The Impact of Knowledge Management on Organizational Performance: A Structural Equation Modeling Study

This study attempts to investigate the role of knowledge management (KM) in commercial companies.  To  this  end,  the  literature  was  reviewed  and  relevant  components  were  extracted  to  conceptualize  KM and organizational performance, (OP) and the relationship between KM and OP was presented in a theoretical  framework.  Secondly,  to  assess  the  proposed  model,  a  questionnaire  was  given  to  200  participants  in  five  commercial  companies,  chosen  through  multi-stage  stratified  sampling.  The  data  were  analyzed  using  structural  equation  modeling  (SEM)  and  Lisrel  8.8.  The  results  revealed  that  the  model enjoyed an acceptable degree of fit. The obtained coefficient (0.41) showed a direct impact of KM indices on OP, indicating the significant and positive relationship between KM and OP dimensions such as financial performance, quality of goods and services, staff members’ performance, innovation, and customers’ level of satisfaction.