Does Knowledge Management Improve Performance?

9 August 2010 at 8:13 am 1 comment

| Peter Klein |

Yes, says Peter Cappelli:

The extensive literature on knowledge management spans several fields, but there are remarkably few studies that address the basic question as to whether knowledge management practices improve organizational performance. I examine that question using a national probability sample of establishments, clear measures of IT-driven knowledge management practices, and an experimental design that offers a unique approach for addressing concerns about endogeneity and omitted variables. The results indicate that the use of company intranets, data warehousing practices, performance support systems, and employee competency databases have significant and meaningful effects on a range of relevant business outcomes.

Cappelli relies on a national (US), establishment-level survey of knowledge-management practices to construct a panel in which (according to the practioner literature) none of the knowledge-management practices under consideration existed at the start of the sample period. Check it out.

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Entry filed under: - Klein -, Innovation, Management Theory, Recommended Reading, Strategic Management, Theory of the Firm.

WikiLeaks and Napster Korean Institutional Economics Conference

1 Comment Add your own

  • 1. Bill Kaplan  |  10 August 2010 at 7:11 am

    Since KM is about improving performance, when the focus is on the practical application and not just an academic discussion, and the real delivery is of KMconcepts, strategy, and implenting practices, there is measurable performaance that can be tracked to KM implementation–examples from my previous companywhere I was the CKO:

    1. Developed and embedded corporate-wide practices for the explicit management of organizational and client knowledge into the business and operational processes — Improved corporate ability to adapt to organizational and environmental change and effectively leverage critical workforce and leadership knowledge to deliver sustained performance to stakeholders and clients

    2. Corporate knowledge strategy that led to record year over year growth–13% organic revenue growth in 2008 over 2007 and a three year combined annual growth rate of over 20%.

    3. Improved the quality in customer solution delivery measured by high marks in regular, independent client quality surveys–90% of existing clients exercised options or contracted for new business in 2008.

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