Leveraging organizational performance via knowledge management systems platforms in emerging economies

Abstract

Purpose – The purpose of this paper is to examine the impact of adopting knowledge management systems (KMSs) on firms’ performance. Although many organizations have adopted the notion of KMS, there is little evidence on the effect of KMS on a firm’s performance, especially in an emerging economy like the Egyptian one. An intensive literature review is conducted not only to synthesize but also to establish the conceptual foundations for the systemic perspective of knowledge management and its potential impact on knowledge management performance in an emerging information and communication technology (ICT) industry. This systemic perspective fits with the evolutionary nature of such an emerging industry in Egypt. Design/methodology/approach – The empirical study of this work is conducted on knowledge-intensive firms operating in the field of ICT. The paper is descriptive in nature where a quantitative research design is adopted to survey senior managers’ perceptions – from both national and multinational enterprises operating in Egypt – on the pay-off maintained from creating an integrative KMS. The primary data are collected from 90 managers holding significant top positions related to the knowledge management area. A linear simple regression test is conducted to discover the initial association between the conceptual model’s key variables. Findings – The results of this work reveal that there is a positive association between each of the six elements that constitute a KMS, namely, knowledge: creation, acquisition, codification, sharing, transfer and measurement, and the perceived knowledge management performance. Besides, there is a significant positive association between the adopted total KMS and perceived knowledge management performance. This study provides strong evidence that KMSs are essential to improve firms’ performance. The results of t-test and analysis of variance assert that the gender, types of business, year of experience and age of respondents have no significant difference to perceived knowledge management performance resulting from KMS. Research limitations/implications – The findings reflect the fact that informants have to deploy six components that constitute a KMS to realize improvements in knowledge management performance. This work also highlights a number of findings of great value to managers in the ICT sector. Yet, the empirical study does not cover all the issues which are linked to KMS implementation. Issues such as culture, trust and leadership role in building a significant KMS are not examined in this work. Also, the generalizability of the findings to other industries must be considered carefully. Although the findings are statistically significant, the framework developed may be quite specific to the ICT organizations. Practical implications – This paper enhances managers’ understanding in deploying the notion of KMSs to leverage their corporate performance. It also provides managers in emerging markets with an integrative perspective to fundamental issues that encounter them when they put those KMSs into practice. Social implications – This research advances understanding of the application and benefit of KMS in ICT firms in several ways: it provides a better understanding of KMS and practices currently being applied in the Egyptian ICT firms. There had been little or no industry-wide empirical research on this topic to date, it provides a better understanding of knowledge processes in the ICT sector; specifically, the links between knowledge acquisition, creation, codification, sharing, transfer and measurement, and their links to performance, the measurement instruments developed for this research constitute a reliable set of construct measures that provide a basis for future research. Originality/value – This paper advances the knowledge management subject by synthesizing past studies into an integrative KMS that directs scholars’ attention on how to examine the notion. It is claimed that KMS help those managers improve core business processes, management decisions and, accordingly, firms’ performance. Besides, this study suggests a set of implications for managers in an emerging market that has recently adopted the notion of KMSs. This study also reflects the viewpoints and perceptions of key managers in a strongly evolving knowledge-intensive industry that has an increasing impact on the GDP of an entire nation throughout the past two decades.