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Introduction

Management strategies In the present postindustrial society,


for individual knowledge has become a key resource of the
knowledge and economy (Bell, 1973). Faced with global
competition and increasingly dynamic
organizational environments, organizations are being advised
knowledge to assemble people of diverse talents and
employ their expertise to gain access to new
markets and new technologies. Large vertical
Ganesh D. Bhatt organizations, which were once considered
unassailable as a result of their huge
technological infrastructure and physical
facilities, have become inflexible in responding
to volatile markets and meeting customers
demands in products and services quickly.
The author Managers in an array of firms are
recognizing that to survive in complex and
Ganesh D. Bhatt is Assistant Professor, Department of
dynamic environments, organizations must be
Information Science and Systems, Morgan State
swift and flexible. In addition, organizations
University, Baltimore, Maryland, USA.
should be efficient in managing knowledge.
However, a majority of managers are facing
Keywords several challenges in understanding the
Individual behaviour, Information, Organization, practical aspect of knowledge management
Management (Davenport et al., 1996).
These challenges are occurring because
Abstract traditionally managers have worked with
physical and tangible resources. Based on
In the present postindustrial society, knowledge has
long-term forecasts and future schedules on
become a key resource. However, organizations face
production, management used to allocate the
innumerable challenges in nurturing and managing
resources. Also, traditionally, coordination of
knowledge. Unlike manufacturing activities, knowledge
activities was facilitated through
activities are difficult to monitor and control, because only
well-formulated rules, procedures, and plans.
a part of knowledge is internalized by the organization,
However, knowledge activities cannot be
the other part is internalized by the individuals. This
neatly decomposed, as professionals cannot
duality between individual knowledge and organizational
knowledge demands different sets of management
be trained to perform diverse sets of
strategies in knowledge management. This paper
knowledge activities. Professionals often
provides a framework that explores the differences possess expertise only in a few areas, because
between individual knowledge and organizational
development of expertise takes years of
knowledge, and proposes a set of management strategies training and practice (Simon, 1976). Second,
for knowledge management. The paper also discusses the traditionally, managers have found ways to
ways through which an organization can transform monitor and control well-understood
individual knowledge into organizational knowledge. production processes, but there are no proven
methods that managers can use in knowledge
management.
Electronic access
Although a growing body of literature on
The current issue and full text archive of this journal is organizational knowledge is evolving, a
available at majority of studies are case-specific and most
http://www.emeraldinsight.com/1367-3270.htm of these studies are normative in nature
(Garvin, 1993). Moreover, a number of
studies broaden the definition of knowledge
management so much that they categorize
every successful organizational activity
Journal of Knowledge Management
under the purview of knowledge management
Volume 6 . Number 1 . 2002 . pp. 3139
# MCB UP Limited . ISSN 1367-3270 (Davenport et al., 1996). We believe these
DOI 10.1108/13673270210417673 kinds of explanations run the risk of being
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Strategies for individual knowledge and organizational knowledge Journal of Knowledge Management
Ganesh D. Bhatt Volume 6 . Number 1 . 2002 . 3139

