Determinants of Knowledge Management and Organizational Performance: Mediation of Human Capital and Organizational Learning

Abstract

Background: It is widely recognized that human capital and knowledge are crucial for enterprises to achieve a competitive advantage. The literature suggests that the antecedents of knowledge management (KM) include technology, learning orientation, leadership, organizational culture, structure, strategy, and trust. The topic is relevant, but there is a lack of comprehensive analysis of the factors enhancing organizational performance (OP) across different countries and industries. Additionally, there is a research gap concerning the mediating role of human capital and organizational learning in the interplay between these antecedents, knowledge management, and organizational performance, particularly within the Serbian context.

Purpose: The Study examines the empirical evidence of the impact of main organizational factors on knowledge management implementation and its direct and indirect effect on organizational performance, through human capital and organizational learning within Serbian manufacturing and service firms.

Study design/methodology/approach: The analysis is based on a defined sample size of 637 anonymous participants employed in ten Serbian manufacturing and service companies, which have already implemented knowledge management principles. The Partial Least Squares Structural Equation Modeling (PLS-SEM) technique, which combines factor analysis and path analysis, was utilized to explore the relationships among constructs. After developing a conceptual model, confirmatory factor analysis was conducted to validate the factor structure of the observed variables.

Findings/conclusions: The results show a positive relation between key organizational factors and KM, and a direct linkage between KM and OP within Serbian firms. Furthermore, human capital and organizational learning were identified as mediating factors between KM and OP. This research contributes additional empirical support for the significance of enhancing OP through the development of human capital and valuable knowledge.

Limitations/future research: The research relies on subjective assessments, potentially introducing bias and measurement error. It also covers only ten manufacturing and service companies in Serbia. Future studies should address these limitations.