IS STRASSMANN’S ‘KNOWLEDGE MANAGEMENT’ AN IMPORTANT METRIC By: Masoud. Noordeh (DBA student)
In today’s dynamic business environment, Knowledge management systems facilitate organizational learning and knowledge creation. They are designed to provide rapid feedback to knowledge workers and significantly improve business performance. This paper examines the concept of knowledge management metric from the view point of Paul Strassmann. Keywords: Knowledge, Performance Management Metric, Knowledge Management. Introduction
Knowledge management has become one of the major performance management and companies have embraced the concept and invested in systems, people, and information technologies to this purpose. On the other hand, there has been the pressure to move away from the traditional performance management metrics which are considered to be ‘backward looking accounting based performance measurement systems’ that only focuses on traditional cost accounting (Bourne et al. 2000). Knowledge management has been introduced by Strassmann (1999), Drucker (1995), and others as an important metric for measuring performance. According to Knapp (1998), Knowledge management transfers intellectual capital to value processes such as knowledge creation, innovation, and knowledge acquisition, organization, application, sharing, and replenishment. In addition, knowledge management should specify knowledge management as the movement to reproduce the information environment known to be conducive to successful R&D, rich, deep, and open communication and information access and deploy it broadly across the organization (Koenig, 2012). To many companies today, lasting competitive advantage can only be theirs if they become knowledge creating companies or learning organizations. Knowledge – creating companies exploit two kinds of knowledge. One is explicit knowledge- data, documents, things written down or stored on computers. The other kind is tacit knowledge- the...
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