The Impact of Knowledge Management on Organizational Performance

Abstract

In today’s business, knowledge is considered as a core asset in any organization, even it can be considered as important as technological capital. It is part of human abilities and thus human capital. Knowledge management (KM) is becoming a fad in an increasing way so many organizations are trying to apply it in order to enhance their organizational performance. In this paper, literatures were investigated critically in order to show the real influence of knowledge management and some of its practices on organizational performance. It has been founded that KM including knowledge process and infrastructure capabilities affect positively in a huge manner on all aspects of organizational performance directly or indirectly. In the same vein, there is a huge need to continuously train and educate the learning organizations’ CEOs about the importance of KM through group works and training programs.