The Impact of Knowledge Management on anagement Organizational Performance: A balanced Scorecard pproachpproach

This study aims to present a holistic approach regarding evaluation of knowledge management (KM) practices on organizational performance of the subsidiary firms of Iran National Petrochemical Company (INPC). In this study balanced scorecard approach (BSC) has been employed and the research hypotheses were raised based on the four perspectives of this approach, namely customer, growth and learning, internal processes, and financial. By literature, critical success factors (CSFs) of KM and organizational performance along with their items were identified in the framework of BSC’s perspectives. Based on these constructs and their items an instrument was designed and distributed among managers and employees of the surveyed organizations. Reliability of the instrument was calculated by Chronbach’s alpha for the two sections of the instrument i.e. KM practices and organizational performance. Also, using factor analysis the construct validity of the questionnaire was approved. Finally, based on the hypotheses of the study and using structural equation modeling the impacts of KM practices on organizational performance were investigated. The results revealed that KM practices positively and significantly (though weak) impact overall organizational performance. This impact is significant only regarding growth and learning dimension and on the other dimensions is insignificant. Also, as customer and financial constructs were loaded on one factor based on the entity of their indicators we considered these two constructs as stakeholders construct.