BUSINESS RESEARCH

Knowledge Management for Innovation and Performance

The effective implementation of knowledge management to maximise knowledge creation, codification, representation and transfer is critical to improving innovation and organisational performance. Research shows that how firms “use” knowledge matters just as much as the knowledge they acquire and create.

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February 2014

A study of 162 manufacturing firms in Asia found that knowledge sharing and knowledge application positively influenced technological innovation – simply amassing and generating new knowledge alone did little to boost innovation.

The consequences of poor knowledge management policies, processes and systems can be substantial. Fortune 500 firms lose an estimated US$31.5bn every year by failing to share knowledge effectively. “Knowledge sharing is the fundamental means through which employees can contribute to knowledge application, innovation, and ultimately the competitive advantage of the organisation”. But many firms have only a rudimentary understanding of the multifarious nature of knowledge sharing and transfer. Investments in state-of-the-art knowledge management systems will only pay off if leaders consider relationships between:

• Organisational context: management support, rewards/incentives, organisational structure, culture and climate
• Interpersonal and team characteristics: diversity, networks, team development
• Motivational factors: beliefs of knowledge ownership, costs and benefits of sharing, trust, team level trust and cohesion

Referenced techniques

Technique

Knowledge Management

This concept provides a review and interpretation of previous work on knowledge management and offers a comprehensive account of benefits achieved by properly managing knowledge, implementation information and success factors.

Technique

Knowledge Capital

The concept reviews the critical points of current knowledge including substantive findings as well as theoretical and methodological contributions to knowledge transfer and intellectual capital. It also presents a compilation of possible and potential benefits and offers selective resources for further exploration.

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