Roshayani Arshad, Rina Fadhilah Ismail, Hamizah Abdul Razak
Non-Profit Organisations (NPOs) are gradually playing a pivotal role in the economy of the country by delivering public goods and services towards society. However, NPOs are experiencing difficulties in addressing escalated social issues especially in the current pandemic situation. As NPOs compete for limited funding, the need to be perceived as accountable entities becomes even greater. In discharging their accountability, NPOs need to provide a basis for appropriate accountability through effective management of knowledge, which can help to portray their values, legitimise organisations, and appear to continue growth and health in their stakeholders’ eyes. To ensure optimisation of the knowledge in making substantive decisions, the management of NPOs must possess capabilities in managing and reporting their performance information to the relevant stakeholders. Therefore, it is crucial to assess relevant knowledge and skill to acquire, convert, and apply the acquired knowledge in order for them to use the performance information among NPOs’ management effectively. As staff capabilities are important to ensure only relevant and useful data is collected to produce useful information for effective decision making, this study aims to examine the relationship between the knowledge process capabilities and the use of performance information among NPOs in Malaysia. Through the lens of Knowledge-Based View theory (KBV), this study exploits how effective management of knowledge resource can stimulate performance information use for discharging NPOs accountability. A questionnaire-based survey is conducted to assess knowledge process capability among respondents of 60 NPOs. The findings indicate that knowledge application has a significant influence on the use of performance information. These relevant findings are likely to assist NPOs in strategising their knowledge management activities and enhance the use of performance information in decision making.