Evaluation of perceived benefits and employee satisfaction through knowledge management practices

Purpose This study aims to identify the key contributing factors of knowledge management (KM) practices with respect to an employee benefit. The research is designed to gain insight into the KM practices of Indian information technology (IT) firms and evaluate its effects on employee perceived benefit (EPB) and employee satisfaction (ES). Design/methodology/approach This study focuses on the cause and effect relationship between the variables. In this research study, a structured questionnaire is administered and accumulated responses from executives, software developers and knowledge managers from five IT firms with the help of google form. The sample size was 339 for this study. Confirmatory factor analysis and partial least square (PLS)-structural equation modeling have been used to analyze the data with the help of SMART-PLS software. Findings The well-fitted model describes the importance of KM practices with respect to increasing employee benefit and satisfaction. The hypothesized model is empirically investigated and it is also supported by the analysis. The KM practices have significant effects on EPBs. Employee benefits have a significant effect on ES. The result shows that the benefits of KM practices are more intended toward the sources of motivation where they can increase their capability with the help of KM practices. Research limitations/implications Benefit leads to the motivation and satisfaction of employees. The work itself can be a highly motivating dimension with the help of proper KM practices. The managers’ prime responsibility is to focus on collaborative work with regularizing the exchange of knowledge, where new knowledge can be created and, do better for the organization. Originality/value This research study offers a new direction of motivation to work. The employee can be highly motivated if he can be benefited from the work itself. This study gives an approach to satisfy the employee with the help of KM practices. Perceived benefit is considered as an essential element for this study.