Profiting from Knowledge Management: The Impact of Time and Experience

Although many organizations are implementing knowledge management systems (KMS), there is little empirical evidence about whether KMS use can improve individual performance, and how time and experience influence the value derived from KMS use. Using hierarchical linear modeling (HLM) statistical analysis, we examined the impact of using a codification‐based KMS on the sales performance of 2,154 sales representatives in a pharmaceutical firm over a 24‐month period. We found that KMS had significant positive impacts on individual performance and that these performance benefits grew over time. Moreover, experience moderated the relationship between KMS use and individual performance. Knowledge workers with more experience were able to more quickly absorb and apply the knowledge from the KMS than were those with less experience, who took longer to benefit from KMS use. However, over time experience played a diminishing role in leveraging performance gains from KMS use, and knowledge workers with less experience eventually derived similar performance benefits as those of their more experienced counterparts.