EFFECT OF KNOWLEDGE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE: THE CASE OF CONSTRUCTION PROJECTS UNDER CARE ETHIOPIA

Abstract

In today’s knowledge-based economy, organizations are expected to manage their knowledge in scientific and well-organized way in order to sustain their competitive advantages since knowledge-based view theory identified knowledge as what organizations dominate in their business life. The purpose of study was aimed to examine the practices of KM and its effects on organizational performance of CARE ETHIOPIA. To achieve the purpose, the study employed explanatory and descriptive research design by focusing on all staffs of CARE with a sample of 110 staffs. Quantitative and qualitative data collected through questionnaire and interview was analyzed in descriptive and inferential statistics and SPSS 27 versions was used for descriptive analysis while regression was used inferential statistics. The findings of the study established as there is a great gap in practicing KM (knowledge acquisition, sharing and application), there is no KM policies and procedures, knowledge sharing and knowledge application have a significant direct effect on organizational performance and intellectual capital has a significant mediating effect on performance. The management of the company can use these findings to develop KM policies and procedures, facilitate KM practices by using various mechanisms and the company should establish a system of reward management to motivate staffs as well as it should have a mechanism to retain the knowledge from staffs who leave the company.