Keywords

1 Introduction

Organisations may face many challenges to enhance their productivity efficiently and effectively in such a rapidly changing environment of digitization. Due to this dynamic change organisations adopt digital sophistication that may include many digital tools to generate, collect, process, disseminate and store the vast amount of data in a well-organized and logical system. However, without the effective use of digital knowledge management practices, organisations may struggle to operationalise the knowledge assets into actionable insights that lead to innovation, productivity and low cost, hence overall performance.

Digital knowledge management (DKM) is a multi-dimensional process that involves the creation, sharing, storage and utilisation of knowledge assets through digital technology (Alavi and Leidner 2001). Digital knowledge management (DKM) is identified as one of the essential processes for many organisations to achieve and sustain a competitive advantage in a technology-reforming environment (Alavi and Tiwana 2003). Digital knowledge management the productivity of employees, which leads to overall organisational learning as well as customer satisfaction to boost the organisational performance (Cegarra-Navarro et al. 2016; Dwivedi et al. 2019). All though digital knowledge management is becoming one of the vital factor performance of organisations, there is still a lack of empirical research to show the relationship between digital knowledge Management (DKM) and Organisational performance (Li and Wang 2018). Though few studies have examined the relationship between digital knowledge management practices and other outcomes such as innovation or Information sharing, a thorough understanding of digital knowledge management practices on financial and non-financial outcomes is necessary to evaluate. This study particularly will examine the relationship of digital knowledge management comprising digital knowledge sharing, digital knowledge sharing and Organisation learning with the financial outcomes consisting of return on Investment, profitability revenue growth and non-financial outcomes that include employee satisfaction and innovation.

Overall, the significance of this study lies and its capacity to educate business organisations, and policymakers about the importance of digital knowledge management in this era of digitisation and to offer recommendations on how to effectively use digital knowledge management practices to improve overall organisational performance.

1.1 Problem Statement

Organisations massively rely on digital technology to manage their knowledge assets in the technologically advanced era. Digital knowledge management has emerged as one of the most important tools to create, store, disseminate, process, share as well as learn via different digital techniques. Digital knowledge sharing has been also identified as a medium to learn for enhancing organizational performance by fostering innovation, increasing employee productivity, and boosting customer satisfaction (Cegarra-Navarro et al. 2016; Dwivedi et al. 2019).

Despite the extensive benefits of digital knowledge management (DKM), many organizations scuffle to gain maximum productivity and manage knowledge assets in a competitive environment of digitalization. A survey by APQC (2019) found that only 39% of surveyed organizations reported that they were effective at managing their digital knowledge. This demonstrates that many organisations may not be aiming to make the most of Digital knowledge management’s (DKM) capacity to improve overall performance. Moreover, while there is growing interest in DKM, there is still a lack of empirical research on the impact of DKM on organizational performance. While some studies have examined the relationship between DKM and specific outcomes, such as knowledge creation and knowledge sharing, there is a need for a comprehensive understanding of the impact of DKM on financial and non-financial outcomes.

This study addresses the lack of empirical research particularly in the field of digital knowledge management more importantly the impact of digital knowledge creation, digital knowledge sharing and organizational learning on organizational performance in terms of financial and non-financial outcomes. The studies also highlight the prominent gaps by examining the relationship between digital knowledge management and organizational performance and providing insight into how organizations can implement digital practices to improve overall organizational performance.

1.2 Research Questions

  1. 1.

    How does digital knowledge creation impact organisational financial and non-financial performance?

2 Literature Review

2.1 Digital Knowledge Management

Digital knowledge management (DKM) has emerged as a crucial process for organizations to create, store, distribute, and utilize their knowledge assets through digital technology. It may involve a range of activities including digital knowledge creation, digital knowledge sharing and organizational learning that are enabled by digital technology (Dwivedi et al. 2019). The main objective of digital knowledge management (DKM) is to enhance organizational performance that ultimately improves employee productivity, promotes innovation facilitates organizational learning and enhances customer satisfaction (Cegarra-Navarro et al. 2016).

2.2 Digital Knowledge Creation

Digital knowledge creation describes the process of generating new knowledge or ideas using digital tools and technologies but involves the use of various digital platforms such as social media forums, blogs, wikis, and application portals that help to generate and disseminate knowledge. Digital knowledge creation may also involve the use of data analytics and machine learning algorithms to analyze and extract information from the data (Dwivedi et al. 2019).

