The Impact of Knowledge Management Processes on Business Processes as the Foundation of a Process-Based Organizational Structure

Within the modern business environment, the role of knowledge is becoming increasingly important, especially with the emergence and development of the knowledge economy, which has replaced the industrial economy. Thus, knowledge becomes a key resource on which a company’s operations depend. By applying knowledge as a strategic resource, companies shape an appropriate organizational structure. The main objective of this paper is to determine the impact of knowledge management processes on the performance of business processes as the foundation of a process-oriented organizational structure in medium and large Bosnian-Herzegovinian (hereinafter B&H) companies operating in knowledge-based industries. To achieve this objective, a non-parametric Kruskal–Wallis test and multiple regression analysis were applied. The research results showed that knowledge management processes indeed affect the performance of business processes that form the foundation of a process-based organizational structure. The value of this paper lies in the fact that knowledge is increasingly being applied for practical purposes with the goal of improving business processes and, consequently, overall business performance.