A Holistic Perspective on the Performance Implications of Strategic Alignment in Knowledge Management

Recently, the importance of the information technology (IT) for effective knowledge management (KM) activities has been noted. The match of IT and KM is an important concern for executives. However, their efforts do not always yield positive organizational outcome since enough exceptions indicate that knowledge strategy and human resource management (HRM) strategy are interdependent that must be integrated with IT as a whole. Consequently, a linkage of effective IT strategy and KM strategy that are consistent with HRM strategy is the key to reduced costs, which in turn, will achieve a higher performance. Drawing on the concept of strategic alignment, this study proposes a KM strategic alignment model in the MIS area within which KM strategy, IT strategy, and HRM strategy, coexist. Survey research method is employed in this study. Empirical data for hypotheses testing are collected from top-ranking companies in Taiwan, yielding 161 valid samples. Performance implications of strategic alignment are examined using covariation approaches. The results suggest that strategic alignment among these three strategies contributes to business performance. Based on the research results, meaningful findings and conclusions are described and suggestions for future research are proposed.