Knowledge management adoption and its impact on organizational learning and non-financial performance

Abstract

This paper aims to investigate the determinants of knowledge management (KM) adoption on organizational and individual level, as well as its impact on non-financial performance through an intermediary of organizational learning (“OL”). The KM adoption model was constructed by using a combination of TOE (Technology, Organizational and Environment) for the organizational level and TPE (Technology, Personal, and Environmental) framework for the individual level; this we called the TOPE (Technology, Personal, Organizational, and Environment) framework. Questionnaires were sent to 60 Indonesian big companies which participated in the Most Admired Knowledge Enterprise (MAKE) Award. Data from 139 respondents (51 companies) was analysed using partial least squares (PLS). This study showed the most essential factors influencing KM adoption and practice are perceived usefulness, ease of use of KM technology, industrial factors, management support, organization culture, and IT infrastructure. Meanwhile, the factors that are loosely connected to adoption initiative and KM practice are mimetic pressure, strategic planning, and organizational structure. In addition, the result of this study inferred that KM adoption and implementation fairly impact on the improvement of non-financial performance by the intermediary of organizational learning capability improvement.