The effect of knowledge management practices on firm performance

Purpose – This research proposes to study the connection between knowledge management practices and firm performance. Design/methodology/approach – Theoretical relations are tested through an empirical study carried out on 222 Spanish firms in the biotechnology and telecommunications industries. Findings – This paper shows how the firms that adopt knowledge management practices obtain better results than their competitors. Research limitations/implications – The subject of principles has not been considered a dimension of knowledge management. New avenues of inquiry are opened considering this dimension. Practical implications – It determines practices that have a positive incidence on firm performance. Originality/value – The conceptualization of knowledge management practices represents a theoretical innovation. This scale can be used in other knowledge‐intensive industries. The paper concludes that these practices have a positive incidence on firm performance.