Knowledge management, supply chain technologies, and firm performance

Abstract

PurposeThe purpose of this paper is to provide a conceptual overview of the relationship between knowledge management, supply chain technology investments, and overall firm performance. Additionally, a historical review of supply chain development is offered along with a comprehensive list of supply chain measures currently in use and a discussion of how those measures align within the overall firm strategy.Design/methodology/approachBuilding on knowledge management theory, the paper argues herein that the transitory nature of firm‐level differentiation and the ease with which competitors gain access to each others' business strategies demand that firms stay flexible. It is also argued that translating firm knowledge resources into useable knowledge management capabilities may enable firms to enhance their likelihood of competitive advantage.FindingsMany leading firms drive towards new advantages through supply chain information capturing investments. By capturing data and mining that information, firms are better equipped to identify impending changes in the environment and to adjust their strategies accordingly.Practical implicationsFirms that have a developed sense of competiveness are more likely to capture and utilize the increased datum provided by IT investments and more likely to implement that knowledge in a way that leads to operational improvements. As firms pursue global markets, supply chain complexity grows exponentially. Firms will need to respond and operations managers will need to find ways to empirically measure their performance to find improvements. Every investment in supply technology should be driven by an understanding of the inextricably inter‐connectedness of knowledge management capabilities and the firm's ability to effectively implement its corporate strategies. By emphasizing the inter‐connection between knowledge management and supply chain technology investments, firms improve their potential for developing a competitive advantage.Originality/valueThis paper provides a unique conceptual framework intended to aid researchers and managers develop a more thorough understanding of the linkages between knowledge management capabilities, supply chain technology investments, and overall firm performance.