-626). Ustanovlјeno je da menadžment znanja ima uticaja na konačni rezultat kompanije i da upravlјanje znanjem zaista omogućuje visoke performanse; rezultati sprovedenog istraživanja ukazuju na postojanje korelacije između praksi menadžmenta lјudskih resursa i informaciono-komunikacionih tehnologija u upravlјanju znanjem, i njihov značajan uticaj na finansijske performanse i konkurentnost kompanije (Andreeva & Kianto, 2012). Međutim, u praksi, IKT pobolјšava finansijske performanse kompanije jedino u sprezi sa menadžmentom lјudskih resursa.…”