This study aims to discover how customer knowledge management (CKM) enhances organizational performance. For this purpose, a process‐oriented framework is developed to examine the relationship among organizational knowledge infrastructure, CKM processes, CKM capabilities, and organizational performance. Organizational knowledge infrastructure includes both “customer relationship management infrastructure” and “knowledge management infrastructures.” The balanced scorecard dimensions are used for measuring organizational performance. Based on process‐oriented approach, infrastructures enhance CKM capabilities through CKM processes and consequently improve firm performance. The research framework is evaluated by a questionnaire survey in 51 software companies in Iran. The empirical work indicated that constructed measures demonstrate the key psychometric properties including reliability and validity. The findings also demonstrate mediating role of CKM processes and CKM capabilities on the relationship between CKM and organizational performance. It means that firms with improved CKM process capabilities enjoy better organizational performance.
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