Exploring knowledge management to organizational performance outcomes in a transitional economy

The Eastern European Economies offer many major business opportunities but due to the transitional nature of their economies, these are highly complex and fraught with the socialist cultural disposition. There is a dearth of research into the nature of these opportunities/complexities, especially in regard to knowledge management and subsequent organizational outcomes. Our study of firms in Croatia suggests that knowledge management positively affects organizational outcomes Of firm innovation, product improvement and employee improvement. Moreover, our empirical research illustrates the importance of the management of knowledge and not just the presence of knowledge as our model results indicate insignificant results between employee knowledge-based capability and the organizational outcomes. (C) 2008 Elsevier Inc. All rights reserved.