The Influence Of Knowledge Management On Market-Related Performance Through Business Process Effectiveness: An Empirical Investigation Of Hospitals And Financial Firms

Knowledge-based resources are critical in service sectors for facing the challenges of dynamic markets and helping organizations manage changes in consumer preference. Knowledge application is needed to improve the business process in order to attain superior market-related performance because there is the unperfected imitation coming from causal ambiguity. However, there is a lack of empirical study in examining the effect of KM and the effect of the business process within the scope of service sectors. This study examines how KM infrastructure supports and KM capabilities influence market-related performance through business processes effectiveness. Data collections of two studies are from 166 hospitals and 106 financial firms. The findings indicate a positive relationship between KM infrastructure and KM capability, and that they have a positive influence on market-related performance through business process effectiveness. For improving this process, the effect of KM infrastructure is greater than the effect of KM capabilities in hospitals. But the effect of KM capabilities is greater than the effect of KM infrastructure in financial firms. The implications of these findings for research and practices in hospitals and financial firms are also discussed.