Improved Organizational Performance by Knowledge Management: The Influence of Employee Perceptions and Variances in Distributed E- Government and E-Business Organizations

We seek to develop eight theoretical propositions relating use of a knowledge management system to improved performance in either the public or private sectors if employee perceptions of an organization’s (1) formal incentives, (2) normative values, (3) inter-employee trust, and (4) enabling knowledge technologies cumulatively motivate employees to believe the benefits to knowledge exchange behaviors exceed the costs. Together, these four elements represent an organization’s motivational attributes, which indirectly determine the net effect knowledge management has on organizational performance. These motivational attributes influence adoption of an organization’s knowledge processes as supported by information systems. Favorable perceptions translate into successful adoption of an organization’s knowledge processes. In turn, employee process adoption directly influences the contribution of knowledge management to improved organizational performance, to include organizational efficiency and organizational responsiveness. Either (1) low reports of or (2) large variances in employee perceptions of an organization’s motivational attributes may result indirectly in negligible improved organizational performance by knowledge management. Similarly, (1) low reports of or (2) large variances in the adoption of an organization’s knowledge processes may result directly in negligible improved organizational performance. We then employ a parsimonious mathematical model to demonstrate our theoretical propositions, recognizing other variables may also influence knowledge exchange behaviors in an organization. Seeking to urge future empirical research to support the theoretical propositions presented herein, our paper’s conclusions strongly suggest that knowledge exchange research provides an intriguing venue where variance, not just magnitude, in employee perceptions and process adoption can influence improved or reduced organizational performance.