The Impact of Knowledge Management Capabilities on Organizational Performance: A Survey of the Service Sector

Article English OPEN
Agbim, Kenneth Chukwujioke ; Oriarewo, Godday Orziemgbe ; Owutuamor, Zechariahs Benapugha (2013)
  • Publisher: Journal Of Business Management & Social Sciences Research
  • Journal: Journal Of Business Management & Social Sciences Research (issn: 2319-5614, eissn: 2319-5614)
  • Subject: Business Management | KM, KM capabilities, KM resources, Organizational performance, Service sector

The impact of Knowledge Management (KM) practices on organizational performance has been emphasized in the strategic management literature. However, the nature and forms of the enabling KM capabilities with respect to the service sector have not been sufficiently brought to the fore. Thus, owing to the advancements in service-oriented technology infrastructure, the unprecedented increase in the demand for knowledge workers, and the commonplaceness of service firms, this study investigated the impact of KM capabilities such as technical KM resource, structural KM resource, cultural KM resource and human KM resource on organizational performance. The study adopted a cross-sectional research method and purposive sampling technique. The generated data from directors/managers and other stakeholders of service firms were analysed using multiple regression. It was found that technical KM resource, structural KM resource, cultural KM resource and human KM resource impacts organizational performance positively and significantly. We conclude that technical and human KM capabilities will facilitate the conception and birth of new knowledge, while the structure and cultural KM capabilities will facilitate the implementation and multiplication of the new knowledge. Consequently, service firms can achieve enhanced organizational performance by: acquiring and using technologies that facilitates knowledge discovery, creation and sharing; adopting cultures that facilitates interaction, exploration and experimentation among employees; and encouraging employees to properly master their tasks and that of others, and communicate freely with employees of different areas of specialization
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