Abstract
Many business consultants and strategy theorists consider Knowledge Management (KM) critical to the success of an organization. While a few empirical studies have investigated the relationships among KM capability and various measures of performance, it is still not known what KM capabilities actually affect organization performance. Also, some research has examined contingency factors related to KM and performance, but industry type has not been examined as a possible moderator. This study explored two major questions: (1) Do KM capabilities impact perceived organization performance? and (2) Do KM capabilities have different effects in different industries? The results indicate that activities for knowledge documentation, acquisition and creation positively impact business performance and that the type of industry moderates the relationships. From a resource-based and knowledge-based view of the firm, the results indicate that in some circumstances KM creates a capability that results in improved performance. In general, the results help understand the complex role of knowledge management capabilities in firms.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Alavi, M., Leidner, D.E.: Review: Knowledge Management and Knowledge Management Systems: Conceptual Foundations and Research Issues. MIS Quarterly. 25,1 (March 2001) 107–136
Alwin, D.E., Hauser, R.M.: Decomposition of Effects in Path Analysis. American Sociological Review. 40 (1975) 37–47
Ancori, B., Bureth, A., Cohendet, P.: The Economics of Knowledge: the Debate about Codification and Tacit Knowledge. Industrial and Corporate Change. 9,2 (June 2000) 289–313
Andrews, K.R: The Concept of Corporate Strategy. Homewood, IL: Dow Jones Irwin, 1971
Armstrong, J.S. and Overton, T.S. Estimating nonresponse bias in mail surveys. Journal of Marketing Research. 16 (August 1977) 396–402
Balasubramanian, P., Nochur, K., Henderson, J.C., Kwan, M.M.: Managing Process Knowledge for Decision Support. Decision Support System. 27,1–2 (November 1999) 145–162
Barney, J. B. Firm resources and sustained competitive advantage. Journal of Management, 17,1 (1991), 99–120
Becerra-Fernandez, I., Sabherwal, R.: Organizational Knowledge Management: a Contingency Perspective. Journal of Management Information Systems. 18,1 (Summer 2001) 23–55
Bierly, P., Chakrabarti, A.: Generic Knowledge Strategies in the U.S. Pharmaceutical Industry. Strategic Management Journal. 17,10 (Winter 1996) 123–135
Bloodgood, J.M., Salisbury, W.D.: Understanding the Influence of Organizational Change Strategies on Information Technology and Knowledge Management Strategies. Decision Support Systems. 31,1 (May 2001) 55–69
Brown, J.S., Duguid, P.: Knowledge and Organization: a Social Practice Perspective. Organization Science. 12,2 (2001) 198–213
Cardinal, L.B., Alessandri, T.M., Turner, S.F.: Knowledge Codifiability, Resources, and Science-based Innovation. Journal of Knowledge Management. 5,2 (2001) 195–204
Carlucci, D., Marr, B., Schiuma, G.: The Knowledge Value Chain: How Intellectual Capital Impacts on Business Performance. International Journal of Technology Management. 27,6/7 (2004) 575–590
Choi, B., Lee. H.: An Empirical Investigation of KM Styles and their Effect on Corporate Performance. Information and Management. 40,5 (2003) 403–417
Chuang, S. A.: Resource-based Perspective on Knowledge Management Capability and Competitive Advantage: an Empirical Investigation, Expert Systems with Applications. 27 (2004) 459–465
Clemons, E.K.: Corporate Strategies for Information Technology: a Resource-based Approach. Computer. 24,11 (November 1991) 23–32
