Non-governmental organizations need to manage their knowledge similarly to for-profit organizations. Although for effective KM a technology, people, task, and structure – integrated approach is required. However, there is a strong imperative to develop people capabilities within Non-governmental organizations in order to meet the challenges of economic, social and environmental development. Therefore, in this study we have particularly examined the impact of human resources on KM effectiveness in the nonprofit industry. The study deals with three major research questions: (1) Does the level of human resources’ knowledge have a positive influence on a Non-governmental organization’s KM capabilities? (2) Does a Non-governmental organization’s KM capability positively influence its knowledge processing capability? (3) Does a Non-governmental organization’s knowledge processing capability positively influence its performance? Further, the study aims to investigate human resource management related issues in KM implementation in nonprofit industry, and attempts to provide appropriate solutions. Finally, the study proposed a KM model for nonprofit industry.

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