Value creation is widely recognized as a critical determinant of competitiveness within manufacturing industries. This study aims to examine the impact of knowledge management practices on value creation within the supply chain, based on an empirical investigation of ten home appliance manufacturing firms. A conceptual model is empirically tested to identify the relationships among supply chain value, knowledge management, and firm performance through an integrated knowledge management–balanced scorecard framework. Factor Analysis and Structural Equation Modelling are employed to validate the proposed relationships. The findings demonstrate that knowledge management exerts a positive influence on the balanced scorecard approach in manufacturing settings. The proposed model highlights the reciprocal reinforcement between knowledge management and the balanced scorecard in achieving value creation.