The effect of knowledge management practices on firm performance

Abstract

Purpose This research proposes to study the connection between knowledge management practices and firm performance. Design/methodology/approach Theoretical relations are tested through an empirical study carried out on 222 Spanish firms in the biotechnology and telecommunications industries. Findings This paper shows how the firms that adopt knowledge management practices obtain better results than their competitors. Research limitations/implications The subject of principles has not been considered a dimension of knowledge management. New avenues of inquiry are opened considering this dimension. Practical implications It determines practices that have a positive incidence on firm performance. Originality/value The conceptualization of knowledge management practices represents a theoretical innovation. This scale can be used in other knowledge‐intensive industries. The paper concludes that these practices have a positive incidence on firm performance.

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