Impact of Knowledge Management on Organizational Performance with the Mediating effect of Strategic Human Resource Management and Innovation: A Case of Pakistani Telecom Sector

Abstract

Knowledge Management has a critical part in sustaining an organization’s competitiveness. Effect of knowledge management practices on organizational performance remains a complex problem requiring further investigation. This research empirically examines the connotation of knowledge management and organizational performance under the mediation of strategic human resource practices and organizational innovation in the Telecom Sector of Pakistan. Constant competition is the major problem troubling the telecom owners of the country. Hence, the topmanagement needs to recognize those strategies that can assist them in developing such mechanisms that can upgrade employee performance to the level of achieving and sustaining a superior competitive advantage. Human resource practices are the principal means through which organizations can impact and form their employees’ skills, attitudes, and behavior accordingly to vision. Innovation is an acute enabler for organizations for generating worth and enduring competitive advantage in a progressively multifaceted and changing environment. The sample study of this research consists of five hundred employees from the Telecom Sector of Pakistan. Response rate was 80% and was analyzed through the SPSS 18.0V spreadsheet. Regression analyses confirm that direct relation exists between the independent and dependent variables of this research. Correlation tests show all dimensions to be positively correlated with the inclusion of the dependent variable, organizational performance and a weak linear correlation between SHRM and innovation proving that both mediators support each other’s cumulative effect. It is suggested that knowledge integrated capacity and knowledge management practices are contributory in effective consumption of core competencies for accomplishing organizational goals. Organizations recognize SHRM practices first, and then use them for generating organizational proficiency for completing aims of their business. Innovation has the functionality for developing what the organization needs to familiarize for remaining a worthwhile establishment in a competitive environment; consequently, knowledge workers shall gain strength from innovative practices, allowing their organization to exhibit growth.