tautologies and do not provide any concrete The other part of the knowledge still remains
guideline to practicing managers. We aim at exclusively in the domain of the individual.
clarifying some of these ambiguities and This knowledge cannot be fully
provide a framework between individual communicated, but only perceived by the
knowledge and organizational knowledge. individual (Polanyi, 1967; Nelson and
The use of this framework enables managers Winter, 1982; Nonaka, 1994; Nonaka and
to understand how different kinds of Takeuchi, 1995).
knowledge are conceptualized and managed. To manage knowledge efficiently, a firm
needs a highly flexible and adaptable
organizational structure. For example,
Defining knowledge Prahalad and Hamel (1990) suggest that in
present environments, organizations should
Because of its intangible and fuzzy nature, structure on the basis of core competencies,
defining knowledge precisely is difficult. What because these kinds of structures are
is knowledge for one person can be inherently dynamic and flexible and they can
information for the other. Therefore, sustain high level of environmental
valuation of knowledge is risky, because uncertainty and chaos (see also Nonaka,
productivity gain from untried knowledge 1994).
cannot be guaranteed. Moreover, knowledge Knowledge management is thus a process
can be a liability if it does not provide the of facilitating knowledge-related activities,
expected results. For example, presently, the such as creation, capture, transformation, and
majority of management techniques used by use of knowledge (Bhatt, 2000). The
several firms are in stark contrast to the management process includes a range of
traditional management principles that once activities ranging from learning,
were perceived to increase the collaboration, and experimentation to
competitiveness of the firms. In the present integration of diverse sets of tasks and
environment, the use of these traditional implementation of powerful information
methods has become a liability, as these systems, such as Internets, intranets, and
methods have not been found to offer extranets.
competitive advantages to the firms (see
Nonaka and Takeuchi, 1995; Prahalad and
Hamel, 1990). Individual knowledge vs organizational
Despite the difficulties in defining knowledge
knowledge, it is well agreed that knowledge is
an organized combination of ideas, rules, A number of researchers such as Weick
procedures, and information (Marakas, 1999, (1978) and Simon (1976) believed that
p. 264). That is, only through the organizations did not have learning
organization, does information find its life capabilities. It is rather individuals in
and become knowledge. Quinn et al. (1996) organizations that learn. However, a number
equate knowledge with professional intellect. of researchers like Starbuck (1983) and
According to this view, organizational Nelson and Winter (1982) propose that
knowledge, at best, is a metaphor, as it is not organizations evolve through their learning
the organization but people in the capabilities. Organizations learn and acquire
organization who create knowledge. Nonaka knowledge through their routines and
(1994) defines knowledge as justified belief, repertoires, which are embedded in specific
where beliefs are used to justify self-interests. organizational histories (Nelson and Winter,
This concept of knowledge is congruent with 1982). The way in which knowledge of
the constructionist perspective. In this diverse repertoires or routines is integrated
perspective, actors are considered to enact and new knowledge is created is shaped by
and construct realities based on their mental organizational history and culture (Barney,
models, which are shaped through 1986). In this perspective, an organization is
interpretations and discourse between referred as a problem-facing and
different members (Dervin, 1994). A part of problem-solving entity. The learning that
knowledge, thus, becomes public goods that takes place in an organization is significantly
are continually reexamined and reinterpreted affected by the complexity of tasks and the
by different social members (Raelin, 1997). organizational environment.
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Strategies for individual knowledge and organizational knowledge Journal of Knowledge Management
Ganesh D. Bhatt Volume 6 . Number 1 . 2002 . 3139

We argue that individual knowledge and breakdown of activities are predefined in


organizational knowledge are distinct yet detail, knowledge activities are often
interdependent. The extent to which each unstructured and their specifications cannot
individual interacts with the other depends on be predefined in detail. The outcome of
the organizational culture (Bhatt, 1998). We knowledge-intensive activities is uncertain.
take this view because in the present The success, however, often brings
environment, individuals in the organizations innovation and improvements. Therefore,
need to make many quick decisions to resolve knowledge sharing is a choice that is selected
customers problems. Instead of using rules and used differently by different professionals.
and regulations as directed from the Unlike formal breakdown of work-structures
hierarchy, employees are forced to make as dictated by management, knowledge
many judgments to solve business problems sharing is an informal and social process.
efficiently (Stalk, 1988). In other words, how professionals process
On the other hand, in complex situations, and share knowledge becomes an expression
where organizational tasks are highly of their personal expertise, experience, and
interdependent and individuals do not creativity. Based on their expertise and
possess necessary levels of expertise to solve experience, knowledge professionals decide
interdisciplinary problems, employees are with whom to interact, how to interact, and
required to collaborate with others to share what knowledge to seek. Cappelli (2000, p.
their knowledge and expertise. By agreeing on 104) argues convincingly this in following
common presumptions and analytical words:
frameworks, employees can coordinate The open competition for other companies
diverse sets of activities and solve people, once a rarity in business, is now an
accepted fact. Executives know that fast-moving
organization-wide complex problems. Many
markets require fast-moving organizations that
of these kinds of tasks are confronted by are continually refreshed with new talent.
professional firms, where each individual
possesses expertise in a specific area, because He further adds:
of his/her educational background and work Today when an oil company wants to expand the
sales of products at its service stations, it hires
practice. As long as individuals in professional
managers from Pepsi and Frito-Lay with
firms confront tasks that are within their areas expertise in retailing. When an airline wants to
of expertise, they can easily execute these get better at managing customer relationships,
tasks without requiring interactions with it recruits executives from Marriott with
others. However, when the nature of tasks is experience in customer service (Cappelli,
2000, p. 105).
complex, requiring integration of expertise
from several interdisciplinary areas, The above scenarios emphasize the
individuals need high levels of interaction importance of individual expertise. To better
with others, besides being able to access understand the relationship between
organizational knowledge. individual knowledge and organizational
Although an organization can use individual knowledge, we propose a framework as shown
expertise in seeking the solutions of in Figure 1. For discussion purposes, nature
organization-wide problems, it cannot claim of interactions and nature of tasks are
its right on individuals knowledge. On the identified as two independent linear concepts,
contrary, the organization itself becomes considered important in knowledge creation
vulnerable to the mobility and idiosyncrasies in the organization.
of experts. Therefore, even after employing a The horizontal axis in Figure 1 represents
number of experts, the organization may still the nature of interactions that can range from
not gain its full potential in solving low or independent to high or
organization-wide complex problems. interdependent. The vertical axis represents
Sharing of knowledge for solving a complex the nature of tasks that can range from
problem is not synonymous with the routine and specifiable to non-routine and
decomposition of knowledge activities. What non-specifiable. These two concepts provide
kind of knowledge is shared and how the following four categories of knowledge:
knowledge will be shared are determined by (1) Cell 1. In this cell, the level of interactions
the professionals, not by the management. between employees is low and
Moreover, unlike production-based activities, organizational tasks are routine and
where almost all the specifications and specifiable. Under such considerations,
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Strategies for individual knowledge and organizational knowledge Journal of Knowledge Management
Ganesh D. Bhatt Volume 6 . Number 1 . 2002 . 3139

