Knowledge Management and the Roles it Plays in Achieving Superior Performance

Abstract

Knowledge is one of the most critical organizational resources, and Knowledge Management (KM) has been identified as one of the key aspects in organizational strategic management. In addition to creating functional value by protecting and utilizing organizational knowledge, strategic knowledge management also serves as a central nerve system within the organization that facilitates organizational learning, organizes the market intelligence about customers and competitors, maximizes the value of organizational knowledge, and contributes towards superior organizational performances. The objectives of this chapter are to develop a theoretical model that delineates the relationship among several organizational variables that are of strategic importance to performance, including Market Orientation (MO), Learning Orientation (LO), and KM. A national survey was conducted to collect information from managers of Canadian manufacturing companies. A total of 307 informants returned the survey. Data was analyzed using Structure Equation Modeling (SEM). The results demonstrate that a firm’s KM mediates the positive influences from the firm’s LO and MO on market performance.