Knowledge resource quality, knowledge management process capability, and effectiveness – a simulation approach

This paper analyses the importance of knowledge resource quality in the context of a knowledge management environment in Information Technology sector. The exogenous variable of this study is knowledge resource quality, and the endogenous variables are knowledge management process capability and knowledge management effectiveness. This research is conducted in the context of information technology sector in India. System Dynamics approach is used for this research which consists of five different steps of problem identification, system conceptualization, model formulation, simulation & validation, and policy analysis & improvement. Data for this research was collected through a survey questionnaire. The survey was conducted in large Indian IT companies, and the data was collected from 423 knowledge workers of 63 IT companies in India. Multiple linear regression equations were developed between the independent and dependent variables of the study. These equations were used to develop the stock and flow diagram, and the model was simulated under four different scenarios. The results highlight the importance and leverage provided by knowledge resource quality for improving KM process capability and effectiveness. Managerial implications are provided to help IT managers to take strategic and operational decisions for improving KM performance.