Knowledge management and organisational performance: a literature review

Although knowledge management is considered as a very recent phenomenon, research in to knowledge and the management of the knowledge within the business context has grown dramatically over the last few years, in a number of different directions. As a result, a great deal about, what knowledge is and the ways in which knowledge is managed, have been addressed by many authors. However, despite the growing body of theory, there are relatively few knowledge management texts that make an explicit connection between knowledge and performance. Knowledge is not always utilised and that utilised knowledge does not always result in improved performance. Thereby measurement of performance is of utmost importance for an organisation to ensure the successful implementation of knowledge management exercise. This paper is aimed at reviewing literature on both knowledge management and organisational performance. Based on the review it was underlined knowledge management as a strategy which leads to performances. The paper highlighted the extreme importance of looking into the performance measures which can be deployed in knowledge organisations and recommends further research to be carried out on this regard

The Relationship Between Employee Perceptions of the Employment Game and Their Perceptions of Cooperative Knowledge Behavior in High Tech Firms

The relationship between knowledge sharing and organizational performance for high technology start-up companies is not well understood. Using game theory and the concept of competitive advantage through human resource management, I examine employee perceptions of the employment game relating to cooperative knowledge behavior and firm performance as an entry point into researching organizational knowledge utilization. I draw upon classical game theory to develop four measures of perceptions critical to game playing and apply these to organizational situations via a survey instrument. I propose that perceptions of the employment game held by organization members are determinants of cooperative knowledge sharing and subsequently firm performance. I analyze survey data gathered from high-tech workers using both regression and path analysis techniques. The results from this study offer new insights into methods for measuring both the connections between knowledge work and firm performance and the perceptions critical for fostering collaborative knowledge work in high tech firms. Results of the study show a significant relationship between the game theory construct of reciprocity, knowledge building behavior and firm performance. The mediation model was weakly supported but shows potential usefulness for further research in the field of strategic human resource management

The investigation of knowledge leadership in innovation performance of companies

Knowledge leadership is essential for organizations focused on intensive technology in order to improvement of innovation performance through the effective development and implementation of performance of knowledge management. Knowledge leadership as a driving force for knowledge management measures that are indirectly linked with innovation performance. In fact, the more leadership is broader, more developed knowledge management practices, which in turn affects the performance of innovation. According to to the increasing demand for knowledge and activities to integrate knowledge, innovation can promote exchange and interaction between people, thus leading to joint activities of knowledge management and innovation performance

Distorted Performance Measures and Dynamic Incentives

Incentive contracts must typically be based on performance measures that do not exactly match agents’ true contribution to principals’ objectives. Such misalignment may impose difficulties for effective incentive design. We analyze to what extent implicit dynamic incentives such as career concerns and ratchet effects alleviate or aggravate these problems. Our analysis demonstrates that the interplay between distorted performance measures and implicit incentives implies that career and ratchet effects have real effects, that stronger ratchet effects or more distortion may increase optimal monetary incentives, and that bureaucratic promotion rules may be optimal.Search; Learning; Information and Knowledge; Communication; Belief; Compensation Packages; Payment Methods; Labor Management.

Strategic Renewal and its Effect on Small Firm Performance

In this paper, we investigate the relationship between strategic renewal and the performance of smaller firms (less than 100 employees). We use a panel of micro data on about 1000 Dutch firms. The dataset contains information on aspects of strategic renewal, including process innovation and knowledge management. In our regression analyses we explain the variation in firm performance and we explicitly control for reversed causality, business cycle effects, sector effects, and firm age. We find that market research, an active external network for knowledge acquisition and strategic efforts into the improvement of internal processes are positively related to turnover growth. Furthermore, codification of knowledge, cooperation with partner firms and the provision of training to employees directly relates to employment growth. The results emphasize the importance of both knowledge absorption and knowledge creation to the success of innovative efforts in small firms. We find that the impact of the various measures varies with firm size. One further notable finding is that the ownership of patents negatively impacts small firm performance, particularly for the smallest firms in our sample.

