Communications of the Association for Information Systems


Knowledge management capability (KMC) represents an important link between IT and individual firm performance. We investigate this link in an interorganizational (IO) context—an increasingly important and yet substantially underresearched area. Based on reviewing and integrating the literature, we develop and test a comprehensive empirical conceptualization of KMC that includes knowledge creation, transfer, retention, and application. We collected survey data from supply management professionals at one partner firm (either customer or supplier) in an IO relationship. We tested our research hypotheses using structural equation modeling. We found that partner firms’ KMC was positively associated with IO performance. We also found that IO information technology (IOIT) infrastructure capabilities facilitated KMC through the strength of IO relational capability. Partner interdependence was positively associated with IO relational capability and with KMC. Taking a knowledge management (KM) perspective, our research shows that IT requires relational capability and KMC to bring performance gains to IO partnerships. These insights have theoretical importance for understanding IT-enabled knowledge management in IO settings and practical significance for firms to effectively use their IOIT infrastructure.