Knowledge management, problem solving and performance in top Italian firms

The purpose of this paper is to empirically test the link among knowledge management practices, problem solving processes, and organizational performance. Design/methodology/approach: This study uses survey data from 112 leading Italian companies. To test the structural relations of the research model we used the partial least square (PLS) method. Findings: Results show a strong relationship between knowledge management practices and intermediate activities of creative problem solving and problem solving speed. In addition, creative problem solving has a direct impact on both organizational and financial performances whereas problem solving speed has a direct effect only on financial performance. Research limitations/implications The focus on top Italian firms limits the generalizability of results. Practical implications: This study provides empirical evidence of the importance of knowledge management practices for problem solving activities and firm’s performance. Originality/value: The present paper fills an important gap in the extant literature by conceptualizing and empirically testing the relationship among knowledge management, problem solving processes (creative problem solving and problem solving speed) and firm performance. This study is the first ever to study these relationships within the Italian context