Knowledge management: An organizational capabilities perspective

A hallmark of the new economy is the ability of organizations to realize ec onomic value from their collection of knowledge assets as well as their ass ets of information, production distribution, and affiliation. Despite the c ompetitive necessity of becoming a knowledge-based organization, senior man agers have found it difficult to transform their firms through programs of knowledge management. This is particularly true if their organizations have long histories of process and a tradition of business success. This resear ch examines the issue of effective knowledge management from the perspectiv e of organizational capabilities. This perspective suggests that a knowledg e infrastructure consisting of technology, structure, and culture along wit h a knowledge process architecture of acquisition, conversion, application, and protection are essential organizational capabilities or "preconditions " for effective knowledge management. Through analysis of surveys collected from over 300 senior executives, this research empirically models and unco vers key aspects of these dimensions. The results provide a basis for under standing the competitive predisposition of a firm as it enters a program of knowledge management.