The Role of Marketing Performance in the Relationship between Knowledge Management and Financial Performance

Knowledge management (KM) is extremely valuable for competitive advantage. However, we know little about the influence mechanism of KM on performance. The main purpose of this study is to examine the inter-relationships between KM, marketing performance and financial performance. Building on extensive literature, a path model was developed and empirically tested using survey data from China´s firms. Data were analyzed with confirmatory factor analysis and structural equation modeling. Empirical results support the positive and significant link between KM and financial performance. Meanwhile, the findings also confirm that the indirect effect of KM on financial performance (with marketing performance playing a mediating role) is stronger. Finally, this study discusses managerial implications and highlights some directions for future research.