Validation of the New Knowledge Management Claim

Recently, a new theory emerged in the field of Second Generation Knowledge Management. This theory is labeled ‘New Knowledge Management’ and was introduced by McElroy (2003). The theory is new to the extent that it brings together several known concepts concerning knowledge management in a unique combination. In its essence, the theory consists of fourteen policies that organizations should apply to improve performance. More precisely, the theory claims that application of the fourteen policies leads to corporate sustainability and sustainable innovation. However, this claim has not been empirically validated yet. In this paper, we present a research model for validating this claim. The empirical validation of the claim has been conducted using survey data collected from 30 organizations. Results from statistical analysis indicates that application of New Knowledge Management indeed is present in more sustainable organizations, but not in innovative organizations, as proposed by its claim. In addition, it was found that corporate sustainability also heavily depends on the external orientation of organizations. This implies that the application of NKM theory is an important but not the only critical condition for organizations to obtain a sustainable position.