This paper analyses the level of knowledge management implementation in organizations and the impact of control variables on knowledge management dimensions. In addition, the importance of knowledge management influence on the competitive sustainability of an organization is addressed. The idea of the research is to highlight key factors that affect the effectiveness and efficiency of knowledge management applications in transition conditions. Data for the study were obtained by surveying 520 respondents—managers of all levels from manufacturing enterprises in Serbia. A t-test was conducted in several variations. More precisely, the t-test analysis was conducted on the average assessments of knowledge management dimensions and with specific control variables. The findings indicate that knowledge management dimensions differ in domestic enterprises and foreign enterprises as well as that their impact differs across organizational levels. Financial performance (profitability, sales growth, asset growth, market share, competitive position in a specific industry, productivity, and salaries) was found to be a reliable indicator of knowledge management success. It can be concluded that knowledge management dimensions have an important role in transition countries, and it is evident that effective knowledge management is imperative for the competitive sustainability of an organization.

The objective of this study was to determine the relationships between quality management dimensions and organisational performance in uncertain markets (transition conditions). The study was carried out in Serbia, using a sample of 160 certified organisations. The study was based on subjective estimates provided by quality managers. Structural equation modelling was used to examine the relationships between the dimensions of quality management and organisational performance. The results of this study indicate that the shortcomings of organisations’ top managements probably significantly affect other elements of the model. The reasons for that may be a poor organisational culture and the influence of ‘climate’. These assumptions and the results of the study point to the conclusion that the effects of ISO 9000 application in the considered conditions are arguable. The paper suggests considering ‘climate’ conditions in further research in this field. According to the findings, systematic improvement of organisational performance should include improving managers’ commitment to quality management, effective quality planning, and organisational learning.

In this paper the impact and predictive effects of knowledge management on financial performance are analysed. The research also includes an analysis of the moderating effects of two moderators (National Origin and Enterprise Size) and their relationship. The data was gathered by interviewing 520 managers from manufacturing companies operating in Serbia. The most important conclusions of the research are: 1. High levels of knowledge management positively influence business performance, quality and competitiveness. 2. Financial performance is mainly influenced by the dimensions connected to the effects of knowledge management regarding its implementation and protection and the acquisition of competitive advantages. 3. Knowledge management strongly influences the market aspects of business, but also the increase of fixed assets. 4. Knowledge management has a slightly greater impact on financial performance in foreign enterprises (operating in Serbia) compared to domestic (Serbian) enterprises. The situation is similar when comparing medium and large enterprises (a higher impact) with small enterprises (a smaller impact). 5. The greatest effects are achieved when an effective organizational structure is in place, when the organization protects its knowledge, when it manages to materialize the knowledge gathered in the form of the efficient application of knowledge. Keyword : knowledge management, intellectual capital, financial performance, national origin of the enterprise, enterprises size, Serbia