Performance Implications of Knowledge Management: Mediating Roles of Dynamic Capability and Competitive Strategy

The purpose of this study is to examine the performance impact of knowledge management (KM) with IT support (KMIT) on firm performance. In addition it proposes to interpret the performance effects of KMIT in terms of dynamic capability and competitive strategy. A number of hypotheses are thus developed and were empirically tested using survey data obtained from business managers of Taiwan´s manufacturing firms. The statistical results indicated that both dynamic capability and competitive strategy had a positive influence on firm performance. Our study will have implications for academics and practitioners by providing a better understanding of the importance of knowledge management in explaining firm performance.