This study aims to develop the model to examine whether knowledge management processes contribute to the development of strategic orientation and to enhance innovativeness, and to investigate the influence of these three factors on balanced scorecard outcomes (learning and growth, internal process, customer satisfaction and financial performance). A sample of 203 in Istanbul Stock Market companies was surveyed, using Web-based questionnaires with 119 questions, using fourteen-point scales to measure the degree of agreement on each item of each construct and used to test the model using the Partial Least Squares (PLS) method was applied for the model assessment and analysis of the relationships among constructs. This study finds that KM processes contributes positively to the strategic orientation. And also, there is a significant direct effect of KM on innovativeness. Similarly, KM is the strongest predictor of learning and growth, internal process and customer satisfaction but KM has no direct effect on financial performance. The results also show that strategic orientation becomes statistically significant on innovativeness. Strategic orientation is pivotal in improving learning and growth, internal process, customer satisfaction and on financial performance, while innovativeness affect customer satisfaction and learning and growth directly and indirectly affect the internal process and financial performance. The findings indicate that KM penetrates all relationships among the constructs, sustaining the assertion that knowledge is an essential organizational resource that leverages all value-creating activities in an increasingly dynamic environment. The results indicate that both KM and innovativeness produce significant impacts on performance when they are aligned with a strategic orientation that enables the organization to anticipate and respond to the changing market conditions. Theoretically, the findings of this study suggest that the decomposed approach helps to understand the complex relationships substantially embodied in the KM-strategic orientation, innovativeness and performance relationships, which cannot be assumed using a composite model. This study offers an original contribution by analyzing all of those constructs simultaneously, using established scales so that comparative studies are possible. From the managerial perspective, the findings of this study may help academics and managers design and sustain KM implementation throughout the organization to achieve higher effectiveness, efficiency and profitability.