Knowledge Management Practices and Organizational Learning Have Positive Impacts on Organizational Performance of State-Owned Enterprises in Indonesia

Abstract

The performance of state-owned enterprises (SOEs) is rated as an important component of the economic development in Indonesia. Indonesian government has set strategic steps to fix the financial value of the SOEs. Knowledge management is one of strategic implementation of SOEs. The result of the researcher’s analysis reveals that the implementation of the knowledge management does not always give a positive contribution to the performance of the SOEs. Accordingly, it is important to conduct a research related to the efforts taken in implementing knowledge management and its impacts on organizational performance of the SOEs. The main objective of this study is to figure out the relationship between knowledge management and organizational performance by involving organizational learning as the intervening variable. This study involves six state-owned enterprises in Indonesia. The total number of respondents successfully examined were 189 employees of the six state-owned enterprises. The data was processed by SEM technique using AMOS 22 Software and the result shows that knowledge management has a significant impact by 45% toward organizational performance, and organizational learning influences significantly by 44% on organizational performance.

DOI: 10.5901/mjss.2017.v8n3p281