The Alignment of Knowledge Management and Strategic Orientation

Topics: Knowledge management, Strategic management, Knowledge Pages: 21 (5601 words) Published: February 22, 2011

Mrs. Aparna Gaur
Faculty HR & IT
International Business School, Kota
Rajasthan, India
tel. 0744-6999364, 982898990,9829035702

Mr. Arun Deshmukh
Faculty Marketing & IB
International Business School, Kota
Rajasthan, India
tel. 0744-6999364, 9571006798



This paper focuses on the value of knowledge management (KM) for strategic management of organizations. While doing so, the perspective here is to find out the significance of knowledge management, how it does reside in strategic management. And how does it have a potential, to be used as a tool to enhance strategic advantage. To the extent that KM can serve the purpose of enhancing strategic advantage of an organization it is effective. Beyond that it could be superfluous. A model-in-the making for explaining the relationship of KM to strategic advantage, is applied to three cases of Indian organizations to demonstrate that KM can be used in a variety of ways to lead to operational effectiveness as well as to take strategic decisions. It is concluded that KM can be applied both for the limited purpose of operational effectiveness as well as for the purposes of strategic management. It should not be hyped into a wonder technique that is panacea for all organizational problems. Nor should it be under-estimated and dismissed as a passing fad.

Design / methodology / approach – The paper follows an exploratry approach and is based on the results of a collection of secondary data of three Indian companies who have traversed the journey of successful implementation of knowledge management concepts and analyzing the factors that contributed to their corresponding strategic advantage. Findings – The findings in the paper suggest that a model can be developed which links the knowledge management orientation of organization to its strategic orientation Research limitations/implications – The limitations of survey research in this paper are acknowledged, Further research could be carried out using more extensive case studies in companies, perhaps longitudinally, or undertaken using sector focused surveys.

Practical implications – It is important to show in the paper that knowledge management systems reflect the strategic orientation of the companies concerned. Where a greater focus on intangibles and intellectual capital occurs it may require a different emphasis on strategic management practices compared to companies where they do not feature strongly. It is important that management recognize and act on this in order to improve corporate performance.

Originality/value – The paper shows that it is widely recognized that Intellectual Capital (IC), whether in the form of knowledge, experience, professional skill, good relationships, or technological capacity is a major source of corporate competitive advantage.

A Brief Profile of Authors


Mrs. Aparna Gaur

At various stages of civilization over the past five thousand years, successions of factors have formed bottlenecks on the efficiency of human beings, threatening to repress the growth of civilization. Upto the end of 1800s, limits on amount of available arable land caused problems as populations were growing and there were more mouths to feed. Then as large-scale manufacturing came into existence, urban labours became the most valuable asset. Following technological breakthroughs, machinery came into picture of production and it began to improve the automation and industry had no longer to depend on labors to that extent. But due to investment in machinery, capital became all-important. Controlling flow of capital was foremost problem for the industrialists at that time and suddenly capital became the bottleneck to efficiency. While traditional three factors of production – Land, Labour and Capital – have become easier to handle, in 21st century, a...

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