Collis, D.J., Montgomery, C.A.: Competing on Resources: Strategy in the 1990’s. Harvard Business Review, (July–August 1995) 118–128
Cowan, R., Foray, D.: The Economics of Knowledge Codification and Diffusion. Industrial and Corporate Change. 6,3 (1997) 595–622
Cowan, R., David, P.A., Dominique, F.: The Explicit Economics of Knowledge Codification and Tacitness. Industrial and Corporate Change. 9,2 (June 2000) 211–253
Davenport, T.H., Prusak, L. Working Knowledge: How Organizations Manage What They Know. Boston: Harvard Business School Press, (1998)
Davenport, T.H., De Long, D.W., Beers, M.C.: Successful Knowledge Management Projects. Sloan Management Review. 39,2 (Winter 1998) 43–58
David, P. A., Foray, D.: Information Distribution and the Growth of Economically Valuable Knowledge: a Rationale for Technological Infrastructure Policies. In Technological Infrastructure Policy: An International Perspective, eds. Teubal M., M. (1996)
De Long, D.W., Fahey, L.: Diagnosing Cultural Barriers to Knowledge management, The Academy of Management Executive, 14,4 (November 2000) 113–127
Demarest, M.: Understanding Knowledge Management. Long Range Planning. 30,3 (1997), 374–384
Drucker, P.F. The coming of the new organization, Harvard Business Review, (January–Fevruary 1988), 45–53
Drucker, P.F. Management challenges for the 21th Century. New York: Harper Business, (1999)
Duffy, J.: Knowledge management: to be or not to be? Information Management Journal. 34,1 (2000) 64–7
Emin, C.: Knowledge Management as a Competitive Asset: a Review. Marketing Intelligence & Planning. 18,4 (2000) 166–174
Fenstermacher, K.D.: Process-Aware Knowledge Retrieval Proceedings of the 35th Hawaii International Conference on System Sciences. Big Island, Hawaii USA, (2002) 209–265.
Foray D., Steinmueller, W.E.: The Economics of Knowledge Reproduction by Inscription. Industrial and Corporate Change. (2002)
Francisco J.F., Guadamillas, F.: A Case Study on the Implementation of a Knowledge Management Strategy. Oriented to Innovation Knowledge and Process Management. 9,3 (July/September 2002) 162–171
Gold, A.H., Malhotra, A., Segars, A.H.: Knowledge Management: an Organizational Capabilities Perspective. Journal of Management Information Systems, 18,1 (Summer 2001) 185–214
Grant, R. M.: Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration. Organization Science. 7,4 (1996a) 375–387
Grant, R.M.: Toward a Knowledge-based Theory of the Firm. Strategic Management Journal. 17 (1996b) 109–122
Grover, V., Davenport, T.H.: General Perspective on Knowledge Management: Fostering a Research Agenda. Journal of Management Information Systems. 18,1 (Summer 2001) 5–21
Hansen, M.T., Nohria, N., Tierney, T.: What’s your Strategy for Managing Knowledge? Harvard Business Review. 77,2 (March/April 1999) 106–116
Harel, G.H., Tzafrir, S.S.: The Effect of Human Resource Practices on the Perceptions of Organizational and Market Performance of the Firm. Human Resource Management. 38,3 (1999)185–199
Hendriks, P.H.J., Vriens, D.J.: Knowledge-based Systems and Knowledge Management: Friends or Foes? Information & Management. 35,2 (February 1999) 113–125
Hofer, C., Schendel, D.: Strategy Formulation: Analytical Concepts. St. Paul, MN: West Publishing, Inc., (1978)
Holsapple, C.W., Singh, M.: Toward a Unified View of Electronic Commerce, Electronic Business and Collaborative Commerce: a Knowledge Management Approach. Knowledge & Process Management Journal. 7,3 (2000) 151–164
Holsapple, C.W., Singh, M.: The Knowledge Chain Model: Activities for Competitiveness. Expert Systems with Applications 20, (2001) 77–98
