Knowledge Management Practices and Firm Performance: The Moderating Role of Resource Commitment

Abstract

Knowledge management has become crucial for the firm’s sustainable and long-term performance. Knowledge management practices in the firm make such exchange, transfer, and reuse of knowledge increase the efficiency of firm performance. Therefore, this study tries to investigate the relationship between knowledge management practices and firm performance in the IT sector of Saudi Arabia and to inspect resource commitment as a moderator for developing the relationship between knowledge management practices and firm performance. For analysis, this study collected data from 356 participants from the IT sector of Saudi Arabia and measured the model using SmartPLS. In the data analysis, this study found that knowledge management practices have a positive and significant relationship with firm performance, whereas resource commitment plays a vital role as a moderator for strengthening this relationship between knowledge management practices and firm performance. Further, this study also linked RBV (resource-based view) theory and KB (knowledge-based) theory, with the study’s conceptual framework to make strong theoretical and practical implications of results. In the end, this study concluded that knowledge management practices are important to firm long-term existence in the market by using accessible resources. The results of the study urge the policymakers and administrators to give more consideration to the IT sector and enable knowledge management practices to enhance the performance of the organization, as well as attain innovation in this sector within the limit of available resources.