Linking KM effectiveness attributes to organizational performance

Abstract

Abstract Purpose – The paper seeks to identify attributes of KM effectiveness and establish their relation with business results. The research premise is that KM outcomes are difficult to measure but their contributions to organizational performance can be assessed. Design/methodology/approach – The research paper has addressed the following questions: what are the key attributes of KM effectiveness? How can management use these key attributes to leverage knowledge assets for improved organizational performance? A literature review was used to identify the attributes of KM effectiveness. Then KM professionals and practitioners were invited to participate and respond to a survey‐based questionnaire to establish important attributes of KM effectiveness. Interpretive structural modeling (ISM) was used to develop and determine the underlying relations among these key attributes. Findings – Leadership is the main driver for successful KM implementation. KM leadership is primarily responsible for supporting and sustaining a learning environment in organizations. Aligning KM initiatives with the strategic plan of organizations would direct KM efforts toward improved organizational performance such as customer satisfaction and business growth. KM initiatives promote customer satisfaction through better product or service quality. In turn, these outcomes promote new products and services, and increased revenue. Research limitations/implications – As KM practitioners and professionals have participated in this study, these results are limited to the KM discipline only. As the majority of the respondents are from for‐profit organizations, the results may be biased towards for‐profit organizations. The research findings and conclusions must be seen in the context of the profiles of the respondents and organizations they represent. Future research should focus on exploring how these attributes vary with respect to demographics and type of organization. Further research efforts should include more types of organizations from wider geographical regions. Practical implications – KM effectiveness can lead to improvements in performance such as customer satisfaction through better product or service quality. KM efforts can be directed to develop new product or service developments, and increased revenues. Originality/value – The research effort is an attempt to capture the mental model for successful KM implementation. The study is useful for KM professionals in developing and implementing KM systems and processes.

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