Nowadays, the development of knowledge management (KM) does play an important role in the concept of Customer Knowledge Management (CKM). This development shows the rapid change in all areas of life, due to the effects of globalization and the development of highly acclaimed KM. On the other hand, CKM is considered important, because its implementation benefits the field of operations and services, that can improve personal competence, maintain availability knowledge, innovation and product development. Therefore,
scholars regard CKM as a strategic resource for businesses to improve innovation, facilitate the detection of new market opportunities, and support long-term customer relationship management (CRM). However, literature suffers from a lack of understanding of customer knowledge’s role in improving the performance of organization. Thus, the purpose of the study is to investigate the impact of CKM on organizational performance (OP). This study uses a questionnaire and statistical analytical techniques (Structural Sequential Equation Model) to explore the effect of CKM on OP. The statistical population of this research includes 500 insurance companies in Malaysia. The sample size was estimated 258 people by using Krejcie and Morgan Morgan Table (1970) and stratified sampling method was used. Data collection tool is close ended questionnaire with Likert's five-option scale. Therefore, 516 questionnaires were distributed and 180 returned questionnaires were analyzed. Measurement model was analyzed to determine data validity and the hypotheses were tested using structural model. The findings showed that that CKM dimensions namely; Knowledge for customers (KfC), and Knowledge from Customers (KfrC) had a positive impact on the performance of organization and provides competitive advantages. However, knowledge about customers (KaC), indicated insignificant impact with OP. This study provides clear implications related to the theory and contributions to the literature related to CKM as well as in insurance industry. The study also provides invaluable insightfulness to various stakeholders including policy makers, institutional support and insurance agent about the importance of knowledge about customers (KaC), Knowledge for customers (KfC), and Knowledge from Customers (KfrC) in determining the performance of insurance industry. Hence, organizations should acquire valuable customer knowledge in order to enhance the relationship with customers, as well as enhance their performance.
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