Abstract
In this paper the impact and predictive effects of knowledge management on financial performance are analysed. The research also includes an analysis of the moderating effects of two moderators (National Origin and Enterprise Size) and their relationship. The data was gathered by interviewing 520 managers from manufacturing companies operating in Serbia. The most important conclusions of the research are: 1. High levels of knowledge management positively influence business performance, quality and competitiveness. 2. Financial performance is mainly influenced by the dimensions connected to the effects of knowledge management regarding its implementation and protection and the acquisition of competitive advantages. 3. Knowledge management strongly influences the market aspects of business, but also the increase of fixed assets. 4. Knowledge management has a slightly greater impact on financial performance in foreign enterprises (operating in Serbia) compared to domestic (Serbian) enterprises. The situation is similar when comparing medium and large enterprises (a higher impact) with small enterprises (a smaller impact). 5. The greatest effects are achieved when an effective organizational structure is in place, when the organization protects its knowledge, when it manages to materialize the knowledge gathered in the form of the efficient application of knowledge.
Highlights
It should be emphasized that, thanks to the results presented in this paper, the influences of knowledge management on the enterprises’ financial performance were analyzed for the first time in the specific, transitional conditions, which are present in Serbia
Based on this, hypothesis H1 is confirmed. Results concerning this question are consequent with the majority of existing researches (Mageswari et al, 2017; Razzaq et al, 2019; Najmi et al, 2018; Chen & Huang, 2009; Lee et al, 2008; Darroch, 2005). When it comes to the knowledge management dimensions, KM9 – Competitive Advantage; KM7 – Knowledge Application Processes; and KM8 – Knowledge Protection Processes have the strongest impact on financial performance
This study shows that KM has a somewhat greater impact on financial performance in foreign companies that operate in Serbia than in domestic (Serbian) companies
Summary
In today’s economy, characterized by dynamic changes and business challenges, it is crucial for organizations to develop knowledge-based strategies in order to achieve a competitive advan-. Journal of Business Economics and Management, 2021, 22(6): 1436–1455 tage on the market. In this way, by knowledge management concept, companies successfully make preparations to cope with demanding and chaotic business circumstances. The characteristics of human resources (socio-demographic and psychological) and those of the companies where employees work play a large role in the implementation of knowledge management programs in enterprises.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
