How knowledge management processes can create and capture value for firms?

Knowledge has become the main competitive tool for firms. Just as knowledge is considered as the most important strategic resource, knowledge management (KM) is considered to be critical to a firm's success. Several attempts have been undertaken to identify and define the different KM processes. From the literature review, four key dimensions stand out as affecting KM processes: knowledge creation, knowledge transfer, knowledge storage/retrieval, and knowledge application. The aim of this paper is to contribute to the KM and value literature by determining the importance of the different processes of KM for increasing value creation and value capture in firms. The context for the research hypotheses is the Spanish banking industry in 2010. The results support a positive relationship between KM and value creation, and between value creation and value capture.