MGB200 – Leading Organisations
Semester 2, 2013
“Knowledge is experience. Everything else is just
After studying this week’s content you should be able to:
Define knowledge management, intellectual capital, and
Identify specific ways that organisations acquire and share
Describe the knowledge creation process.
Explain the role of trust in knowledge sharing.
Identify organisational features which facilitate organisational learning.
What is knowledge management?
Knowledge creation process
Tacit and explicit knowledge
Nonaka & Takeuchi
Definitions, history, and benefits
Ability and willingness
Data – Information - Knowledge
a set of discrete,
objective facts about
data endowed with
relevance and purpose
a fluid mix of framed
contextual information and
Source: Davenport & Prusak, 1998.
justified true beliefs (Nonaka, 1994, p.15)
the individual’s ability to draw distinctions within a
collective domain of action, based on an appreciation
of context or theory, or both (Bell, 1999, p.lxiv)
information that is relevant, actionable and at least
partially based on experience (Leonard & Sensiper, 1998,
a fluid mix of framed experience, values, contextual
information and expert insight (Davenport & Prusak, 1998,
“is the management of information, knowledge and
experiences available to an organisation in order
that organisational activities build on what is already
known and extend it further” (Mayo, 1998)
Greater utilisation of organisational knowledge base
Reduction of redundancy & time searching for info.
Increased organisational cohesion & cooperation
Greater organisational learning
KM Proposed Benefits
Reduction of duplication and
time searching for
Wider application of
Reduction of pressure to do
more with limited resources
through building on others’
Increased morale through
Where did KM come from?
Three Social and Economic Trends
– complexity, volume, speed puts pressure on ‘what do we know, who knows it, what don’t we know that we should know’.
2. Ubiquitous computing
– premium value on knowledge that cannot be digitized, codified or easily distributed.
3 Knowledge-Centric View of the Firm
– economists, strategists, commentators agree that the firm’s main building blocks of capability is knowledge (especially
knowledge that is specific or ‘tacit’)
Knowledge residing in the organisation—sum of its:
Knowledge that people possess
Knowledge, trust, and norms of
reciprocity in one's social network
Knowledge captured in systems
Values derived from satisfied
customers, reliable suppliers, etc.
Knowledge Management Processes
• Hiring talent
• Acquiring firms
• Communities of
• Freedom to apply
• Individual learning
Developing a Learning Orientation
Value the generation of new knowledge
Recognise mistakes as part of...
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Cowan, R., David, P. A., Foray, D. (2000) 'The Explicit Economics of Knowledge Codification and
Tacitness ', Industrial and Corporate Change 9(2): 211-253.
Crossan, M. M., H. W. Lane, and R. E. White. 1999. An organizational learning framework: from intuition
Davenport, T. H., & Prusak, L. (1998). Working knowledge: how organizations manage what they know.
DeLong D. W., & Fahey, L. (2000). Diagnosing cultural barriers to knowledge management. Academy of
Management Executive, 14(4), 114-127.
Dirks, K. T., & Ferrin, D. (2001). The role of trust in organizational settings. Organization Science, 12,
Grant, R. M. (1996) 'Toward a Knowledge-Based Theory of the Firm ', Strategic Management Journal
McDermott, R., & O’Dell, C. (2001). Overcoming cultural barriers to sharing knowledge. Journal of
Knowledge Management, 5(1), 76-85.
Nonaka, I. & Takeuchi, H. (1995). The Knowledge-Creating company. Oxford University Press: New
Pfeffer, J., Sutton, R. I. (1999) 'Knowing "What" to Do Is Not Enough: Turning Knowledge into Action ',
California Management Review 42(1): 83-108.
Polanyi, M. (1967) The Tacit Dimension. London: Routledge.
Weiss, L. (1999). Collection and connection: The anatomy of knowledge sharing in professional service
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