The Impact of KMS Success on Corporate Productivity: A Case Study at an IT Services Company

As a class in IS that manage organizational knowledge, the positive contribution of KMS success to business performance has been published by many researcher. However, there are reports that casted a doubt on such a claim. This study is one of another exploration on the subject that aimed at investigating correlation between a company's KMS success level and business performance represented by productivity measurement. The company under this study is a publicly-listed company in the IT services industry which have 27 branch offices and over than 70 service point throughout the country. The KMS success level is measured using the KMS success model provide by Wu and Wang based on DeLone and McLean IS success model. We using the Spearman Rank Correlation Test as a non-parametric statistical hypothesis testing method. A nagative correlation was found between KMS success level and total factor productivity, although there is a positive correlation to profit-based productivity measure. By investigating the result, we discovered an interesting observation that might explain why some studies did not find positive correlation between KMS success and business performance measures. In this case, we found that there was a time lag between the KMS success level improvement and its impact to productivity level of the company.