Impact of Knowledge Capabilities on Organisational Performance in the Private Sector in Oman

Abstract

The authors examine various aspects of the organizational knowledge capabilities and assess their impact on the organizational performance of private firms in Oman. Ten hypotheses are developed, linking the dimensions of organizational knowledge capabilities (OKC) (technological, cultural, managerial, and collaborative) with the aspects of performance. The path analysis technique is used to test the hypotheses; only four hypotheses depicted the effect of OKC on performance. They find that managerial capabilities play a significant role but have an indirect positive effect on enhancing performance. They have a higher impact only when they are inter-linked with collaborative capabilities, which have a direct and significant effect on performance. This paper deciphers the various knowledge capabilities and establishes inter-linkages among them in the firm context. The results enable the development of a productive knowledge management ecosystem in the business environment and spotlight on the wise investment of IT in achieving business goals.