Jurnal Dinamika Manajemen, 12 (2) 2021, 285-290

http://jdm.unnes.ac.id
Nationally Accredited based on the Decree of the Minister of Research,
Technology and Higher Education, Number 85/M/KPT/2020

A Literature Review of Knowledge Management Role in Employee

Performance
Tri Hadi Sulistyanto , Masyhudzulhak Djamil, Ahmad Hidayat Sutawidjaya,


Lenny Christina Nawangsari

Faculty of Economics and Business, Mercu Buana University, Jakarta, Indonesia
Info Article Abstract
History Article: This review aimed to discuss current literatures of Knowledge Management (KM) role in employee
Submitted 30 July 2021
performance. This paper reviewed articles about the effect of KM on performance from several dif-
Revised 2 December 2021
Accepted 12 November ferent countries. The result of the study shows that all article reviewed have the same same conclusion
that there is a positive relationship between KM and employee performance. The important findings
Keywords: suggest that KM is a major indirect factor of organizational performance. Also, KM occupies an impor-
Knowledge Management;
tant role in forming an effective platform for learning organizations. However, how knowledge man-
Employee Performance;
Literature Review. agement influences competitive advantage such as knowledge, behavior, attitude, and its influence on
performance had not attract the attention of researchers. This study suggests future studies to include
intervening variables such as competitive advantage, knowledge, behavior, and attitude, to gain a deeper
understanding of knowledge management’s role in improving employee performance..

Telaah Pustaka tentang Peran Knowledge Management terhadap Kinerja

Karyawan

Abstrak
Telaah Pustaka ini bertujuan untuk membahas literatur terkini tentang peran Knowledge Manage-
ment (KM) dalam kinerja karyawan. Makalah ini mengulas artikel-artikel tentang pengaruh KM
terhadap kinerja dari beberapa negara yang berbeda. Hasil penelitian yang telah dilakukan menun-
jukkan bahwa semua artikel yang ditelaah memiliki kesimpulan yang sama bahwa ada hubungan
positif antara KM dengan kinerja karyawan. Temuan penting lainnya menunjukkan bahwa KM
merupakan faktor tidak langsung dari kinerja organisasi. KM juga menempati peran penting dalam
membentuk platform yang efektif untuk organisasi pembelajaran. Namun, bagaimana manajemen
pengetahuan mempengaruhi keunggulan kompetitif seperti pengetahuan, perilaku, sikap, dan pen-
garuhnya terhadap kinerja belum menarik perhatian peneliti. Telaah pustaka ini menyarankan studi
masa depan untuk memasukkan variabel intervening seperti keunggulan kompetitif, pengetahuan,
perilaku, dan sikap, untuk mendapatkan pemahaman yang lebih dalam tentang peran manajemen
pengetahuan dalam meningkatkan kinerja karyawan.

JEL Classification: M12

How to Cite: Sulistyanto, T. H., Djamil, M., Sutawidjaya, A. H., Nawangsari, L. C.(2021). A Literature Review of Knowledge Management Role in
Employee Performance. Jurnal Dinamika Manajemen, 12(2), 285-290.

ISSN

Correspondence Address 2086-0668 (print)
Institutional address : Universitas Mercu Buana, Jl. Raya Meruya Selatan 01 Kembangan, Jakarta 2337-5434 (online)
Email: [email protected] , [email protected] DOI: xxxxxxxxxxxxxx
 Jurnal Dinamika Manajemen, 12 (2) 2021, 285-290

