The Influence of Knowledge Management on Financial and Non-Financial Performance

Asil Oztekin, Dursun Delen (), Halil Zaim, Ali Turkyilmaz and Selim Zaim
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Asil Oztekin: Department of Operations and Information Systems, University of Massachusetts Lowell, Lowell, Massachusetts 01854, USA
Dursun Delen: Department of Management Science and Information Systems, Oklahoma State University, Tulsa, Oklahoma 74106, USA
Halil Zaim: Department of Management, Fatih University, Buyukcekmece 34500 Istanbul, Turkey
Ali Turkyilmaz: Department of Industrial Engineering, Fatih University, Buyukcekmece 34500 Istanbul, Turkey
Selim Zaim: Department of Industrial Engineering, Istanbul Technical University, 34469 Istanbul, Turkey

Journal of Information & Knowledge Management (JIKM), 2015, vol. 14, issue 02, 1-14

Abstract: The primary aim of this study is to determine critical factors of knowledge management (KM) and to measure their effect on organisational performance. The design of the study is based on a survey composed of questions related to the KM processes. Following refinement and retesting the initial questionnaire development, the final questionnaire was subjected to 83 managers from various ranks based on personal interviews. The variance-based structural equation modelling reveals that there is a strong positive relationship between KM implementation and non-financial performance, while there is no significant influence of KM implementation on financial performance. With only a mediating effect of non-financial performance, the KM implementation has a strong positive impact on financial performance. This study presents uniqueness in that it is the first and foremost one that analyses effects of KM practices on financial performance both directly and indirectly via the mediating effect of non-financial performance factors.

Keywords: Knowledge management; financial performance; non-financial performance; structural equation modeling; service industry (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S0219649215500136

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