A wide variety of organizational practices have been proposed to support th
e creation, storage and transfer of knowledge, yet it is often unclear how
these practices relate to one another in their contribution to organization
al performance. This study develops a categorization system for knowledge m
anagement practices based on two dimensions: the practices' role in the pro
blem-solving process, and the type of problem they address. Analysis of sur
vey data supports the proposed framework and uncovers two higher order fact
ors that correspond to the concepts of exploration and exploitation. By foc
using attention on the importance of problem solving in transforming knowle
dge into business value, this research suggests a new way to understand the
connection between knowledge management practices and organizational goals
. (C) 2001 Elsevier Science B.V. All rights reserved.