THE IMPACT OF KNOWLEDGE MANAGEMENT ON THE ECONOMIC INDICATORS OF THE COMPANIES

Abstract

This paper analyzes the impact of knowledge management on the organizational performance of compa- nies measured through previously defined economic indicators. Knowledge management in the company is observed through the factors that make up a knowledge management system, namely: business processes, people (employees), and information technology, while the same has been done for economic indicators through indicators of liquidity, indebtedness, activity, economic efficiency, and profitability. Knowledge management as a variable is described by ordinal data, while the business indicator variable is described by quantitative, real data. Research shows that most large companies have built-in elements of knowledge management, some medium-sized companies are involved in this process, and most small companies have not developed management strategies in which knowledge management exists as an important factor. The research also proves that there is a positive correlation between knowledge management and economic in- dicators, i.e., in other words, the research shows that knowledge management has a positive impact on reducing indebtedness and increasing liquidity, activity, economic efficiency, and profitability.