The role of Information Technology capability in Knowledge Management and firm performance from the organizational capabilities perspective; introducing and testing a model of knowledge-based capabilities and performance

Knowledge management (KM) has attracted significant attention from researchers and practitioners as a facilitator for firm’s performance. In order to make knowledge management effective, knowledge infrastructure and process capabilities should be complementary and be fostered by appropriate antecedents. Thus, it is obvious that the KM process is a critical variable through which infrastructure capability, information technology (IT) capability, and business strategy affect the firm performance. Accordingly, the total effects of these variables on performance were modeled by use of analysis of moment structures software and the proposed model of the current study was investigated. Data from 80 top managers of small enterprises located in Toos industrial town as well as those located in Khorasan Science & Technology Park provided empirical support for this issue. Finally, with a trivial modification, proposed model was confirmed in which knowledge process capability is a potent intermediary variable for other variables to affect performance. Of the three variables of the study, knowledge infrastructure capability and business strategy have a direct effect on performance, while the effect of IT capability on performance is only applied through the other variables.