Effects of knowledge management strategy on organizational performance: A complementarity theory-based approach

The extant research investigating the relationship between knowledge management (KM) strategies and organizational performance has yielded inconclusive results. Our paper revisits this research problem by drawing on complementarity theory from Economics. The empirical segment of our work is based on data on KM strategies and organizational performance from a sample of 131 Korean firms. Our results suggest three types of relationship among KM strategies: non-complementarity, and non-critical symmetric complementarity, and asymmetric complementarity. Integrating explicit-oriented with tacit-oriented KM strategies showed non-complementarity, which suggests a drag on obtaining higher levels of organizational performance. Our analysis of KM strategies based on KM source shows that companies could benefit from KM by implementing external-oriented or internal-oriented strategy. Combining the tacit-internal-oriented and explicit-external-oriented KM strategies indicates a complementarity relationship, which implies synergistic effects of KM strategies on performance.