The ability of an organisation to successfully collect and analyse information, which ultimately results in the development of new knowledge, is what we mean when we talk about an organization’s capacity for knowledge generation (Nonaka 1994; Nonaka, Byosiere, Borucki, and Konno 1994). KMS processes are responsible for the generation of new knowledge inside organisations. These processes take previously implicit information and make it explicit on the levels of the individual, the group, the organisation, and the industry. Here, everything from the level of a person to the level of interaction between institutions is feasible. The theory that can best be summed up as the driving force behind Nonaka’s study is that the tacit-explicit axis may be used to classify the four most common methods of creating new knowledge. These shifts may also be described using terms like socialisation, combination, externalisation, and internalisation. The term “socialisation” refers to the process by which tacit information may be transformed into many new kinds of tacit knowledge via contact with other people. This process is sometimes referred to as “information exchange,” another word that is occasionally used to describe it (Nahapiet and Ghoshal 1998). People often gain tacit knowledge via social techniques such as apprenticeship, teamwork, and group brainstorming sessions because of the nature of the topic at hand.

On the other hand, externalisation is the process of making something that was previously only known to oneself implicit so that it may be shared with other people (Nonaka 1994). For businesses to reap the benefits of reuse economics, the information that has been gathered via routines or processes that are carried out often should be shared, rather than the knowledge that has been garnered through infrequent occurrences (Zollo and Winter 2002). On the other hand, the processes of combination and internalization explain how new information may be generated from explicit knowledge that already exists. Both approaches have the potential to be useful strategies for combining and preserving data that was gathered in the past.

2.3 Digital Knowledge Sharing

Digital knowledge sharing is also defined as a procedure of disseminating knowledge using various digital technologies through digital tools it is a process where the knowledge is shared as an asset among different employees in various fields as well as with external stakeholders using different digital platforms that may include intranets, online forums, social media internal portals, dashboards etc. However, to use digital knowledge sharing in the most appropriate way, we should also have strategies that may involve the use of digital tools such as collaborative workspaces, webinars, online meetings, video conferences, the discussion threads to maximize the benefits of knowledge exchange. (Dwivedi et al. 2019).

Knowledge management is the strategy of preserving crucial data and skill sets within an organization or other types of external organisations or stakeholders that are connected directly or indirectly with the organization. When it comes to managing one’s knowledge, a variety of procedures can be applied, such as methods to locate, use, document, and share data. A significant amount of documentation is required for the process of “capturing” information, which lays a focus on transforming tacit knowledge into explicit understanding as well as the flow of knowledge from externalization to internalisation (Bento et al. 2014). The listing or documenting of best practices is one way that is used often in the process of gathering or sharing the information that workers are prepared to practice getting the maximum benefits of digital knowledge sharing. A written record of what was learned is another instrument, document or report that may be used in the process of disseminating the message (Tallon et al. 2019).

A system that is viewed as simple to use and easy to handle is necessary for successful information sharing. Additionally, workers need to be eager to engage in the information-sharing process, and they need to be incentivized to do so (Shen et al. 2015). Research and evaluations on the construction of knowledge-sharing systems, as well as assessments of systems that are already in place, are often carried out in information technology firms or organizations where the commonplace use of computers is the case. This leads one to believe that not a great number of studies have been conducted to establish the usefulness of knowledge-sharing systems in different settings, especially in situations in which information technology systems have not been employed extensively inside the organization to fulfil tasks (Saldanha et al. 2017). It has been discovered that digital knowledge sharing has a positive effect on organizational learning and performance. According to a study conducted by Bhatti and Qureshi (2017), digital knowledge sharing positively affected organizational learning in Pakistani companies.

2.4 Organizational Learning

The topic of organizational learning has been the focus of a substantial amount of study, and the results consistently indicate a strong relationship between the two ideas and the accomplishment of objectives by businesses that apply them. The research was carried out to determine the nature of the connection that exists between organizational learning and the outcomes of financial analysis (Vizano et al. 2020). Their research led them to conclude not only that organizational learning had an effect that was directly related to the performance of businesses, but also that it provided some evidence that there may be indirect connections between the two.

Organisational learning not only had an impact that was directly tied to Ellinger’s performance after conducting their analysis but as a result, they and several other co-authors released an article in 2002 stating “The Relationship between the Learning Organization Concept and Enterprises’ Financial Performance: An Empirical Assessment.” In this article, the researchers investigated the connection between organisational learning and the financial performance of businesses. According to what they discovered, there is a considerable correlation between the learning that occurs inside an organisation and how well it performs in terms of its bottom line. Gao et al. (2015) delve further, highlighting the transformative effect of digital knowledge-sharing platforms. These platforms, by fostering collaboration and innovation among employees, expedite decision-making processes and enhance operational efficiency. These enhancements naturally extend to financial gains, reflecting the virtuous cycle between digital knowledge management and financial performance.

