Impact of knowledge management on organizational performance: An application of structural equation modeling

Abstract

Purpose

The purpose of this paper is to explore the dynamic relationships among the essential knowledge management (KM) constructs, i.e. strategy, enablers and processes, and to establish their links to organizational performance using a holistic integrated model.

Design/methodology/approach

The structural equation modeling approach was used in the research study. The primary data were collected from IT managers in Indian software firms.

Findings

The study successfully tested an integrated KM model in an Indian scenario. The study found that the KM strategy, enablers and processes had a significant positive relationship with the organizational performance. An appropriately designed KM strategy significantly influenced the KM enablers and KM process. KM enablers nurtured in an organization positively impacted the KM process. Furthermore, the KM process partially mediated the relationship between the KM strategy and organizational performance, and partially mediated the relationship between KM enablers and organizational performance.

Originality/value

This study is one of the few to empirically establish how the essential KM constructs of strategy, enablers and processes together impact organizational performance.

Citation

Payal, R., Ahmed, S. and Debnath, R.M. (2019), "Impact of knowledge management on organizational performance: An application of structural equation modeling", VINE Journal of Information and Knowledge Management Systems, Vol. 49 No. 4, pp. 510-530. https://doi.org/10.1108/VJIKMS-07-2018-0063