Can knowledge management influence firms' performance?

The aim of this paper is to analyze the influence of knowledge management on business performance. First, a review of the literature has been made, in order to define the most common dimensions of knowledge management and results for subsequent measurement. The dimensions of knowledge management have been: creation, storage and transfer and the application and use of knowledge. Information acquisition, dissemination and interpretation have been used as measures for the creation of knowledge. Also, empowerment, teamwork and commitment to knowledge have been used as measures of implementation and use of knowledge. The dimensions of the results used have been: operating results, financial and innovation. The methodology used is based on case study, through primary and secondary data. The results show that knowledge management influences operating results, but also financial and innovation results. Thus, the companies studied which have a higher degree of knowledge management through teamwork, increased empowerment, flexibility in decision-making and a general view of the company, including practices, obtain better results regarding operation, but also financial and innovation results.