INTRODUCTION wledge within organizations and knowledge ac-

quisition involves the process of finding, ackno-
Knowledge Management (KM) is the pro- wledging, and assimilating new knowledge from
cess within a company’s performance by desig- outside the organizations. After the creation and
ning and implementing tools, processes, systems, acquisition of the new knowledge, the knowledge
structures, and culture to develop or improve, management system and the process of incoming
create, share, and use the knowledge (Noe & knowledge must be prepared and transmit into
Kodwani, 2018) Pasher & Ronen (2011) defin- the organization’s memory for optimal reuse in
ed knowledge management as an experience (or the long run. This what knowledge improvement
expertise) combined with data and information, is (Singh et al., 2021; Sulistyanto et al., 2021) .
to solve problems and create value. KM is to inc- Managers need to know whether the emp-
rease organizational tangible assets by upgrading loyees do their work efficiently and effectively.
intangible assets or so-called intellectual capital. This is what the performance management system
KM is widely discussed in scientific management does by setting performance standards to evalua-
articles, both abroad and in Indonesia. By using te employee performance (Robbins et al., 2019).
the keyword KM on Google Scholar, we got KM described in its first cycle including know-
135,000 results of articles and books above the ledge creation or acquisition. Knowledge creati-
year 2015. Regardless of the publishing years, the on refers to the development of new knowledge
keyword produced 1,490,000 articles and books. within organizations and knowledge acquisition
When we use the same keywords in Scimago, it involves the process of finding, acknowledging,
result 68 articles with knowledge management and assimilating new knowledge from outside the
in their titles then in Scopus result 16 scientific organizations. After the creation and acquisition
journals with the same words in their titles. They of the new knowledge, the knowledge manage-
are eight articles taken from researches who con- ment system and the process of incoming kno-
ducted in different countries: in Iran by Valmo- wledge must be prepared and transmit into the
hammadi et al. (2019), Kuwait by Dzenopoljac organization’s memory for optimal reuse in the
et al. (2018), in Kurdistan by Anwar & Ghafoor long run. This what knowledge improvement is.
(2017), in Zimbabwe by Tarambiwa & Mafini Subsequently, the enhanced knowledge is recor-
(2017), in Pakistan by Akram & Hilman (2018), ded in various storage media and becomes a part
in Ethiopia by Seifu et al. (2019), in Saudi Arabia of the organization’s memory. It remains stored in
by Alyoubi et al. (2018), and in Indonesia by Su- the minds of the organization members, electro-
banidja & Hadiwidjojo (2017). nic repositories, and the organization’s groups or
Managers need to know whether the emp- teams may obtain and maintain at whatever time
loyees do their work efficiently and effectively. as it is embedded both in its internal and external
This is what the performance management sys- relations, business processes, products, and ser-
tem does by setting performance standards to vices (Gunsel et al., 2011). This author also con-
evaluate employee performance (Robbins et al., ducted research to provide a holistic approach to
2019). KM described in its first cycle including build innovation in companies based on knowled-
knowledge creation or acquisition. Knowledge ge management and organizational learning capa-
creation refers to the development of new kno- bilities (OLC). Figure 1 illustrates its cycle.

Source: Gunsel et al, (2011)

Figure 1. Improved Knowledge Management Cycle

286
 Tri Hadi Sulistyanto et al. / A Literature Review of Knowledge Management Role in Employee Performance

KM proposed as a multidisciplinary in Google Scholar, Scimago, and Scopus (Adri-

construction with a learning orientation, kno- aanse & Rensleigh, 2013; Meho & Yang, 2006);
wledge sharing, organization memory, and the 2) preselecting articles published above the year
reuse of knowledge (Farooq, 2019). The di- 2010; (3) choosing those with titles containing
mensions are shown in Figure 2. In this figure, the word “competency” and/or “performan-
there are four aspect important for KM: Lear- ce”; and 4) selecting articles from Iran, Kuwait,
ning Orientation, Knowledge Sharing, Organi- Kurdistan, Zimbabwe, Pakistan, Ethiopia, Saudi
zational Memory and Knowledge Reuse. Arabia, and Indonesia.

