Knowledge Management Capability: A Resource-Based Comparison of Public and Private Organizations

This study seeks to understand the underlying mechanisms through which knowledge management (KM) influences organizational performance based on the concept of KM capability. It is proposed that organizational and human resources moderate the effects of physical resources on KM capability. The effect of KM capability under environmental dynamism is also examined. Recognizing that public organizations are increasingly embracing KM, we also investigate how resources differ in public and private organizations to understand how their KM endeavors may vary. Survey findings indicate that organizational centralization, formalization, and social capital differ in public and private organizations and they strengthen the effect of physical resources on KM capability. The effect of KM capability on performance is also stronger in dynamic environments. This study contributes theoretical explanations of the effects of KM resources on performance in the face of environmental dynamism and highlights the need to further study the phenomenon in public organizations.