Knowledge Management and Human Capital Management: An Approach to Sustainable Performance

Knowledge is increasingly becoming a catalyst for change and creativity in firms: enabling effective operational and strategic activities. Existing literature in knowledge management (KM), however, has focused mainly on generic outcomes derivable from KM applications. This paper examines the strategic relevance of KM in enhancing human capital management in firms. To achieve this objective we present a detailed literature review on the implications of KM on effective human capital development, and the consequences for a firm's ability to sustain competitive market position. We propose that firms that develop and apply strong KM culture would be able to achieve consistent high performance. In addition, when a firm is able perform better than competitors: such a firm would be able to achieve success. This paper could serve as a frame of reference for researchers, and could enable practitioners to gain better understanding of key requirements for maintaining competitive performance via effective integration of KM and human capital initiatives.