Does KM Really Matter? Linking KM Practices, Competitiveness and Economic Performance

Purpose - While there nowadays are masses of literature chanting the mantra of knowledge management (KM), there is a worrying shortage of empirical studies demonstrating an actual connection between KM activities and organizational outcomes. To bridge this gap, we examine the link between KM practices, firm competitiveness and economic performance. Design/methodology/approach - We propose a framework of KM practices consisting of HRM and ICT. These both are hypothesised to impact competitiveness and economic performance of the firm. Hypotheses are then tested with structural equation modelling by using a survey dataset of 234 companies. Originality/value - Our paper contributes to the literature on knowledge-based organizing by empirically analyzing the performance impact of various areas of KM. It thereby tests the proposition put forth in many previous theoretical and case-based studies that KM promotes high organizational performance. The paper extends understanding on the knowledge-based view of the firm by examining how KM is related with organizational outcomes. Practical implications - The paper contributes to managerial practice by pointing out the importance of utilizing a combination of both social and technical means for KM and illustrating that they do matter for company bottom line.