An Empirical Investigation of Knowledge Management Strategy and Information Technology Strategy on Performance

Recently, a great number of theoretical frameworks have been proposed to develop the linkages between knowledge management (KM) and organizational strategy. While there has been much theorizing and case study in the area, validated research models integrating KM strategy and information technology (IT) strategy for empirical testing of these theories have been scarce. It is thought that the rapid progress of IT has been provided a good solution to support KM practices. Choosing the proper ITs to fit with different KM strategies is critical for organizations. Effective KM activities require employing KM strategies, as well as IT, appropriately. That is, as long as the KM strategy has been determined within an organization, the IT strategy must be followed. In this present research, we try to develop and examine a research model for explaining the relationships between KM strategy, IT strategy, and their effects on performance. Empirical data for hypotheses testing are collected from top-ranked companies in Taiwan; yielding 161 valid samples. The findings showed that KM strategy has a positive direct effect upon IT strategy; KM strategy and IT strategy have significant positive effects upon KM performance and IT performance respectively, and then collectively, have the impact upon business performance. Finally, from the empirical data analysis, meaningful findings and conclusions are derived, and suggestions for future research are proposed and discussed.