Gauging the impact of knowledge management practices on organizational performance – a balanced scorecard perspective

Abstract

Purpose This paper aims to explore knowledge management (KM) literature to understand the relationships among different KM practices and organizational performance (OP) in terms of the four balanced scorecard (BSC) outcomes, i.e. learning and growth, internal process, customer satisfaction and financial performance, as a measure of OP. Design/methodology/approach A systematic review of peer-reviewed journal articles has been carried out of theoretical and empirical articles to understand the linkages between KM practices and OP, accessed mainly through sources, such as ProQuest, EBSCO host, Google Scholar and other e-databases. Measures of OP have also been extracted from the literature and grouped under the four BSC outcomes to gauge the gravity of the effect. An integrated conceptual framework helps to explore the relationship between the said variables. Findings This study provides a conceptual model of the effect of various KM practices on different aspects of OP measured through BSC. It contributes to organizations by helping them understand the importance of integration of the KM efforts to obtain desirable results. It will, for the first time, put the entire organization in perspective and help managers draw a bigger picture to understand the overall effect of KM practices. Research limitations/implications First, the KM practices shortlisted for this research are extensive but the list may not be exhaustive. Second, the model is not empirically proved. Findings of the study would help in creating a roadmap to enhance performance by a successful implementation of KM practices. Originality/value This paper contributes to KM literature by adding the fact that KM practices not only affect learning and growth perspective of an organization but also have far-reaching effects on OP in terms of customer service perspective, internal process perspective and financial perspective.

Impact of knowledge management on organizational performance

“…The studies related to KM constructs are not sufficient in the Indian context. A recent study by Gupta and Chopra (2018) also pointed to the dearth of KM literature in the Indian sub-continent. A review of the literature indicates that empirical studies conducted in India are mostly surveys of the level of KM implementation in Indian business environments.…”

Compartilhamento De Conhecimento Em Um Projeto Socioambiental

“…A GC traz vantagens para as organizações, pois tem forte efeito no desempenho (Gupta & Chopra, 2019) e auxilia no aumento da produtividade e eficiência (Navimipour & Charband, 2016), o que auxilia a organização a alcançar melhores resultados, pois o conhecimento pode ser considerado o ativo mais valioso de uma organização (Wiig, 1993).…”

Linking knowledge management practices to organizational performance using the balanced scorecard approach

“…Culture refers to the values and norms existing in an organization, which have been developed, shared and passed on from one to another (Davenport and Klahr, 1998). Research has proven time and again that creating a knowledge-friendly culture is imperative for smooth flow of information essential for knowledge-based value creation (Moffett et al, 2003;Lee and Choi, 2003;Wong and Aspinwall, 2005;Hung et al, 2005;Al-Busaidi and Olfman,2005;Akhavan and Jafari, 2006;Choy Chong, 2006;du Plessis, 2007;Tunc Bozbura, 2007;Basu and Kumar Ray, 2014;Palacios Marqués and José Garrig os Sim on, 2006;Zaim et al, 2007;Valmohammadi and Ahmadi, 2015;Appelbaum et al, 2014;Vanhala and Ritala, 2016;Lee et al, 2016;Gupta and Chopra, 2017). Development of an environment of mutual trust and collaboration positively affects inter-personal interaction, facilitates knowledge sharing, leading to better yielding knowledge processes and organizational effort.…”

“…Since most KM benefits are intangible in nature, balanced scorecard outcomes (BSC) is one method of measurement (Lee et al, 2005) that may be employed to gauge the overall effect. Gupta and Chopra (2017) have proposed and developed a conceptual framework for integrating BSC in the measurement of KM performance. BSC is a strong and comprehensive metric program that can help an organization quantify the amount of effort and returns generated by different units of a business.…”