Evaluating Knowledge Management and the Learning Organization: An Information/Knowledge Value Chain Approach

Based on the common elements in the definitions and operationalizations of knowledge management and the learning organization, a triad of objectives for both knowledge management and the learning organizations is identified: 1) improved information and knowledge that enables (2) organizational behaviors and decisions that have greater impacts, and (3) improved organizational performance. These objectives are used to guide the development of an information/knowledge value chain model that can form the basis for a framework for evaluating progress in knowledge management programs and in the development of a learning organization. Four classes of evaluation are identified for this purpose (cognitive and post-cognitive process, behavioral, learning process, and organizational impact) A number of operational measures are suggested for each class. The measures that are appropriate in a given circumstance may be selected from, or suggested by, that list

The Mediating Role of Operational and Environmental Performance in the Relationship between Green Supply Chain Management and Financial Performance

The study is carried out with an objective to explore the impact of green supply chain management on different performance measures such as environmental performance, operational performance and financial performance. In addition to that, the mediating role of operational performance and the environmental performance in the relationship between green supply chain management and the financial performance is also examined. The study has broached a new perspective, that is external and internal GSCM practices are essential in the SC strategies, as these practices facilitate firms in enhancing market share and profits only when jointly implemented, by improving ecological efficiency and minimizing environmental risks. Therefore, the objective of this paper is to examine the interrelationships between GSCM approaches, performance, and environmental drivers. SEM-PLS is used to achieve the research objective of the current study. The study which is on Indonesian is in author knowledge is among few pioneering studies exploring the interaction of green supply chain management as determinant of firm performance measures. This study will be helpful for policymakers and researchers in examining the link between supply chain management on different performance measures such as environmental performance, operational performance and financial performance for Indonesian settings

Variation in Experience and Team Familiarity: Addressing the Knowledge Acquisition-Application Problem

Prior work in organizational learning has failed to find a consistent effect of variation in experience on performance. While some studies find a positive relationship between these two variables, others find no effect or even a negative relationship. In this paper, we suggest that the differences in prior findings may be due to the failure to separate the processes of knowledge acquisition and knowledge application. While variation in experience may permit the acquisition of valuable knowledge, additional mechanisms may be necessary to enable the subsequent application of that knowledge in a team setting. We hypothesize that team familiarity - prior experience working with team members - may be such a mechanism. We use detailed project- and individual-level data from an Indian software services firm to examine the effects of team familiarity and variation in market experience on multiple measures of performance for over 1,100 software development projects Consistent with prior work, we find mixed results for the effect of variation in experience on performance. We do, however, see evidence of a moderating effect of team familiarity on the relationship between these two variables. Our paper identifies one mechanism for uniting knowledge acquisition and knowledge application and provides insight into how the management of experience accumulation affects the development of organizational capabilities.Experience, Knowledge, Software, Team Familiarity, Variation

Research on computer aided testing of pilot response to critical in-flight events

Experiments on pilot decision making are described. The development of models of pilot decision making in critical in flight events (CIFE) are emphasized. The following tests are reported on the development of: (1) a frame system representation describing how pilots use their knowledge in a fault diagnosis task; (2) assessment of script norms, distance measures, and Markov models developed from computer aided testing (CAT) data; and (3) performance ranking of subject data. It is demonstrated that interactive computer aided testing either by touch CRT's or personal computers is a useful research and training device for measuring pilot information management in diagnosing system failures in simulated flight situations. Performance is dictated by knowledge of aircraft sybsystems, initial pilot structuring of the failure symptoms and efficient testing of plausible causal hypotheses

Determinants Of Integrated Performance Measurement Systems Usage: An Empirical Study

Performance management literature has been advocating the balanced use of non-financial measures alongside traditional financial measures, possibly within integrated performance measurement systems, since the early 1990’s. The purpose of this paper is to explore how contextual factors (such as company size, industry, and market position), business objectives and knowledge about contemporary management tools influence the decision to implement Balanced Scorecard or similar integrated performance management systems. We tested our research propositions regarding the influence of these factors by using survey data and a logistic regression model. The study is based on a survey conducted in 2008 on a sample of 323 Slovenian companies. The sample consists of large, medium, and small firms from different industrial sectors, including manufacturing and service. Overall, our results confirm contextual factors, such as company size and industry, and knowledge about management tools as most important determinants of integrated performance measurement systems usage. Although market position and business objectives also receive some support for their influence, the results are generally weaker and more ambiguous