Financial performance and global start-ups: the impact of knowledge management practices

Abstract

This paper investigates how knowledge management (KM) practices improve the financial performance of global start-ups (GSs). Using a database of 114 global innovative Italian start-ups, this study is based on the principal component analysis – data envelopment analysis (PCA-DEA) method. In particular, a survey was conducted to investigate KM practices and secondary data was used to evaluate financial performance. This research highlights that the adoption of different knowledge management practices (i.e., acquisition, documentation, creation, transfer and application) has a positive impact on the financial performance of global start-ups. The study contributes to the literature on international entrepreneurship, shedding light on the consequences of KM practices for global start-ups' financial performance, and provides guidelines for business owners, enabling them to understand better how knowledge management can facilitate the achievement of high levels of financial efficiency.