The impact of knowledge management on organisational performance

Knowledge management is a process that transforms individual knowledge into organisational knowledge. The aim of this paper is to show that through creating, accumulating, organising and utilising knowledge, organisations can enhance organisational performance. The impact of knowledge management practices on performance was empirically tested through structural equation modelling. The sample included 329 companies both in Slovenia and Croatia with more than 50 employees. The results show that knowledge management constructs (i.e. information technology, organisation and knowledge) positively affect organisational performance.

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