KNOWLEDGE MANAGEMENT

Knowledge Management



Knowledge Management

Introduction

Knowledge is a key rationale for the survival of firms; what firms do better than markets are the sharing and transfer of the knowledge of individuals and groups within an organization. Successful managers recognize that "the competitive advantage of firms in today's global economy stems not from market position but from the ownership, employment, or both, of difficult to replicate knowledge assets and the manner in which they deployed" (Teece, 2009, p. 194). This focus on knowledge as a core capability of the firm echoes Drucker's (2000) observation that "knowledge has become the key economic resource and the dominant and perhaps even the only source of comparative advantage" (p. 287). Shortly after making that statement, Drucker (2000, pp. 11) predicted that, by the year 2005, more than one third of the U.S. labor force would be made up of knowledge workers.

Suggesting that building knowledge -based theory of the firm would be a valuable tool for researchers many researcher have proposed a model that recognized organizational capability, organizational design, decision-making mechanisms, and the boundaries of the firm. However, this formulation omits what is perhaps the most critical element of knowledge management, the ability to transfer that knowledge between and among members of the organization.

Unfortunately, knowledge management research fragmented across a variety of disciplines as well as by the concepts viewed as significant by researchers and firms. For example, various scholars view knowledge management strategy, knowledge management enablers, or knowledge management process capability as the key determinant of knowledge management performance. We propose an integrated framework for measuring the various aspects of knowledge management and assessing their effectiveness in improving overall organizational performance.

Managers are increasingly aware of how knowledge can affect their company's competitive position and are attempting to use knowledge to sustain organizational performance and gain market share. Unfortunately, knowledge management research fragmented across a variety of disciplines. It is also fragmented conceptually, particularly with respect to the concepts that researchers and organizations identify as significant. We constructed an integrated framework for measuring the various aspects of knowledge management strategy, knowledge management enablers, and knowledge management process capability to assess their effectiveness in improving knowledge management performance. Studying a sample of firms from the United States software industry, we found support for the importance of knowledge management strategy and knowledge management enablers in improving knowledge management performance, and mixed results for the importance of knowledge management process capability in improving knowledge management performance.

Managers need to consider both how knowledge can affect their company's competitive position, and how they might use knowledge to sustain organizational performance and increase market share. Effective knowledge management is critical for organizations striving to gain a lucrative advantage in competitive markets. An increasing number of firms realize knowledge management is an important element they can employ to achieve greater value from core competencies. A sustained competitive advantage depends on a firm's capacity to develop and deploy its knowledge -based resources effectively (Perez & Pablos, 2003).

Knowledge Management encompasses a variety of strategies and performs that deal with how ...