Knowledge Management in Public and Nonprofit Organizations: A Transactive Memory and Employee Perspective

Abstract

Both public and nonprofit organizations are increasingly relying on teams to solve tasks that are too complex or multifaceted for individuals to solve on their own. The coordination, processing and sharing of internal knowledge on projects and tasks is therefore of growing importance within a systematic internal stakeholder management. Theoretically, this study draws on the transactive memory system (TMS) approach to explain the development of knowledge management and its possible positive effects on team performance and job satisfaction. Data from 86 team leaders and 414 team members of 5 public and 5 nonprofit organizations was collected and analyzed. The results reveal that a team-oriented transformational leadership style has an impact on the development of a functioning transactive memory system. We also find a moderating effect of task complexity on the relationship between TMS and team performance. In addition, the findings suggest that an individual-focused leadership style is positively related to job satisfaction. Finally, we find a cross-level effect of a transactive memory system on individual job satisfaction.