Evaluation of knowledge management performance: An organic approach

•Re-conceptualize knowledge management capability.•Define knowledge management strategy from organic- and capability-based perspectives.•Develop an index to measure knowledge management performance at a specific time.•Simulate knowledge management performance evolution over time.

Knowledge management (KM) strategy is the planned or actual coordination of a firm's major goals and learning, in time, that continually co-align its knowledge-based resources with the environment. This study combined a survey study and system dynamics (SD) simulation to demonstrate an organic KM performance evaluation approach. The survey study was conducted based on a sample of 143 construction contractors, and used structural equation modeling (SEM) techniques to develop a KM performance index for reviewing the key elements that underpin KM strategy. The SD simulation predicted the development of KM strategy configurations and the evolution of KM performance over time.