Knowledge Management and Its Impact on Organizational Performance in the Private Sector in India

Himanshu Joshi, Deepak Chawla

Abstract

The study proposes a comprehensive model comprising of various relationships between antecedents to effective Knowledge Management (KM) and organizational performance. A review of literature besides a focus group discussion and a personal interview were used to design an instrument and propose seven hypotheses. Data was collected from 127 managers working in private sector organizations in India. To test the hypotheses, Structural Equation Modelling (SEM) analysis through Partial Least Squares (PLS) was used. The results indicate that although all the hypotheses had the desired positive sign, five out of them were significant. This paper presents empirical evidence of the role of KM planning and design (KMPD), KM implementation and evaluation (KMIE), Technology in KM (TKM), Culture in KM (CKM), Leadership in KM (LKM) and Structure in KM (SKM) in enhancing organizational performance. Further, improvements in organizational performance leads to improvements in financial performance.

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