Communities of practice and knowledge management systems: effects on knowledge management activities and innovation performance

We empirically analyze the effects of a company’s community of practice and knowledge management system on knowledge management activities and management performance. We gather data by administering surveys to large- and mid-sized companies in Seoul, Gyeonggi, and other regions of Korea. The company samples collected are statistically analyzed using methods: hierarchical analysis and structural equation modeling. First, the community of practice has a positive effect on the knowledge management system. Second, both community of practice and knowledge management system positively affect knowledge management activities, of which the latter has a greater effect. Third, both factors also positively impact innovation performance, of which community of practice has a greater effect. The knowledge management system is not statistically significant in the structural equation model. Fourth, knowledge management activities positively affect innovation performance. The findings highlight the importance of refining and developing knowledge-based processes to lead an entire organization to higher innovation performance.