2.5 Organizational Performance

Richard et al. (2009), describe it as “the actual output or results of an organization as measured against its intended outputs (or goals and objectives). It encompasses the outputs, outcomes, and impacts of an organization as well as its efficiency, effectiveness, and competitiveness. The financial landscape remained a focal point for assessment, as highlighted by Cunha et al. (2011). They emphasized the significance of financial ratios, such as return on assets (ROA) and return on equity (ROE), as vital indicators of an organization’s financial health and operational efficiency. These financial metrics provided stakeholders with a lens into an organization’s efficiency in utilizing its resources. In the pursuit of excellence, organizations are increasingly harnessing the potential of digital knowledge management systems. Chua et al. (2012) emphasize how these systems can elevate financial performance. Their study reveals a positive correlation between effective digital knowledge management and superior financial metrics, with organizations adeptly leveraging digital platforms witnessing heightened revenue growth and profitability.

Amid this evolving landscape, the role of non-financial indicators gained prominence. Chowdhury and Fang (2014) delved into the profound influence of organizational culture on performance outcomes. The connection between a positive organizational culture, employee satisfaction, and innovation emphasized the intangible yet impactful aspects of performance. García-Sánchez and García-Morales (2016) added another layer by exploring the significance of digital knowledge management in driving both financial and non-financial outcomes, highlighting its role as a catalyst for growth and adaptability.

Creating new information, spreading existing knowledge, and capitalizing on the experiences of others are all activities that will need open communication lines, cooperation, and collaboration. For companies to earn the confidence of their staff members, certain actions, such as supplying them consistently with information that is both correct and up to date, are required (Zak 2007). In the pursuit of excellence, organizations are increasingly harnessing the potential of digital knowledge management systems. Chua et al. (2012) emphasize how these systems can elevate financial performance. Their study reveals a positive correlation between effective digital knowledge management and superior financial metrics, with organizations adeptly leveraging digital platforms witnessing heightened revenue growth and profitability. Alavi and Leidner (2001) unearth the power of digital platforms in nurturing employee engagement. By offering unfettered access to pertinent information, these platforms cultivate job satisfaction, motivation, and overall engagement, ultimately fostering a more dedicated workforce.

As the literature converges, a comprehensive picture emerges digital knowledge management is a catalyst for holistic organizational advancement. Becerra-Fernandez et al. (2018) provide a clarion call for aligning digital initiatives with organizational objectives, ensuring that knowledge management initiatives contribute directly to improved performance outcomes.

3 Conceptual Framework

Digital knowledge management comprises three main components: digital knowledge creation, digital knowledge sharing, and organizational learning. Digital knowledge creation involves using technology to create new knowledge that is accessible and shareable within the organization. Organizational learning is the act of obtaining and using information within the organisations, whereas digital knowledge sharing refers to the process of exchanging knowledge among employees using digital platforms. The results of this study emphasise the significance of digital knowledge management in organisational success. Organizations can improve their non-financial outcomes, such as customer happiness, employee satisfaction, and social responsibility, as well as their financial outcomes, such as revenue and profitability, by effectively developing, sharing, and exploiting digital knowledge. The findings of this study show that for businesses to remain competitive and achieve sustainable performance in the present business environment, they must invest in digital knowledge management methods and leverage digital technology. For instance, the development of new products or services might result from the creation of digital knowledge, which can boost sales and profitability. Customer satisfaction can rise as a result of improved employee productivity and customer service through digital information exchange. Along with organisational learning, businesses may perform better in their social and environmental responsibility while adapting to changing market situations.

According to the conceptual framework, digital knowledge management can significantly improve organisational performance (Fig. 1).

Fig. 1.
figure 1

The Diagrammatical representation of the conceptual framework

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4 Conclusion

This study specifically focused on financial and non-financial outcomes while examining the influence of digital information management on organisational performance. The importance of digital knowledge generation, digital knowledge sharing, and organisational learning in organisational effectiveness was highlighted in the study of pertinent literature. Investigating the relationships between digital knowledge management and both financial and non-financial results was the goal of the study questions. The conceptual framework and available literature imply that effective digital knowledge management strategies have the potential to enhance organisational performance. Digital knowledge sharing makes it easier for staff to share information, which improves output, client satisfaction, and non-financial results. Digital knowledge management facilitates organisational learning, which aids in change management and performance enhancement. This study advances knowledge about how businesses might use digital technology to improve performance by examining the connections between digital knowledge management and financial and non-financial outcomes. The study’s conclusions can be very helpful to businesses looking to improve their digital knowledge management procedures. It’s crucial to recognise the limits of this study, though. Further empirical research is required to confirm the links indicated in this study, which is mostly based on current literature and conceptual frameworks.

The importance of digital knowledge management in enhancing organisational performance is highlighted by this study’s result. Organizations can improve their non-financial results, such as customer happiness, employee satisfaction, and social responsibility, as well as their financial outcomes, such as revenue and profitability, by effectively developing, sharing, and exploiting digital knowledge. The results of this study highlight the necessity for firms to make investments in digital knowledge management strategies and use digital technologies in order to maintain competitiveness and achieve sustainable performance in the current business environment.