In constantly changing world today, businesses keep trying to survive as they compete to each other intensely by trying to improve their own performance. Competition is getting more intense as new entrants are trying to join the same industry field and rivals keep updating their business strategy to gain larger market share. In order to keep exist and stay ahead of its other competitors, a business needs to have the knowledge regarding whatever can affect its performance and keep updating it due to the constantly changing business world. New world order demands business to emphasize on knowledge.
A business needs knowledge regarding its customers, competitors, products/services, recent industry development, overall operation, etc. These knowledge need to be organized so they can be beneficial for the business. According to King et al. (2002), the issue is most businesses have the knowledge regarding their management, operations, products, etc; but they often unable to allocate this knowledge properly for sustaining maximum advantage. This is when Knowledge Management (KM) steps in. Since knowledge is crucial nowadays, businesses realize they must establish a strategy to manage the knowledge’s flow. This is called KM strategy. Carrillo (2000) cited in Martensson (2000) also suggests that business has driven to a great extent the materialization of KM.
Based on the work of Carrillo et al. (2003), a survey indicates that KM strategy has been developed by approximately 40% of construction businesses while another 41% aim to assemble the strategy within a year. According to Carrillo et al. (2003), about 80% of them considered KM is beneficial to their organizations while some aimed to realize the strategy. Furthermore, as claimed by Martensson (2000), businesses which implement KM are growing steadily.
This shows that KM is a popular subject among businesses today and thus, many studies have been conducted for evaluating the connection between KM and... [continues]
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