African Journal of Environmental Assessment and Management ISSN: 1436-7890 Volume 21 Issue 6 Year 2016 http://ajeam-ragee.com The Impact of Knowledge Management Processes on Agile Supply Chain (Case Study: Irankhodro Foundry Co.) Akbar Mohammad Lou 1,* , Jalal Rezaeenour 2 1 MSc. Information Technology Management, Mehralborz University, Tehran, Iran 2 Assistant professor, Department of Industrial Engineering, Faculty of Technology and Engineering, University of Qom ABSTRACT Knowledge and knowledge management is a major source of competition in each organization, so many companies believe that as soon as they can obtain and use their knowledge, they will be more successful in a competitive market. This can be carried out efficiently by systematic knowledge management processes. On the other hand, competition between companies has lost its importance and to provide the highest value to customers, competition between supply chains is approved. Therefore, this study aimed to investigate the effect of knowledge management processes on supply chain and main components of supply chain agility in Iran Khodro Foundry Co.; by a descriptive survey with hypothetical-deductive approach and with the help of 80 experts in the casting industry and the supply chain. Data collection was done by questionnaire and measurement reliability by Cornbrash’s alpha coefficient using SPSS software in which 0.9 results show that the questionnaire has the necessary reliability. The data analysis was done in two stages by structural equation modeling, confirmatory factor analysis and path analysis by Smart PLS software. The results of the structural model indicate that there is a significant positive relationship between knowledge management processes, an agile supply chain and principal components of agility of the supply chain (management of production costs, sensitivity to market, integration of processes, virtualization and web-based collaboration). Keywords: knowledge, knowledge management, knowledge management processes, agility, agile supply chain 1. INTRODUCTION In the modern business environment, competition has shifted from single organizations to supply chains and effective supply chain management (SCM) has become increasingly significant in securing competitive advantage and improving organizational performance. SCM has assumed a leading operations strategy position in both manufacturing and service industries and companies have seriously implemented SCM practices in their organizations over the past few years. Although there has been intense research interest in SCM, the understanding of the why and how some supply chains outperform others is still incomplete and little is known about the intangibles associated with supply chain performance.(Sangari, Hosnavi, & Zahedi, 2015). Since 1970s, due to the rapid development of high technology, especially in the fields of communications and computer, the pattern of global economic growth has changed fundamentally. Then knowledge became the most important alternative investment for money and physical funds (Lee, 2012). Therefore, knowledge management has become one of the main research topics around the world and it is considered a key tool to manage information, an strategic tool in management and an effective way to gain sustainable competitive advantages as well(Abadi, Feizi, Olfat & Far, 2012). Nonaka (2007) suggests that successful companies are the ones that constantly detect or create new knowledge in order to solve familiar and unfamiliar problems and develop this knowledge purposefully, systematically and proportionate to the strategic objectives of the organization at all levels and sectors and are looking into new technologies and products. On the other hand, competition among companies has lost its importance and competitiveness of supply chains to provide the highest value to customers, as quick and agile, is approved (Hult, Ketchen, & Arrfelt, 2007). Knowledge is known as a key intangible resource and valuable organizational asset that is the base of constant development and sustainable competitive advantage.(Allameh, Zare, & davoodi, 2011) It adds value through its contribution to products, processes, and people, while knowledge management (KM)