Knowledge is one of the most vital resources for surviving in the modern business
environment. In contemporary society, rapid changes are taking place in the global market,
customers’ requirements and technology. These advances are challenging managers to forecast
and respond in a dynamic environment. Such environment mandates continuous adaptation
and change by organizations. Knowledge sharing is critical to survive in such environments.
The capability to create and share knowledge enables organizations to innovate and is one of the most important skills for contemporary organizations (Gold et al., 2001; and Cho, 2011).
Knowledge is considered as valuable strategic asset that can provide proprietary competitive
advantages (Alavi and Leidner, 2001; Choi, 2002; and Roy et al., 2012). Managers need to
know how knowledge can influence their company’s competitive edge over others and hence
have been trying to use knowledge to sustain organizational performance (Hsieh, 2007).
Because of the importance of knowledge, organizations have invested heavily in Knowledge
Management (KM) (Wu, 2008). Every organization expects a positive outcome from such
investments. Although it is a practical thoughtfulness that there is a positive relationship
between KM and organizational performance, empirical research has been lacking in providing
the necessary support to that relationship (Lee and Choi, 2003; and Wu, 2008). It is uncertain
how KM has an effect on organizational performance. Hence, most companies are apprehensive
about starting their KM efforts (Choi, 2002). Previous studies on the relationship between
KM and organizational performance do exist; however the studies are ‘fragmented’ as they
have enlightened on many characteristics of KM and organizational performance but have
been deficient in providing a comprehensive framework. Most of the studies have examined
the relationship of KM strategy, enablers, processes or organizational performance separately
(Lee and Choi, 2003; and Lee et al., 2012). There is a need to examine all important KM
resources and connect them to firm performance (Lee et al. 2012). More empirical studies on
the holistic model of KM including KM strategy, KM enabler, KM process and organizational
performance are required. Such model can help understand underlying mechanisms
connecting KM to firm performance (Lee and Choi, 2003; and Wu, 2008).