The purpose of the existing work is to inspect the impact of knowledge management on organizational performance. Business experts now appreciate how important knowledge management is for organizational performance. Earlier studies have investigated the research model with causal linkages, however, only a few of them have considered sample-selecting bias problems when analyzing the model of knowledge management on organizational performance. The number of 312 executives related to knowledge management from 312 enterprises that have been approved with quality management systems offered suitable responses for analyses. The data was employed to investigate the effect of knowledge management on organizational performance, considering sample-selecting bias. The empirical outcomes indicate that sample-selecting bias exists in the causal impact of knowledge management on organizational performance. The empirical findings are helpful to scholars of knowledge management as well as business executives by giving an insight into the casual effect of knowledge management on organizational performance with the intervention of sample-selecting bias. The acceptance of knowledge management should be tailored to improve competitive advantages that will lead to better organizational performance.