Knowledge Management as a Determinant of Social Well-being: A Cognitive-based Composite Indicator

Abstract

Knowledge management is a central element in contemporary processes of transformation across organizations, territories, and societies. Understanding its relationship with residents’ quality of life can contribute to progress toward models of sustainable human development. At the organizational level, knowledge management plays a pivotal role in enhancing the work environment by fostering autonomy, motivation, and creativity, as well as by promoting the development of employees’ skills and capabilities. These factors are strongly associated with key indicators of work-related and social quality of life. From a social perspective, knowledge management promotes more equitable access to educational, health, and labour opportunities, thereby reducing structural inequalities and strengthening civic participation, with positive effects on social well-being. Moreover, the consolidation of knowledge-based social ecosystems enhances collective resilience to complex challenges such as demographic ageing, climate change, and territorial inequalities, by improving communities’ adaptive and responsive capacities. In this study, we develop a methodological approach to measure individuals’ levels of knowledge using Likert-scale data obtained from a survey of Spanish citizens, which yielded a total of 4,147 validated responses. Specifically, we propose an individual knowledge indicator constructed using Item Response Theory (IRT) models and defined through three dimensions related to applied cognitive capacities: structural knowledge derived from formal education; digital competencies as an expression of applied knowledge; and access to and use of information as a measure of autonomy and informational capacity. Moreover, we examine the relationship between knowledge management and quality of life, measured from a subjective perspective. The main results highlight the importance of individual knowledge as a determinant of well‑being and reveal that the quality of life dimensions most strongly influenced by individual knowledge are the work environment, educational opportunities, and economic situation.