RESULTS AND DISCUSSION

In Iran KM underlined in two vital roles:

First, the empirical role of knowledge manage-
ment to improve performance, which has not
been widely discussed. Second, the company’s
Source: (Farooq, 2019) role in reducing the gap between performance
Figure 2. Theoretical Model of Knowledge (performance improvement) to increase the
Management growth of knowledge-based industries (Val-
mohammadi et al., 2019). It is concluded that
Theoretical Model of Knowledge Mana- knowledge management practices can positi-
gement described three components of team vely and significantly influence the sustainable
performance as in Figure 3: Behavior, Know- performance of knowledge-based companies or
ledge and Attitudes. This Figure implies the industries that make sophisticated machinery
required behavior is that team members must and equipment. Correspondingly, two scholars
galvanize to build communication, coordinati- presented a framework for performance evalu-
on, adaptation, and complex task completion ation through a balance scoreboard (Houck et
allowing them to achieve their preset goals. The al., 2012; Pislaru et al., 2019). Valmohammadi
knowledge component requires team members in Iran also concluded that knowledge mana-
to have their mental or memory effectively fun- gement has a significant influence on the inno-
ction in any unexpected or new situations. The vation process (Valmohammadi et al., 2019).
attitude deals with the assurance of team mem- This is in line with other authors discussed KM
bers’ tasks and feelings toward each other (Noe (Joshi & Chawla, 2018; Mills & Smith, 2011;
& Kodwani, 2018). Wuryaningrat et al., 2019) . Figure 3 presents
Valmohammadi’s research conceptual model.

Source: (Noe & Kodwani, 2018)

Figure 3. Components of Team Performance Source: (Valmohammadi et al., 2019)
Figure 4. Valmohammadi’s Research Concep-
tual Model
METHOD

The method used in this paper is descrip- The role of knowledge management exa-
tive analysis. The data were collected through mined in business performance as felt by com-
literature reviewas follow: 1) determining the pany employees in Kuwait (Dzenopoljac et al.,
keywords “knowledge management” to search 2018). They highlighted that the process of gai-

287
 Jurnal Dinamika Manajemen, 12 (2) 2021, 285-290

ning knowledge is important. The first process is dynamic capabilities have a significant influence
knowledge creation. If it is original and valuable on employee performance in the banking sector
to the organization, it could be considered as a of Pakistan (Akram & Hilman, 2018). Figure 5
part of the knowledge generation. The next pro- illustrates their research framework.
cess is codification and storage. It includes co-
dification, classification, formation, knowledge
arrangement in a useful format, and storing. This
enables extensive use by the right person, at the
right time, in the right way. The third process is
knowledge transfer and sharing, which is related
to the effectiveness of knowledge management by Source: (Akram & Hilman, 2018)
focusing on managing new knowledge and trans- Figure 5. Role of KM Activities and Dynamic
ferring existing knowledge in the company. The Capabilities on Employee Performance
final process is the use of knowledge and evaluati-
on, which mainly relates to the use of knowledge Conducted in Ethiopia, a group of resear-
that has been produced, codified, and shared. It cher lead by Seifu in 2019 contended that there
is executable practicable only by a proper imple- is an overall positive effect of knowledge ma-
mentation to add value to the company. The nagement practices on the performance of the
results of the research show that the four know- Agricultural Transformation Agency (ATA) in
ledge management processes (i.e., development Adis Ababa Ethiopia. Knowledge management
and knowledge, codification and storage, transfer is the most influential strategy in public orga-
and sharing, use and evaluation) have a positive nizations (Seifu et al., 2019). The research ac-
and significant impact on perceptions of business centuated that the influence of knowledge ma-
performance. Besides, this research emphasized nagement on ATA performance is insufficient
that the knowledge management process has the because most of its elements, such as techno-
highest impact on innovation performance. logy, are not effectively utilized. Figure 6 shows
A study about the relationship between their research model.
KM and organization performance in Kurdis-
tan contended that there is a relationship bet-
ween knowledge transfer and performance of
the organization in private universities, com-
pared to other KM processes (Anwar & Gha- Source: (Seifu et al., 2019)
foor, 2017). They also highlighted the weak- Figure 6. Research Model of Seifu et al. (2019)
nesses of the knowledge management process
in education sectors which including knowled- In Saudi Arabia a group of researcher in-
ge creation, knowledge acquisition, and know- vestigated the influence of KM on performan-
ledge refinement. ce and found a positive and significant effect
Conducted in Zimbabwe, the research of of KM process and approach on job satisfacti-
Tarambiwa & Mafini (2017) showed that the on and performance (Alyoubi et al., 2018). It
combination of information technology and also asserted that knowledge sharing, knowled-
knowledge management has the greatest impact ge retention, codification, and personalization
on the performance of the exports department approaches have a significant effect on job sa-
(Tarambiwa & Mafini, 2020). It enhanced the tisfaction. Conversely, knowledge acquisition,
company’s export strategy, commitments, orien- knowledge creation, and social networking ap-
tation, growth, sales, profits, and market share. proaches do not have a significant effect on job
Additionally, research in Pakistan conclu- satisfaction. Figure 7 shows the research model
ded that knowledge management activities and of the research conducted in Saudi Arabia.

