Knowledge Management and Organizational Performance – Literature Review

The main purpose of this paper is to identify relevant literature in recent years on the topic of relation between knowledge management and organizational performance. A research model concerning relations between knowledge management processes (creation, storage, transfer and application) and organizational performance and relations between knowledge infrastructure elements (technology, organizational culture, and organizational structure) and organizational performance will be researched via literature review and proposed for further empirical research in doctoral work. Majority of reviewed studies revealed positive impact of knowledge management practices and / or knowledge infrastructure elements on organizational performance. Researchers defined organizational performance with various performance indicators from financial to strictly non-financial performance measures and also as combination of several different performance indicators. More than half reviewed scientific papers defined organizational performance with general or integral performance indicators consisting of several different performance indicators and by that avoiding more specific performance indicators such as financial indicators. As impact of knowledge management and organizational performance is confirmed in more and more studies every year, a study of relation between knowledge management and more specific performance indicators (financial and non-financial) as well as strength of relation, still remains challenge and subject of future researches.