The effect of knowledge management processes on organizational performance and a research in automotive industry

Today, knowledge has become the most important factor of economic life, thus organizations must manage their knowledge assets in a systematic way. Organizations need to manage knowledge efficiently in order to survive and to gain competitive advantage, because knowledge management plays a key role in adaptation to the environment that is rapidly changing and gaining competitive advantage. Organizations can improve their competitive power and performans by means of knowledge acquisition, knowledge transformation, knowledge application and knowledge protection processes. The purpose of this study is to evaluate the impact of knowledge management process on organizational performance. A comprehensive literature survey is done about this subject. First, knowledge and related concepts, infrastructure of knowledge management and knowledge management process are examined and the impact of this process on organizational performance are evaluated. The main population of this research consists of mid-level or senior managers working in the companies of automotive sub-industry that are registered to organized industry regions in Bursa city center. Research hypotheses are tested by multi regression analysis. According to the results; knowledge management processes are found to have partially positive effect on both financial and non-financial performance. Finally, in the light of these results, propositions are made for the companies of automotive sub-industry.