The Impact of Knowledge Management on Employee Performance in Knowledge Process Outsourcing Companies in Sri Lanka

Abstract In the modern business world, organizations strive for competitive advantage. This study examines the impact of knowledge acquisition, knowledge creation, knowledge capture and storage, knowledge sharing, and knowledge application on employee performance in Knowledge Process Outsourcing (KPO) companies in Sri Lanka. The study adopted a quantitative approach, employing a structured online questionnaire distributed amongst the KPO industry employees. The data is analyzed using statistical methods such as correlation and multiple regression. According to the findings, knowledge management has a significant impact on employee performance in KPO companies in Sri Lanka. This result indicates a significant relationship between the selected knowledge management components - acquisition, creation, capture and storage, sharing, application and employee performance. However, challenges such as a lack of comprehensive knowledge management strategies, limited employee engagement, and cultural barriers are identified. The findings prove the need for KPO organizations in Sri Lanka to prioritize knowledge management strategies. The study contributes to the literature on knowledge management in the KPO industry.