Information technology, knowledge management and human resource management Investigating mutual interactions towards better organizational performance

Purpose - Drawing on dynamic capability view, this study aims to offer a conceptual framework to clarify the nature of the effects of firm's information technology (IT) capability, knowledge management (KM) capability and human resource management (HRM) capability on organizational business performance. IT is the driver that changes all aspects of doing business in the digital era, while both knowledge and human resources (HR) are being increasingly regarded as key levers of competitive advantage in today's global, dynamic and complex business environment. Design/methodology/approach - The survey methodology was used to collect data. To clarify the relationships between IT capability, KM capability and organizational business performance, the qualitative literature review has been conducted. This review has revealed the three structural models presenting possible interactions between observed constructs. Confirmatory factor analysis has been used for the evaluation of proposed measurement models while structural equation modeling has been used for structural models' assessments and hypotheses testing. Findings - IT capability enhances HRM capability which enhances KM capability. As a result, KM capability together with IT capability enhances organizational business performance. In addition, there is an interaction effect of KM capability and HRM capability on business performance. Research limitations/implications - First, the sample is based on the emerging economy firms. Second, the use of a self-rating performance measure may be a limitation of the study. Third, the data are not completely normally distributed. Fourth, specificities of different industries were not the subject of analysis in this paper. This should be considered in the interpretation and understanding of the results. Practical implications - From managerial point of view, the paper indicates what managers can do to master their dynamic capabilities, especially those relevant to the business in the digital era. Firms are urged to develop and improve their capabilities to face dynamic environment and intense competition, as well as business globalization. However, to improve certain capability, firms should develop others as well because of their interconnectedness. Originality/value - The main academic contribution of this study is reflected through the development of the integrative model which is aimed at identifying the interrelationships among IT, KM, HRM and business performance. The results indicate the importance of observing interconnections between the firms' various capabilities to verify the premise of the dynamic capability view. This paper identified relationships between most prominent firm's resources for the digital era: knowledge, HR and IT. The results show causes and effects of relationships between capabilities related to these resources.