Knowledge management, problem solving and performance in top Italian firms

Abstract

Purpose The purpose of this paper is to empirically test the link between knowledge management practices, problem-solving processes and organizational performance. Design/methodology/approach This study uses survey data from 112 leading Italian companies. To test the structural relations of the research model, we used the partial least squares method. Findings Results show a strong relationship between knowledge management practices and intermediate activities of creative problem solving and problem-solving speed. In addition, creative problem solving has a direct impact on both organizational and financial performances, whereas problem-solving speed has a direct effect only on financial performance. Research limitations/implications The focus on top Italian firms limits the generalizability of results. Practical implications This study provides empirical evidence of the importance of knowledge management practices for problem-solving activities and firm performance. Originality/value The present paper fills an important gap in the extant literature by conceptualizing and empirically testing the relationship between knowledge management, problem-solving processes (creative problem solving and problem-solving speed) and firm performance. This study is the first ever to study these relationships within the Italian context.