Impact of knowledge management practices and human capital on organizational performance

Abstract

Prevalent competitive era has highlighted the importance of Knowledge as an important organizational resource. Its effective management is considered to be an antecedent to success, hence making the subject a ‘hot button’ for the practitioners and researchers. However, the domain of research has mostly been restricted to profit sector. Due to its peculiar context and secrecy compulsions, the research in the Armed Forces is sparse. This study, while not touching the red lines, is first of its kind in Pakistan that broadly investigates the impact of knowledge management practices and human capital on the organizational performance of Pakistan Security Forces. Due to current challenges to Low Intensity Conflict being faced by Pakistan Security Forces , where the adversary is under the curtains and operational environment are complex and multi dimensional, Pakistan Security Forces now need an informative and a thinking soldiers, i.e. who is innovative and creative to fight this menace. To lead such a body of troops, their superior officers are ought to be knowledgeable, skillful and embedded with leadership traits who can ensure performance differences. Measuring organizational performance in the context of Armed Forces is a complex issue. However, based on existing literature, a theoretical framework and a research model was conceptualized to ascertain the relation between Knowledge Management Practices and human capital on the organizational performance of Pakistan Security Forces. Field survey was conducted by using a questionnaire adapted from corporate sector and modified to the context having closed-ended questions. Questionnaires were administered amongst 300 respondents. Out of 250 received, 203 usable questionnaires were utilized for data analysis in SPSS. Statistical analyses revealed a positive significant relationship between Knowledge Management Practices and human capital on the organizational performance. It was also found that resourcefulness moderates relationship between human capital of officers and organizational performance of Pakistan Security Forces. The research findings are consistent with the previous research in the field of Knowledge Management. The study also contributed to theory by extending the Knowledge Management research within the Armed Forces context. Moreover, from the managerial perspective, the findings gave clear indications that would allow Armed Forces to understand the implications of Knowledge Management on organizational performance and to use this knowledge for implementing efficient and effective Knowledge Management. The findings can be utilized for policy making decisions.