Knowledge management drivers and organizational performance: a PLS-SEM and fsQCA approach

Abstract This paper aims to examine how key organizational factors—strategy, organizational culture, leadership, technology infrastructure, and trust—shape knowledge management (KM) practices and, in turn, influence organizational performance (OP) in a transition economy context. Focusing on Serbia, the research addresses a notable gap in KM literature related to transition economies characterized by institutional and structural specificities. To provide a more comprehensive understanding of studied relationships, the research integrates partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA), enabling the analysis of both linear effects and complex causal configurations. The findings confirm that all examined factors positively affect KM, while KM significantly enhances organizational performance. By combining PLS-SEM and fsQCA, the study reveals that KM is a necessary but not sufficient condition for high performance, identifying six organizational configurations through which KM contributes to superior outcomes. These results highlight the importance of aligning organizational elements to fully leverage KM as a strategic resource, particularly in developing and transition economies.