Purpose: The objective of the current study is to empirically investigate interrelationships among three variables; knowledge management (KM), core competence (CC), and firm competitiveness (FC), and to develop a framework based on empirical evidence for developing countries in South Asia. Design/Methodology: This is cross-sectional quantitative research having a stratified sample of 119 larger innovative manufacturing and service organizations in Pakistan. All hypothesized relationships were analyzed by employing SEM using AMOS version. 20. Findings: Results of the study confirmed the positive and significant influence of four constructs of knowledge management processes on four constructs of firm competitiveness (innovation, delivery, quality, and financial performance). Further, knowledge management significantly impacts the firm's competitiveness through the mediation of TOP core competence.

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