Leverage of Kowledge Management on Performance: Comparison of Three Models

Abstract. This study aims to clarify effect of knowledge management (KM) on organizational performance (OP) through innovation and intellectual capital (IC) as mediator. This research proposed 3 (three) alternative models that recommend different configuration from IC and innovation as intermediary. The method used is quantitative analysis, by stage of research literature studies to build models, and then compares predictive power from these models using Structural Equation Modeling (SEM) path modeling based on data collection from Indonesian public sector. The study found that all models respectively influenced performance, but according to empirical result, the third model which is positioning IC and innovation simultaneously as intermediary has the biggest predictive power on enhancement performance. It may help practitioners and academics to understand the importance of IC and innovation synchronously mediating role from intercourse between KM and OP (whether internal or external performance) especially in public field.Keywords: Knowledge management; Innovation; Intellectual capital; Organizational performance