Figure 1 Relationship between individual knowledge and organizational knowledge

an organization is likely to empower its Getting advice from experts on specific


employees to use their discretion. This is problems and tasks is not the same as
especially important in the present reporting non-routine and non-specifiable
dynamic and turbulent environment, tasks to higher levels in the hierarchy.
because the speed at which organizational Traditionally, each organization devised a
problems are resolved produces the set of systems that enabled its
competitive advantages to the businesses management to take actions on
(Stalk, 1988). In such environments, exceptional cases. Presently, most of the
therefore, an organization is likely to activities require task-specific expertise
empower its employees to resolve routine that demands a high level of
problems on the spot rather than ask understanding of the tasks and their
them to direct routine problems upward effects on the organization. Therefore, it is
in the hierarchy for scrutiny and unwarranted to direct non-specifiable
solutions. For example, recently, some tasks upward in the hierarchy, because it
phone companies, such as AT&T, have only causes delay in solving the problems.
started to authorize their operators to With the latest explosion of the World
offer credits to customers on the spot Wide Web, a number of firms are placing
because of misconnections or line cut-off. directories of their experts on the
(2) Cell 2. In this cell, the degree of intranets, listing their names, expertise,
interactions is low and the nature of tasks and phone numbers. Similar to a Yellow
is non-routine and non-specifiable. Not Pages telephone directory, the directory of
everyone in the organization is qualified the experts can be used to connect
to solve non-routine and non-specifiable employees with the group of experts for
tasks, as executing these tasks requires solving a specific problem.
high levels of expertise. Therefore, (3) Cell 3. In this cell, the degree of
frontline employees are advised to direct interactions is high and the nature of the
these non-specifiable tasks and problems tasks is complex. To deal with these kinds
to those people in the organization who of conditions, employees need to
are considered experts in specific areas. continually share their expertise with
For example, British Petroleum (BP) has others so that they can coordinate their
been found to connect to its drilling and tasks in unison. After all, the very
hardware experts electronically, when existence of an organization depends on
faced with malfunctions of its drilling the coordination of tasks.
equipments. The high-resolution video The organization, however, cannot
camera provides a view of the dictate the rules of coordination and
malfunctioning parts of the equipment to knowledge sharing. Since only a part of
the experts, who then can provide online tacit knowledge is internalized by the
solutions of the problems. organization, the other part is internalized
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Strategies for individual knowledge and organizational knowledge Journal of Knowledge Management
Ganesh D. Bhatt Volume 6 . Number 1 . 2002 . 3139

