Performance Implications of the Knowledge Chain

Knowledge management (KM) initiatives are undertaken in order to improve organizational performance. The goal of such improvement is to make an organization more competitive in delivering value to its customers, employers, and stakeholders. However, without a plan that links KM activities to organizational performance, the time, effort, and money devoted to a KM initiative may yield little benefit. Thus, understanding this linkage is crucial to competitiveness of knowledge-based organizations. This paper uses the Knowledge Chain model as the theoretical base for an empirical study of the linkage between KM activities and approaches to competitiveness. It finds that every one of the nine knowledge chain activities can be performed in ways that improve organizational competitiveness in any of four ways: enhanced productivity, agility, innovation, and reputation. Aside from offering empirical support for the Knowledge Chain model, the primary finding of this research is that each knowledge chain activity deserves to be considered as a possible means for implementing each of these four approaches to improving organization performance.