Holtham, C., Courtney, N.: Developing Managerial Competencies In Applied Knowledge Management: A Study Of Theory And Practice, Proceedings of AIS Americas Conference, Baltimore. (1998)
Huber, G.P., Power, D.J.: Retrospective Reports of Strategic-level Managers: Guidelines for Increasing their Accuracy. Strategic Management Journal. 6,2 (1985) 171–180
Jennex, M.E., Olfman, L.: A Model of Knowledge Management Success. International Journal of Knowledge Management. 2,3 (2006) 51–68
Kakabadse, N., Kakabadse, A., Kouzmin, A.: Reviewing the Knowledge Management Literature: Towards Taxonomy. Journal of Knowledge Management. 7,4, (2003) 75–91
Kankanhalli, K., Tanudidjafi, F., Sutanto, J., Tan, B.C.Y.: The Role of IT in Successful Knowledge Management Initiatives. Communications of the ACM. 46,9 (2003) 69–73
Kaplan, R., Norton, D.: Having Trouble with your Strategy? Then map it. Harvard Business Review. 78,5 (September/October 2000) 167–176
Kennedy, D. Academic Duty, Cambridge: Harvard University Press, (1997)
Kogut, B., Zander, U.: What Do Firms Do? Coordination, Identity, and Learning, Organization Science. 7,5 (1996). 502–518
Kusunoki, K., Nonaka, I., Nagata, A.: Organizational Capabilities in Product Development of Japanese Firms: a Conceptual Framework and Empirical Findings. Organizational Science. 9,6 (1998) 699–718
Kwan, M.M., Balasubramanian, P.: KnowledgeScope: Managing knowledge in context. Decision Support System, 35. (2003). 467–486
Ladd, A., Ward, M.A.: An Investigation of Environmental Factors Influencing Knowledge Transfer. Journal of Knowledge Management Practice. (August 2002)
Laszlo, K.C., Laszlo, A.: Evolving Knowledge for Development: the Role of Knowledge Management in a Changing World. Journal of Knowledge Management. 6,4 (2002)
Laurie J.: Harnessing the Power of Intellectual Capital. Training & Development. 51,12 (1997) 25–30
Lee, H., Choi, B. Knowledge Management Enablers, Processes, and Organizational Performance: an Integrative View and Empirical Examination. Journal of Management Information Systems. 20,1 (Summer 2003) 179–228
Liu, P.L., Chen, W.C., Tsai, C.H.: An Empirical Study on the Correlation between Knowledge Management Capability and Competitiveness in Taiwan’s Industries. Technovation. 24 (2004) 971–977
Marshall, L.: Facilitating Knowledge Management and Knowledge Sharing: New Opportunities for Information Professionals. Online, 21,5 (1997) 92–95
Mata, F.J., William, L.F., Barney, J.B.: Information Technology and Sustained Competitive Advantage: a Resource-based Analysis. MIS Quarterly. 19,4 (December 1995) 487
Meso, P., Smith, R.: A Resource-based View of Organizational Knowledge Management systems. Journal of Knowledge Management. 4,3 (March 2000) 204–216
Nissen, M.E.: Knowledge-based Knowledge Management in the Reengineering Domain. Decision support systems,.special issue on knowledge management. Decision Support Systems. 27,1–2 (November, 1999) 47–65
Nonaka, I.: Knowledge-Creating Company. Harvard Business Review. 69,6 (1991) 96–104
Nonaka, I., Takeuchi, H. The Knowledge-Creation Company: How Japanese Companies Create the Dynamics of Innovation. New York: Oxford University Press, (1995)
O’Dell, C., Grayson, C. J.: If only we Knew what we Know: Identification and Transfer of Internal Best Practices. California Management Review. 40,3 (1998) 154–174
Paradice, D. B., Courtney, J. F.: Organizational Knowledge Management. Information Resources Management Journal. 2,3 (1989) 1–13
Pelham, A.M.: Market Orientation and Other Potential Influences on Performance in Small and Medium-sized Manufacturing Firms. Journal of Small Business Management. 38,1 (January 2000) 48–67
