Impact of knowledge management processes on organizational performance: the mediating role of absorptive capacity

Abstract

PurposeExisting research on knowledge management processes (KMPs) and absorptive capacity (ACAP) is primarily conceptual and descriptive in nature, and empirical research confirming the real impact of KMPs when developing ACAP is lacking. Furthermore, the relationship between ACAP and organizational performance (OP) has not been adequately studied. Hence, the purpose of this paper is to introduce a comprehensive, delineated and integrated conceptual model which encompasses KMPs, ACAP and OP. Then, an empirical investigation is undertaken to test the relationships among the proposed study model variables.Design/methodology/approachIn total, 245 questionnaires were useable. Partial least square 3.3.3 is utilized to examine the validity of the measurement model and test the hypotheses.FindingsThe findings of this study suggest that KMPs influence ACAP and ACAP affects OP. Finally, the results show that KMPs affect OP directly and indirectly through ACAP (mediator).Practical implicationsThe results of this study help managers to ascertain the managerial practices that can be employed as well as determine the level of effort and resources necessary to enhance ACAP. Additionally, managers should shed additional light on the ACAP's positive implications for OP.Originality/valueThis study focuses on the conceptualization of KMP and empirically tests the effect of these individual processes on ACAP and on OP. Finally, the relationship between KMPs and OP, although implied, needs to be addressed empirically in the research literature through utilizing ACAP as mediator between KMPs and OP, this appears to be the first study to try to achieve this main objective.