Purpose This paper aims to provide a comprehensive academic literature review on the relationship between knowledge management, knowledge transfer and organizational performance in a specific subset of the creative industry, i.e. arts and crafts organizations. Furthermore, this paper analyzes how knowledge management and transfer within arts and crafts organizations help increase performance and enhance the value of the activity of the so-called knowledge workers (i.e. craftsmen), who are the real knowledge owners in the process of value creation. Design/methodology/approach The literature review follows the model suggested by Vom Brocke et al. (2009). The review follows a five-phase approach so as to be systematic, transparent and replicable. Academic contributions published over two periods are taken into consideration. The first period covers the years 1990-2000, when the concepts of creative industry and knowledge-based economy were developed. The second period covers the years 2000-2016, when scholars started to investigate how to effectively transfer knowledge (very often in the form of tacit knowledge) retained by master craftsmen in arts and crafts organizations and the critical role played by craftsmen in the performance of such organizations. Findings Three main issues have emerged: how arts and crafts organizations manage and transfer knowledge internally; the effects of these activities on organizational performance; and the prominent role of craftsmen. The literature review shows how in arts and crafts organizations there is a considerable link between the concepts of performance" and "tacit knowledge", even though addressing such link is somehow hard to realize, for several reasons discussed in the paper. The measurement of performance in arts and crafts organizations has become an area of academic investigation only when both the role of knowledge management and transfer and the role of knowledge workers (i.e., craftsmen) have become evident for obtaining a competitive advantage. Research limitations/implications This paper has been an attempt to organize existing studies on knowledge management and transfer and to investigate the relationship existing between knowledge and performance in arts and crafts organizations. Nevertheless, the relationship between knowledge and performance is yet to be explored, as well as the development of techniques for measuring arts and crafts organizations' performance effectively. The present contribution calls for a systematic reflection on how the transfer of traditional craftsmen's skills impacts organizational performances in the long run. The definition and implementation of new performance evaluations criteria tailored to enhance the tacit knowledge of craftsmen as a real source of differentiation and competitive advantage for the arts and crafts organizations is somehow still missing. Practical implications By pursuing its objectives, the present contribution aims to represent a step toward enabling arts and crafts organizations to play a vital role in the modern society in a more structured way. This would help to build awareness of the potential of arts and crafts organizations for promoting economic growth, proposing a value proposition different from the one dictated by the globalization and by the triumph of product standardization and mass production. Originality/value Analyzing the knowledge management and transfer within arts and crafts organizations with a historical perspective, it appears that the recognition in academic literature of the centrality of knowledge management and transfer within arts and crafts organizations is only recent (i.e. from 2011 onward). Indeed, for approximately 20 years (i.e. 1990-2010), knowledge has been constantly related to technological paradigms and standardized results, with very little research and debate on craftsmanship and the role of craftsmen. Nevertheless, the research shows that over the years, the focus on knowledge in arts and crafts organizations and knowledge transfer has become progressively more detailed and precise: some authors have studied the role of craftsmen in the knowledge economy according to a historical perspective, while some others have analyzed different types of knowledge more thoroughly. For example, Sveiby (1997, 1996), analyzing the concept of "knowing talent" and "tradition", outlines a more prominent role of craftsmen in the knowledge economy and explain how, in sectors with a strong traditional background, the transfer of tacit knowledge is a meaningful challenge for many organizations.