288
 Tri Hadi Sulistyanto et al. / A Literature Review of Knowledge Management Role in Employee Performance

influences competitive advantage such as kno-

wledge, behavior, attitude, and its influence on
performance had not attract the attention of re-
searchers. By considering all existing models, the
author proposes a modified model as follows:
Source: (Alyoubi et al., 2018)
Figure 7. Role of KM on Work Performance

The research provided the knowledge

management process and approach as the an-
tecedents of job satisfaction and performance,
which has not been previously examined. Its
Source: Author (2021)
main finding is that the existence of the know- Figure 9. The Model of Knowledge Management Ef-
ledge management process and approach in a fect on Performance
work environment is positively associated with
high job satisfaction. This model suggests how knowledge ma-
In Indonesia, Subanidja and Hadiwidjojo nagement influences competitive advantage,
in 2017 investigating the effect of KM on perfor- knowledge, behavior, attitude and how it di-
mance concluded that KM qualifies as a variable rectly influences performance.
of independence, moderation, or intervention.
Ngah, Tai, and Bontis in 2016 claimed to have REFERENCES
conducted the first study of knowledge mana-
gement and learning organizations in the public Adriaanse, L. S., & Rensleigh, C. (2013). Web
sector of Dubai or the United Arab Emirates. Fi- of Science, Scopus and Google Scholar:
gure 8 illustrates the research framework (Ngah a Content Comprehensiveness Compari-
et al., 2016; Subanidja & Hadiwidjojo, 2017). son. The Electronic Library.
Akram, K., & Hilman, H. (2018). Effect of
Knowledge Management Activities
and Dynamic Capabilities on Em-
Source: (Ngah et al., 2016) ployee Performance in the Banking
Figure 8. Role of KM Capability on Organization Sector: Empirical Evidence from Paki-
Performance stan. Studies in Business and Economics,
13(2), 41–60.
The important findings suggest that know- Alyoubi, B., Hoque, Md. R., Alharbi, I., Alyoubi,
ledge management capability is a major indirect A., & Almazmomi, N. (2018). Impact of
factor of organizational performance through Knowledge Management on Employee
learning organizations. Also, KM occupies an Work Performance: Evidence from Sau-
important role in forming an effective platform di Arabia. The International Technology
for learning organizations. Other findings show Management Review, 7(1), 13.
that learning organization is a mediator of KM Anwar, K., & Ghafoor, C. (2017). Knowl-
and organizational performance. edge Management and Organizational
Performance: a Study of Private Uni-
CONCLUSIONS versities in Kurdistan. International
Journal of Social Sciences & Educational
Those articles come to the same conclu- Studies, 4(2), 53.
sion that KM has a positive effect on perfor- Dzenopoljac, V., Alasadi, R., Zaim, H., & Bontis,
mance. However, how knowledge management N. (2018). Impact of Knowledge Manage-

289
 Jurnal Dinamika Manajemen, 12 (2) 2021, 285-290

ment Processes on Business Performance: Robbins, S. P., Coulter, M. A., DeCenzo, D.

