The effect of knowledge management practices on organizational performance: A conceptual study

As organizations increasingly become aware of knowledge as a key strategic asset, they are being forced to revise their strategy on how to effectively utilize that asset to not only achieve competitive advantage but maintain it as well. Previous researches have provided many reasons for failure to implement knowledge management properly. No serious attempt has been made to integrate all the successful factors proposed by the knowledge management researchers in the past. This study focuses on the integrative effect of processes, intellectual capital, culture and strategy with cohesion of all stake holders on knowledge management which effects organizational performance. A sharing culture should be developed, to create knowledge sharing environment. The strategy should be developed with the active participation of the middle management and their input should be given importance. This study fills that gap and presents a conceptual frame work model of process, intellectual capital, culture and strategy (PICS) for successful implementation of knowledge management. The effective utilization of knowledge will not only create competitive advantage but maintains it as well, that would improve organizational performance.