Abstract
Many managers have recognized the importance of knowledge management in supporting and managing an organization. They agree that knowledge is a fundamental factor behind an enterprise’s success. However, some scholars have revealed that community of practice is a critical aspect and component for implementing knowledge management in an organization because it helps to facilitate sharing or exchanging of collected knowledge and improve the organizational performance. In this study, we used data collected from the manufacturing and service firms in Taiwan to verify the relationship between communities of practice, social capital and organizational performance. Our results showed that the impact of social capital on organizational performance is not significant, but communities of practice have a significant positive impact on social capital and organizational performance. So, the implementation of communities of practice not only establish the friendships and relationships that are often more enduring for social capital building but also foster learning, sharing, and new ideas that benefit organizations.