Factors Affecting Knowledge Management and Its Effect on Organizational Performance: Mediating the Role of Human Capital

Abstract

This study aims to investigate and identify the factors affecting the empowerment and implementation of knowledge management in organizations as well as the impact of knowledge management on organizational performance. This study also examines the mediating role of human capital in the relationship between knowledge management and performance of Kabul Steel Plant, which is the largest steel plant in Afghanistan. The research model was developed through the literature review. The initial data were collected through a questionnaire containing 48 questions. Participants were 108 managers and administrative staff of the company. The collected data were analyzed by using the SPSS and SmartPLS software. The hypotheses regarding the impact of strategy and technology on knowledge management were rejected by using correlation analysis and t-test statistic. Finally, the findings showed the positive effects of variables of structure, culture, leadership, and trust on knowledge management in an organization. Also, knowledge management influences the organizational performance, both directly and through the mediating variable of human capital. This research encourages the managers and employees of organizations to use the available organizational resources to implement knowledge management in organizations and improve knowledge management practices and human resources that are the most valuable resources of any organization in order to remain competitive in the markets.