Effect of Knowledge Management on Organizational Performance in Capacity Building in the Public Organizations of Ethiopia

Abstract

This study explores the interrelationships among knowledge management, human resource strategies, and organizational performance, highlighting their significance in enhancing business outcomes. Utilizing regression analysis, the findings reveal a strong direct influence of knowledge management on organizational performance, with a path coefficient of 0.47. Additionally, the research identifies an indirect influence where knowledge management enhances organizational performance through human resource strategies, yielding a combined influence of 0.96, indicating partial mediation. These results underscore the importance of integrating knowledge management into HR practices to foster a culture of collaboration and continuous learning. The study offers practical and theoretical implications, suggesting that organizations should prioritize knowledge management initiatives and align them with human resource strategies to optimize performance. Future research directions are proposed, focusing on the impact of emerging technologies, cultural factors, and longitudinal assessments to further deepen the understanding of these dynamics.