Does Knowledge Management Save the European Public Sector from Collapse?

Purpose - To explore the potential of knowledge management in improving public sector productivity. Design/methodology/approach - Through literature review and a case study this paper investigates the aspects of a municipality's activities, which seem potential for productivity improvement through the use of knowledge management. Originality/value - No prior studies were found explicitly examining the relationship between knowledge management activities and productivity in public sector context. This study identifies some potential areas for productivity improvement but also critically evaluates this potential. Practical implications - Cities around the world are faced with the continuous challenge to improve productivity. Based on this paper public sector managers can better assess the potential and limitations of knowledge management as a way to improve productivity.