Peteraf, M. A.: The Cornerstones of Competitive Advantage: A Resource-based View. Strategic Management Journal. 14 (March 1993) 179–191
Porter, M.E. Competitive Strategy, New York: Free Press, (1980)
Porter, M.E., Millar, V.: How Information Gives you Competitive Advantage. Harvard Business Review. 63,4 (1985) 149–160
Prahalad, C.K., Hamel, G.: The Core Competence of the Corporation. Harvard Business Review. 68 (May–June 1990) 79–91
Prusak, L.: Where did Knowledge Management come from? IBM Systems Journal. 40,4 (2001) 1002–1007
Robinson, J.P., Shaver, P.R., Wrightsman, L.S.: Criteria for Scale Selection and Evaluation, in Measures of Personality and Social Psychological Attitudes, J.P., Robinson, P.R. Shanver, and L.S. Wrightsman (eds.) San Diego, Calif.: Academic Press, (1991)
Rubenstein-Montano, B., Liebowitz, J., Buchwalter, J., McCaw, D.: A Systems Thinking Tramework for Knowledge Management. Decisions Support System. 31,1 (2001) 5–16
Sher, P.J., Lee, V.C.: Information Technology as a Facilitator for Enhancing Dynamic Capabilities through Knowledge Management. Information & management. 41 (2004) 933–945
Shin, M., Holden, T., Schmidt, R.A.: From Knowledge Theory to Management Practice: Towards an Integrated Approach, Information Support for the Sense-making Activity of Managers. Decision Support Systems. 31,1 (2001) 55–69
Simonin, B.: The Importance of Collaborative Know-how: an Empirical Test of the Learning Organization. Academy of Management Journal. 40,5 (1997) 509–533
Smart, P.A., Maull, R.S., Radnor, Z.J., Housel, T.J.: An Approach for Identifying Value in Business Processes. Journal of Knowledge Management. 7,4 (April 2003) 49–61
Spender, J.C., Grant, R.: Knowledge and the Firm: Overview. Strategic Management Journal. 17, (1996) 5–10
Szulanski, G.: Exploring Internal Stickness: Impediments to the Transfer of best Practice within the Firm. Strategic Management Journal. 17, (Winter 1996) 27–43
Tanriverdi, H.: Information Technology Relatedness, Knowledge Management Capability, and Performance of Multibusiness Firms. MIS Quarterly. 29,2 (June 2005) 311–334
Teece, D.J.: Capturing Value from Knowledge Assets: the New Economy, Markets for Know-how, and Intangible Assets. California Management Review. 40,3 (1998) 55–77
Teece D.J., Pisano, G., Shuen, A.: Dynamic Capabilities and Strategic Management. In The Nature and Dynamics of Organizational Capabilities, eds. Dosi G., R. R. Nelson and S. G. Winter, Oxford University Press, (2000)
Wasko, M.M., Faraj, S.: Why should I Share? Examining Social Capital and Knowledge Contribution in Electronic Networks of Practice. MIS Quarterly. 29,1 (2005) 35–47
Wilson, T.D.: The Nonsense of Knowledge Management. Information Research. 8,1 (2002), paper no. 144. Available at http://InformationR.net/ir/8-l/paper144.html.
Zander, D., Kogut, B.: Knowledge and the Speed of the Transfer and Imitation of Organizational Capabilities: an Empirical test. Organization Science. 6,1 (1995) 76–92
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2007 Springer Science+Business Media, LLC
About this chapter
Cite this chapter
Liang, TP., OuYang, YC., Power, D.J. (2007). Effects of Knowledge Management Capabilities on Perceived Performance: An Empirical Examination. In: Kulkarni, U., Power, D.J., Sharda, R. (eds) Decision Support for Global Enterprises. Annals of Information Systems, vol 2. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-48137-1_8
Download citation
DOI: https://doi.org/10.1007/978-0-387-48137-1_8
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-387-48136-4
Online ISBN: 978-0-387-48137-1
eBook Packages: Computer ScienceComputer Science (R0)