Introduction***
"The only thing that gives an organization a competitive edge – the only that is
sustainable – is what it knows, how it uses what it knows and how fast it can know something knew" (Prusak 1996).
Organising knowledge effectively is often discussed as central element of successful organisations. The initial statement – or: hypothesis - emphasizes this perspective.
Discussing this hypothesis raises three major questions: 1. Does literature support the perspective of knowledge as key factor for competitiveness? 2. Which role does knowledge actually play in organisational practices and how comes that – despite a general sense of importance and a broad academic discussion – handling knowledge appropriately is not ultimately implemented and cultivated in today's organisations? 3.
What needs to be done in order to close this gap between theory and practice?
Consequently, this essay goes beyond just "testing" the initial hypothesis by discussing the above raised questions in a structured, three-part approach:
A. Situation: Organising knowledge and competitiveness B. Complication: Burdens for organising knowledge effectively C. Concluding solution: Ideas for fostering knowledge management in practice [...]
Table of Contents
INTRODUCTION
A | SITUATION: ORGANISING KNOWLEDGE AND COMPETITIVENESS
KNOWLEDGE AS A WELL-KNOWN CONCEPT
ENTERING THE KNOWLEDGE ERA
INCREASING IMPORTANCE OF INNOVATION AS KEY TO COMPETITIVENESS
B | COMPLICATION: BURDENS FOR ORGANISING KNOWLEDGE EFFECTIVELY
BURDEN 1 - COMPLEX CHARACTERISTICS OF KNOWLEDGE
BURDEN 2 - LONG-TERM, UNCERTAIN AND INTRANSPARENT PAY-OFFS
BURDEN 3 - DISINCENTIVES
C | SOLUTION: IDEAS FOR FOSTERING KM IN PRACTICE
IDEA 1 - APPROACHING A COMMON GROUND
IDEA 2 - CONVINCING MANAGEMENT AND INVESTORS TO PRIORITIZE
IDEA 3 - APPROACHING NEW INCENTIVE STRUCTURES TO MAKE EVERYONE CONTRIBUTE
Objectives and Core Topics
The primary objective of this work is to explore the gap between the theoretical importance of organizational knowledge as a competitive advantage and its practical implementation in modern business environments. The paper identifies why, despite widespread academic agreement, effective knowledge management often fails to reach the priority it deserves in actual organizational practice, and proposes structural solutions to bridge this divide.
- The relationship between organizational knowledge and sustainable competitive advantage.
- The transition from industrial-based models to the modern "knowledge era."
- Key barriers to effective knowledge management, including complexity and lack of incentives.
- Strategic approaches to fostering knowledge-intensive cultures and incentive structures.
Excerpt from the Book
Burden 1 - Complex characteristics of knowledge
Not understanding the different dimensions of knowledge clearly inhibits its proper treatment. The following not only explains how complex knowledge is but also provides a brief overview on its manifold dimensions.
Davenport and Prusak (1998) define knowledge as "a flux mix of framed experiences, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experience and information. In organisations it often becomes embedded not only in documents or repositories but also in organisational routines, processes, practices, and norms" (in Tsoukas and Vladimirou 2001:974). In agreement with the current predominant assumptions of knowledge (e.g., Blackler 1995, Cook and Brown 1999, Garcia-Lorenzo 2006) this definition includes two dimensions of knowledge that can be labelled: "having" knowledge and "enabling" knowledge.
"Whereas in the first perspective knowledge is seen as an attribute or possession of the organisation or of its individual members- "knowledge workers"- the second perspective looks at knowledge from a more systematic point of view, as a dynamic generative and emergent process" (Garcia-Lorenzo, Mitleton-Kelly, Galliers 2003:4).
This distinction targets to Polanyi's differentiation made in 1966 between explicit and tacit knowledge, which are complementary and essential to knowledge creation. Explicit knowledge is considered to be codified or tangible, which highlights the possibility of expressing this form of knowledge in words, numbers or sounds and thus sharing it with and transmitting it to other organisational members in form of for example data and manuals.
In contrast, tacit knowledge is hard to express in a formal language and thus hard to transmit between individuals. It is usually expressed through skills based on practices and
Summary of Chapters
INTRODUCTION: The introduction outlines the hypothesis that knowledge is a central element for organizational success and presents the three-part structure used to investigate the gap between theory and practice.
A | SITUATION: ORGANISING KNOWLEDGE AND COMPETITIVENESS: This chapter contextualizes knowledge as a long-standing economic resource and analyzes the shift into the "knowledge era," where innovation is the key driver of competitiveness.
B | COMPLICATION: BURDENS FOR ORGANISING KNOWLEDGE EFFECTIVELY: This section identifies three primary obstacles to effective knowledge management: the inherent complexity of knowledge, the difficulty of measuring long-term pay-offs, and the presence of disincentives for employees.
C | SOLUTION: IDEAS FOR FOSTERING KM IN PRACTICE: The final chapter proposes practical strategies, such as creating a common understanding through storytelling, convincing management of the economic impact, and implementing new incentive structures for knowledge workers.
Keywords
Knowledge Management, Competitive Advantage, Organizational Knowledge, Tacit Knowledge, Explicit Knowledge, Innovation, Information Economy, Knowledge Worker, Intellectual Capital, Sensemaking, Organizational Learning, Incentive Structures, Strategy, Performance, Economic Growth
Frequently Asked Questions
What is the core focus of this publication?
The publication examines the hypothesis that knowledge is an essential source of competitive advantage and investigates why organizations often struggle to implement effective knowledge management practices despite theoretical recognition of their importance.
What are the primary themes discussed?
Central themes include the evolution of the knowledge economy, the distinction between "having" and "enabling" knowledge, the barriers to knowledge sharing, and strategies for aligning organizational culture with knowledge management goals.
What is the overarching research goal?
The goal is to move beyond the academic assertion that knowledge is important and provide practical insight into why a gap exists between theory and practice, ultimately offering actionable solutions to close this gap.
What scientific methods are utilized?
The paper employs a structured, three-part argumentative approach (Situation, Complication, Solution) based on a thorough literature review of organizational theory, economics, and management studies.
What does the main body of the text cover?
The main body systematically reviews the current landscape of the knowledge economy, categorizes the specific burdens (complexity, pay-off uncertainty, disincentives) faced by firms, and explores solutions like storytelling and decentralized organizational structures.
How would you summarize the work in a few keywords?
Key terms include Knowledge Management, Competitive Advantage, Organizational Learning, Innovation, and Knowledge Workers.
Why is tacit knowledge particularly difficult to manage?
Tacit knowledge is deeply embedded in human experience, skills, and social practices. Because it cannot be easily codified or transmitted in manuals, it resists mechanical management and measurement.
How can organizations overcome disincentives to contribute to knowledge sharing?
The paper suggests that organizations must shift their incentive systems to reward knowledge sharing, decentralize power structures, and value employees as "knowledge workers" who own the means of production.
- Citar trabajo
- Martina Jansen (Autor), 2009, Knowledge is the organisation's essential source of competetive advantage, Múnich, GRIN Verlag, https://www.grin.com/document/124063
