Knowledge management is an important weapon for sustaining competitive advantage and improving performance. Knowledge management (KM) enable organizations to enhance their performance and competitiveness. The aim of this study is to examine the effect of knowledge management (Infrastructure capability, processes capability and knowledge management dimension) mediated by competitive advantage and moderated by government policies on organizational performance. The specific objectives are to

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... igate the impact of knowledge processing capability on organizational performance, to analyse the impact of infrastructure capability on organizational performance, to find out the effect of knowledge management processes on organizational performance, to determine the moderating effect of government policies on the relationship between knowledge management and organizational performance and finally to establish the mediating effect of competitive advantage on the relationship between KM and organizational performance. Multiple regression analysis will be used for data analysis. The study is grounded on social exchange theory which provides in-depth information relevant to knowledge management. In conclusion, other researchers show that there is a significant positive statistical relationship between knowledge management and organizational performance of manufacturing sector. Recommendation is that future research should focus on extending KM study in other sectors to support generalisation of findings in all sectors.