Purpose – Intangible resources are touted as powerful firm performance drivers. In order to compete successfully, a company must possess a rich knowledge-base and capabilities to use and develop it. Association between knowledge and firm performance has been a subject of active research, with the lion’s share of empirical evidence dealing with either intellectual capital or knowledge processes that exist even without managerial input. Literature on the relationship between deliberate and systematic managerial practices (KM practices) and firm performance is still quite novel. The purpose of this paper is to determine if there is a systematic association between KM practices and firm performance. Design/methodology/approach – This study recaps the research on KM practices and firm performance by systematically reviewing and analyzing the empirical KM literature. Originality/value – KM literature has been recapped numerous times before. However, this paper is the first effort to review and analyzes the literature in terms of KM practices and firm performance. The results will increase the understanding of potentially most effective KM practices which are associated with firm performance outcomes. Practical implications – The results of this study serve as a guideline for managers, who are dealing with the challenges related to resource optimization; it indicates the potentially most effective managerial practices that are associated with enhanced firm performance through improved management of knowledge resources.