Impact of knowledge management and ICT on operational efficiency: an empirical study

Abstract

The purpose of this study is to investigate the relationship between knowledge management practices (KMPs), information communication technology (ICT) and operational efficiency (OE) from financial perspective. Five hypotheses are developed with the help of literature review and are tested through the application of confirmatory factor analysis (CFA) in structural equation modelling (SEM). Altogether, 462 valid responses were collected from an oil and gas company in UAE. Four out of five KMPs have a significant relationship with OE. Also, ICT has been found to moderate the relationship between KMPs and OE. One KMP has shown an insignificant relationship with OE. The results also show that the standardised coefficients of these paths and the loadings of the indicators on their factors are all significant. A validity test shows strong evidence of the joint impact of KMPs and ICT on OE with the possible moderating impact of ICT on OE. One of the research limitations is the type of organisation under study. Future studies may include other industries such as manufacturing and construction.