research-article

Does Knowledge Management Matter? The Empirical Evidence from Market-Based Valuation

Authors:

Clyde W. HolsappleAuthors Info & Claims

ACM Transactions on Management Information Systems (TMIS), Volume 4, Issue 2

Article No.: 6, Pages 1 - 23

https://doi.org/10.1145/2500750

Published: 01 August 2013 Publication History

Abstract

Information technology is inseparable from contemporary knowledge management (KM). Although anecdotal evidence and individual case studies suggest that effective knowledge management initiatives contribute to superior firm performance, other kinds of empirical investigations are scarce, and more to the point, most of them are based on perceptions of survey participants embedded in the firms being studied. Moreover, studies analyzing the question of whether superior KM performance can predict superior market-based valuation appear to be virtually nonexistent. Findings of such studies would be of value to those who champion and direct a firm’s KM efforts, and to the firm’s strategists, planners, and operational managers. Here, we empirically examine the relationship between KM performance and firm valuation; the former is assessed by international panels of independent KM experts and the latter is evaluated in terms of market-based measures. Based on data spanning eight years, the results show that superior KM performance has a statistically significant positive association with firm valuation in terms of Tobin’s q, price-to-book ratio, and price-to-sales ratio. This study contributes to the management literature by using independent expert judges and archival data to substantiate the notion that KM competencies are an important ingredient in a firm’s performance as indicated by market-based valuation.

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Index Terms

Does Knowledge Management Matter? The Empirical Evidence from Market-Based Valuation
1. Information systems
  1. Information systems applications

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cover image ACM Transactions on Management Information Systems

ACM Transactions on Management Information Systems Volume 4, Issue 2

August 2013

113 pages

ISSN:2158-656X

EISSN:2158-6578

DOI:10.1145/2499962

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Publication History

Published: 01 August 2013

Accepted: 01 March 2013

Revised: 01 December 2012

Received: 01 May 2012

Published in TMIS Volume 4, Issue 2

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Cited By

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https://doi.org/10.24215/18539912e222
Bratianu CStănescu DMocanu R(2022)The mediating role of customer knowledge management on the innovative work behavior and product innovation relationshipKybernetes10.1108/K-09-2021-081852:11(5353-5384)Online publication date: 3-Aug-2022
https://doi.org/10.1108/K-09-2021-0818
Saura J(2020)Using Data Sciences in Digital Marketing: Framework, methods, and performance metricsJournal of Innovation & Knowledge10.1016/j.jik.2020.08.001Online publication date: Aug-2020
https://doi.org/10.1016/j.jik.2020.08.001
Chen LEllis SHolsapple C(2018)A knowledge management perspective of supplier development: Evidence from supply chain scholars and consultantsKnowledge and Process Management10.1002/kpm.156625:4(247-257)Online publication date: 8-May-2018
https://doi.org/10.1002/kpm.1566
Iskandar KJambak MKosala RPrabowo H(2017)Current Issue on Knowledge Management System for future researchProcedia Computer Science10.1016/j.procs.2017.10.011116:C(68-80)Online publication date: 1-Nov-2017
https://dl.acm.org/doi/10.1016/j.procs.2017.10.011
Jayasingam SGovindasamy MGarib Singh S(2016)Instilling affective commitment: insights on what makes knowledge workers want to stayManagement Research Review10.1108/MRR-03-2014-006039:3(266-288)Online publication date: 21-Mar-2016
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Holsapple CHsiao SOh J(2016)Parameters of knowledge management successSuccesses and Failures of Knowledge Management10.1016/B978-0-12-805187-0.00001-2(1-12)Online publication date: 2016
https://doi.org/10.1016/B978-0-12-805187-0.00001-2
Chen LEllis SHolsapple C(2015)Supplier Development: A Knowledge Management PerspectiveKnowledge and Process Management10.1002/kpm.147822:4(250-269)Online publication date: 23-Jul-2015
https://doi.org/10.1002/kpm.1478

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