The Impact of Knowledge Management on Organizational Performance: A Balanced Scorecard Approach

Subject Areas : Industrial Management

Changiz Valmohammadi ¹ , Mohsen Ahmadi ² , Mohsen Seyed Aliakbar ³

1 - Assistant Professor, Islamic Azad University, South Tehran Branch, Faculty of Management and Accounting
2 - Assistant Professor, Islamic Azad University, Damavand Branch, Faculty of Industrial Engineering
3 - Assistant Professor, Islamic Azad University, South Tehran Branch, Faculty of Industrial Engineering

Received: 2018-01-08 Accepted : 2018-01-08 Published : 2013-08-23

Keywords:

Abstract :

This study aims to present a holistic approach regarding an evaluation of knowledge management (KM) practices on organizational performance of the subsidiary firms of Iran National Petrochemical Company (INPC). In this study balanced scorecard approach (BSC) has been employed and the research hypotheses were raised based on the four perspectives of this approach, namely customer, growth and learning, internal processes, and financial. By literature, critical success factors (CSFs) of KM and organizational performance along with their items were identified in the framework of BSC’s perspectives. Based on these constructs and their items an instrument was designed and distributed among managers and employees of the surveyed organizations. Reliability of the instrument was calculated by Chronbach’s alpha for the two sections of the instrument i.e. KM practices and organizational performance. Also, using factor analysis the construct validity of the questionnaire was approved. Finally, based on the hypotheses of the study and using structural equation modeling the impacts of KM practices on organizational performance were investigated. The results revealed that KM practices positively and significantly (though weak) impact overall organizational performance.This impact is significant only regarding growth and learning dimension and on the other dimensions is insignificant. Also, as the customer and financial constructs were loaded on one factor based on the entity of their indicators we considered these two constructs as stakeholders construct.  

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