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An evaluation of knowledge management system's components and its financial and non-financial implications

Author

Listed:
  • André Luhn

    (Pan-European University, Slovakia)

  • Sergey Aslanyan

    (Pan-European University, Slovakia)

  • Christian Leopoldseder

    (Pan-European University, Slovakia)

  • Pamela Priess

    (Pan-European University, Slovakia)

Abstract

Knowledge Management is an inclusive process of gathering knowledge, processing it and then utilising it in order to improve firm productivity and seek solutions to crucial problems. This paper is based on the assessment of structural framework of a Knowledge Management System (KMS) and how these components influence the financial and non-financial aspects of an organisation. The study mainly focuses on the evaluating the influence of KMS on the overall performance of SMEs in Austria. The current study investigates previous researches and theories to build a comprehensive understanding of the topic. It also conducts a quantitative analysis to evaluate the relationships between Knowledge Management Capabilities, Processes, and Firm Performance. To get first-hand information related to knowledge management practices, 126 managers and senior employees from 72 Austrian SMEs are surveyed. According to the results, KM capabilities have a significant positive relationship with KM processes. Moreover, KM processes in the Austrian SMEs have a significant positive influence on financial and non-financial performance. The study recommends increased focus on KM practices for improved overall performance.

Suggested Citation

  • André Luhn & Sergey Aslanyan & Christian Leopoldseder & Pamela Priess, 2017. "An evaluation of knowledge management system's components and its financial and non-financial implications," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(2), pages 315-329, December.
    • Handle: RePEc:ssi:jouesi:v:5:y:2017:i:2:p:315-329
    DOI: 10.9770/jesi.2017.5.2(11)
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    References listed on IDEAS

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    1. Udo Zander & Bruce Kogut, 1995. "Knowledge and the Speed of the Transfer and Imitation of Organizational Capabilities: An Empirical Test," Organization Science, INFORMS, vol. 6(1), pages 76-92, February.
    2. King, William R. & Marks, Peter Jr., 2008. "Motivating knowledge sharing through a knowledge management system," Omega, Elsevier, vol. 36(1), pages 131-146, February.
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    Cited by:

    1. Dana Benešová & Viera Kubičková & Anna Michálková & Monika Krošláková, 2018. "Innovation activities of gazelles in business services as a factor of sustainable growth in the Slovak Republic," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(3), pages 452-466, March.
    2. Dana Benešová & Viera Kubičková & Anna Michálková & Monika Krošláková, 2018. "Innovation activities of gazelles in business services as a factor of sustainable growth in the Slovak Republic," Post-Print hal-01773577, HAL.
    3. Jurgita Raudeliūnienė & Manuela Tvaronavičienė & Milda Blažytė, 2020. "Knowledge Management Practice in General Education Schools as a Tool for Sustainable Development," Sustainability, MDPI, vol. 12(10), pages 1-11, May.

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    More about this item

    Keywords

    knowledge management systems; knowledge management capabilities; knowledge management processes; financial performance; non-financial performance; T-shaped skills; learning organisation; correlation; regression analysis;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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