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Impact of Knowledge Management on Organization Performance

In: Business and Management

Submitted By Faysal181
Words 7916
Pages 32
THE IMPACT OF KNOWLEDGE
MANAGEMENT ON ORGANISATIONAL PERFORMANCE

jeLena RašULa1 vesna BosiLj vUkšić2
Mojca inDiHaR šteMBeRGeR3

a B st R ac t: Knowledge management is a process that transforms individual knowledge into organisational knowledge. The aim of this paper is to show that through creating, accumulating, organising and utilising knowledge, organisations can enhance organisa- tional performance. The impact of knowledge management practices on performance was empirically tested through structural equation modelling. The sample included 329 com- panies both in Slovenia and Croatia with more than 50 employees. The results show that knowledge management practices measured through. information technology, organisa- tion and knowledge positively affect organisational performance.

ke ywords: knowledge management maturity, information technology, organisational performance, structural equation modelling, survey research.

1. intRoDUction

For many companies, the time of rapid technological change is also the time of incessant struggle for maintaining a competitive advantage. It is obvious that knowledge is slowly becoming the most important factor of production, next to labour, land and capital [39]. Even though some forms of intellectual capital are transferable, internal knowledge is not easily copied. This means that the knowledge anchored in employees’ minds can get lost if they decide to leave the organisation. Therefore, the key objective of management is to improve the processes of acquisition, integration and usage of knowledge, which is exactly what knowledge management (KM) is all about [21].

KM is a process that through creating, accumulating, organising and utilising knowl- edge helps achieve objectives and enhance organisational performance. KM also consists

1 University of Ljubljana, Faculty of Economics, Ljubljana, Slovenia
2…...

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