Evidence from Kuwait. Knowledge and A., & de Cenzo, D. A. (2019). Funda-
Process Management, 25(2), 77–87. mentals of Management, eBook. Pearson
Farooq, R. (2019). Developing a Conceptual Higher Ed.
Framework of Knowledge Management. Seifu, H., Timbula, M. A., & Negash, E. (2019).
International Journal of Innovation Science, Effect of Knowledge Management on Or-
11(1), 139–160. ganizational Performance in Addis Aba-
Gunsel, A., Siachou, E., & Acar, A. Z. (2011). ba, Ethiopia: a Case Study in Ethiopian
Knowledge Management and Learning Agricultural Trans-formation Agency
Capability to Enhance Organizational In- (ata). International Journal of Commerce
novativeness. Procedia-Social and Behav- and Finance, 5(2), 97–105.
ioral Sciences, 24, 880–888. Singh, V. K., Singh, P., Karmakar, M., Leta, J.,
Houck, M., Speaker, P. J., Fleming, A. S., & Ri- & Mayr, P. (2021). The Journal Coverage
ley, R. A. (2012). The Balanced Score- of Web of Science, Scopus and Dimen-
card: Sustainable Performance Assess- sions: A comparative Analysis. Sciento-
ment for Forensic Laboratories. Science & metrics, 126(6), 5113–5142.
Justice, 52(4), 209–216. Subanidja, S., & Hadiwidjojo, D. (2017).
Joshi, H., & Chawla, D. (2018). Knowledge The Influence of Knowledge Manage-
Management and Performance Improve- ment “Bottleneck” on Company’s Per-
ment in Indian Organisations. Interna- formance. Management & Marketing,
tional Journal of Knowledge Management 12(3), 402–415.
Studies, 9(2), 164. Sulistyanto, T. H., Djamil, M., Sutawijaya, A.
Meho, L. I., & Yang, K. (2006). A New Era in H., & Nawangsari, L. C. (2021). Business
Citation and Bibliometric Analyses: Web Models for Cleaning Service Companies
of Science, Scopus, and Google Scholar. in Jakarta. Academy of Entrepreneurship
ArXiv Preprint Cs/0612132. Journal, 27(5).
Mills, A. M., & Smith, T. A. (2011). Knowledge Tarambiwa, E., & Mafini, C. (2020). The Role
Management and Organizational Perfor- of Knowledge Management Systems on
mance: a Decomposed View. Journal of the Export Performance of Manufactur-
Knowledge Management, 15(1), 156–171. ing Firms: Evidence from Zimbabwe. In-
Ngah, R., Tai, T., & Bontis, N. (2016). Knowl- ternational Journal of EBusiness and EGov-
edge Management Capabilities and ernment Studies, 9(2), 88–105.
Organizational Performance in Roads Valmohammadi, C., Sofiyabadi, J., & Kolahi,
and Transport Authority of Dubai: The B. (2019). How do Knowledge Man-
mediating role of Learning Organiza- agement Practices Affect Sustainable
tion. Knowledge and Process Management, Balanced Performance? Mediating Role
23(3), 184–193. of Innovation Practices. Sustainability,
Noe, R. A., & Kodwani, A. D. (2018). Employee 11(18), 5129.
training and development, 7e. McGraw- Wuryaningrat, N. F., Kindangen, P., Sendouw,
Hill Education. G., & Lumanouw, B. (2019). How To
Pislaru, M., Herghiligiu, I. V., & Robu, I.-B. (2019). Develop Innovation Capabilities On
Corporate Sustainable Performance As- Creative Industry. International Journal of
sessment Based on Fuzzy Logic. Journal of Applied Business and International Man-
Cleaner Production, 223, 998–1013. agement, 4(1), 93–102.

290