The Effect of Learning-Based Distinctive Competencies on Firm Performance: A Study of Spanish Hospitality Firms

Abstract

In spite of the importance of knowledge assets, few empirical studies have examined how knowledge is generated in organizations and the effect of knowledge management on learning-based competencies. This research studies the effect of introducing knowledge management programs in the development of learning-based distinctive competencies as these factors relate to a firm’s performance. Based on responses from managers at 193 Spanish hospitality firms, the study concludes that the introduction of knowledge management principles and practices promotes creation of learning-based distinctive competencies, which, in conjunction with a knowledge management approach, has a positive causal relationship with firm performance. Learning-based distinctive competencies are essential to this model of organizational success, because the direct relationship between knowledge management and firm performance is not significant. It is worth noting that applying knowledge management practices weighs more heavily in the balance than does adoption of principles. Those practices are orientation towards the development, transfer, and protection of knowledge; continuous learning; an understanding of the organization as a global system; development of an innovative culture; an approach based on people; and competence development and management based on competencies.