http://www.europeanbusinessreview.com 57The key function of knowledge management
is to help executives use it for employee devel-
opment. In this context, training has become
the forefront to success for organisations
worldwide. The more training opportunities
they provide for their employees, the better
and higher return on investment to share-
holders. Why is this, you may ask? Because
learning is a process that leads to acquiring
new insights and knowledge, and potentially
may correct sub-optimal or ineffective actions
and behaviours that cause companies to spiral
out of control.
Executives have found that organisational
learning as modifying behaviour results in
newer insight and knowledge. Thus, changing
existing behaviours of followers will generate
new knowledge, and is, therefore, a key factor in
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How can we establish the relationship
between knowledge management and organisa-
tional learning? Well, one scholar by the name
of Bayyavarapu suggests a learning-based
approach to knowledge management to under-
stand how organisational learning is related to
various processes of knowledge management.
More importantly, the effective implementation
of knowledge management requires learning
and sharing of best practises and experiences
among employees and thus enhances overall
organisational performance. However, a more
comprehensive model needs to be introduced
to put various aspects together of potential
contributions to organisational performance.
For example, an industry research conducted
by Lau and Tsui show that effective organ-
isational learning requires various processes
such as knowledge acquisition, collaboration,
dissemination, sharing, generation, and storage
to acquire knowledge within an organisation.
Knowledge management improves organ-
isational processes through various practises
and can also enhance organisational learning
that increases both follower engagement and
personal development.Knowledge Management is the Key
to Firm Performance
Executives today realise that knowledge is one
of the most strategic factors for organisations
from a competitive standpoint. The question lies
in how to maintain, store retrieve, and protect it.
This has been a focal point of organisations since
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be an ongoing issue for leaders. Knowledge
creation and utilisation are pertinent to an organ-
isation’s success, thus, executives create new ideas
and knowledge for innovation and to motivate
employees to solve their current problems in a
more innovative manner. The acquisition of new
knowledge is an ongoing process and can be
essential to identify the needs of customers and
recognise changes in the business environment.
Executives then integrate knowledge inter-
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in various systems and processes, as well as to be
more responsive to market changes. In knowl-
edge integration, the accumulated knowledgeKnowledge management improves organisational processes through
various practises and can also enhance organisational learning that
increases both follower engagement and personal development.