Exploring the Twin role of Ethics and Knowledge Management on Organizational Performance

Organizational performance and knowledge management are subjects which their successful implementations require a comprehensive view of all factors involved in them; one of these main factors is human force. Observance ethics by human force could help the promotion of organizational performance and better implementation of knowledge management. Accordingly the current paper intends to explore the role of ethics and knowledge management on organizational performance. Current paper is a correlation one in terms of relationship between research variables. The implement method of the research is survey. A conceptual model was designed based on literature review, and in order to analyze it, employees of an industrial organization were asked to answer to the questions of a valid questionnaire. Structural equation modeling was used for studying the relationships between research variables by LISREL software. Research results indicate that there is a positive and strong correlation between ethics and organizational performance. The relationship between ethics and knowledge management process is also positive and significant but no significant relationship is observed between knowledge management process and organizational performance. Therefore, it is clear that although ethics directly have a positive and strong impact on the performance but it is not able to influence the performance through mediated role of the knowledge management. In fact, considering the findings of the research, it can be stated that ethics as a key factor, along with other effective factors, play a key role in promotion of organizational performance as well as successfulness of knowledge management processes. In the light of the obtained results, consideration of ethics in organizations is recommended to be provided. Ethics should be emphasized and considered so that the personnel play further and more effective role in the improvement and promotion of their organization’s performance and also can actively participate in knowledge management processes.