Impact of Knowledge Management Practices on Selected Industries: A Structural Equation Modeling Approach

There has been a transformation of an era of information scarcity to information surplus, so the key global pressures on management are knowledge identification, creation and dissemination. The development of knowledge management represented one of the most significant management movements in such environment. Using the literature review, this paper developed a knowledge management instrument and it tested a conceptual model linking knowledge management practices and organizational performance, using descriptive statistics and structural equation modeling technique. Primary data was collected from SMEs of three industries i.e. software, pharmaceutical and textiles in North India. The study confirmed the relationship between adoption of knowledge management practices and improved organizational performance, competitiveness and employee retention rates in the selected SMEs.