A Statistical Model Assessing Knowledge Management in Manufacturing Industry: Does Environmental Analysis Matter?

Currently, the evaluation of knowledge management has been widely explored by both academicians and practitioners. This paper aims to examine the effectiveness of knowledge management practices within manufacturing organizations, with a particular emphasis on environmental analysis. An assessment model was firstly introduced consisting of the basic knowledge management activities (KMA), Environmental Analysis (EA) and Organizational performance (OP). Data was collected from 138 Chinese Manufacturers by survey questionnaires. Cronbach's α and factor analysis were performed to test reliability and validity. Hierarchical multiple regressions results show that both EA and KMA positively contribute to OP. However, the internal analysis comparing with the external analysis plays more significantly role on the KMA-OP relationship. It indicates firms to better analyze environment especially the internal aspects to enhance their KM effectiveness.