| Article ID: | iaor200988 |
| Country: | United States |
| Volume: | 34 |
| Issue: | 3 |
| Start Page Number: | 541 |
| End Page Number: | 568 |
| Publication Date: | Jul 2004 |
| Journal: | Decision Sciences |
| Authors: | Drge Cornelia, Germain Richard, Claycomb Cindy |
| Keywords: | performance, decision theory |
This research examines the links among four firm context variables, knowledge, and financial performance. Adopting a knowledge-based, contingency view of the firm and assuming that strategy's locus is knowledge creation and application, we hypothesize that knowledge completely mediates the effects of context on performance. The results from analyzing 208 manufacturers found a positive relationship between applied knowledge and financial performance, but none between knowledge creation and performance.