Strategic knowledge management, innovation and performance

► More than 300 companies are surveyed about the consequences of codification and personalisation strategies on innovation and performance. ► KM is found as a significant mechanism to enhance innovation and corporate performance. ► KM strategies indirectly (through an increase on innovation capability) impact on performance, thus reinforcing the total effect of KM strategies on performance. ► Both codification and personalisation strategies have a significant positive impact on financial results. Our aim is to shed light on the consequences of knowledge management (KM) strategies on firm's innovation and corporate performance. Organisations are not aware of the real implications that KM may have. Based on an empirical study consisted of 310 Spanish organisations and structural equations modelling, results show that both KM strategies (codification and personalisation) impacts on innovation and organisational performance directly and indirectly (through an increase on innovation capability). Also, findings demonstrate a different effect of KM strategies on diverse dimensions of organisational performance. Our conclusions may help academics and managers in designing KM strategic programs in order to achieve higher innovation, effectiveness, efficiency and profitability.