by employees. Therefore, it becomes become one of the main facets of


critical for management to find some kind competitiveness, a number of firms are
of commonality between individual and transferring a number of tasks from cell 2
organizational knowledge and provide (which emphasizes individual expertise) to
necessary incentives to employees to cell 3 (which emphasizes collaboration). In
share their knowledge and enhance the the early stage of an organization, experts play
contents of the organizational knowledge a critical role in responding to organizational
base. In highly dynamic and competitive challenges and problems, however, as an
environments, the kind of knowledge that organization begins to grow and mature,
is germane to a task cannot be easily relying on expertise is not an efficient means
specified. Therefore, employees often of dealing with the problems. One solution to
form their own informal communities of deal with this kind of situation is through the
expertise from where they can get use of collaboration among organizational
necessary pieces of knowledge. For members. The reasons for bringing people
example, professional groups in several together to solve organization-wide problems
organizations make use of on-line are not based on economic issues alone, but a
discussion forums and listserv to seek number of political issues also begin to
knowledge from outside sources. challenge the managements reliance on
Knowledge sharing is critical for those experts.
organizations which are large and
geographically scattered in different
locations. By sharing knowledge across Role of organizations in creating
different geographical locations, organizational knowledge
organizational members are likely to
increase their knowledge and also bring Figure 1 shows that one of the main
forth a collective sense of realities, constituents of organizational knowledge is
resulting the creation of organizational interactions. In an organization where the
knowledge. Ernst and Young, one of the number of interactions between
largest consulting firms, usually employs organizational members is kept to a
this kind of network among its employees minimum, most of knowledge remains in the
for knowledge sharing and testing their control of individuals rather than the
presumptions on the novel problems organization. However, a large part of
faced by their client-firms. knowledge is internalized within the
(4) Cell 4. In this cell, the degree of organization through informal get-together
interactions is high and the nature of the and interactions between employees (Bhatt,
tasks is routine and specifiable. In these 1998). In this interactive process, not only do
conditions, organizations often follow individuals enrich their knowledge, but also
formal rules and procedures. A majority make a part of knowledge available for the
of problems faced by traditional organization that is generated as a result of the
organizations belong to this cell, in which interactions. In other words, the knowledge
knowledge is specified through that is internalized within the organization is
organizational routines and repertoires. not produced by any of the organizational
The rules, procedures, and formal members alone, but created through their
organizational structures ensure that an interactions.
organization can efficiently coordinate its Individual knowledge, if not shared with
work-processes and tasks in an orderly others, will have very little effect on the
manner. organizational knowledge base. Therefore,
one of the important tasks for management is
Migration across the cells to facilitate the process of interactions
Although we have argued that each between employees and make them sensitive
organization can accomplish its tasks through toward environmental stimuli so that their
four kinds of knowledge as shown in Figure 1, individual knowledge is amplified and
it does not mean that an organization will internalized to contribute to the organizational
never shift some of its tasks and problems knowledge base (Nonaka, 1994). Knowledge
from an existing cell to other cells. In an deviation is important because this process
environment where responsiveness has brings forth new perspectives on the
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Strategies for individual knowledge and organizational knowledge Journal of Knowledge Management
Ganesh D. Bhatt Volume 6 . Number 1 . 2002 . 3139

individuals knowledge through validity guidelines under which employees can


checks, generated as a result of debates and use their discretion. Once employees
critiques at the group levels (Weick, 1978). become clear about their responsibilities
and authority, they are likely to make
prudent use of their discretion.
Management strategies in knowledge The other goal that management
management should pursue is to train its employees so
that they can deal with routine work-
Even though we have shown that expertise at processes and tasks. The employees
the individual level is different from should not only be taught task-specific
organizational knowledge, organizations skills, but also be trained to understand
cannot ignore the seriousness of harnessing the hidden realities of doing business in
individual knowledge. If individuals do not the present dynamic and competitive
possess necessary skills and knowledge, their environment. Courtesy towards
interactions are unlikely to create valuable customers, accuracy and timeliness of
organizational knowledge (Bhatt, 2001). So responses to customers inquiries, and
responsiveness to customers demands
the goal for management is to encourage
should be considered critical in obtaining
employees to continually refresh their
honest feedback from customers so that
knowledge base by interacting with those who
management can reevaluate the level of
possess work-specific skills and expertise. In
employee-discretions and act
Figure 2, we show how an organization can
accordingly.
manage different kinds of knowledge, which
(2) Cell 2. In cell 2, the main goal of
we define as the process of creating,
management should be to motivate and
capturing, distributing, and using knowledge
nurture the expertise of its experts. The
for the accomplishment of a task (Bhatt, management should not only challenge
2000): experts for higher levels of expectations,
(1) Cell 1. In cell 1, the main challenge for but also encourage and reward them. The
management is to empower its other route that an organization can take
employees. In this cell, because is to hire bright individuals and motivate
employees face routine problems, they them for handling organizational
can gain quick understanding of the responsibilities.
problems and their solutions through Because experts are highly mobile and
work related training. However, the idiosyncratic they seek freedom in
degree of discretion needs to be carrying out their tasks. It is crucial for
determined on the basis of individual management that it carefully balances the
work-experience and rank. Also, needs of the organization and the
management should provide broad creativity of the experts. Often, experts

Figure 2 Knowledge management strategies

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Strategies for individual knowledge and organizational knowledge Journal of Knowledge Management
Ganesh D. Bhatt Volume 6 . Number 1 . 2002 . 3139

run their own agenda and do not pay being taken into account in seeking the
attention to organizational mission, goals, solutions of the organizational problems,
and strategies. At the same time, experts the organization is likely to suffer from
cannot be commanded that they should implementation problems. Hewlett-
use their expertise for the organization. Packard (HP) and 3-M are well known
Therefore, management needs to for creating collaborative environments in
determine the ways through which it can their organizations to facilitate easy
balance the needs of the organization, i.e. networking and knowledge sharing
exploitation of experts knowledge, and among employees.
the desires of experts, i.e. exploration of (4) Cell 4. In cell 4, the main challenge for an
new knowledge. Microsoft, a premier organization is to store and codify rules
software company, has been found to and procedures in simple format so that
efficiently manage this kind of dilemma in employees can easily access and
knowledge management. It not only understand them. If rules and procedures
encourages its experts for risk-taking, but are not stored and written clearly, each
also sets concrete guidelines on resources, employee is likely to follow his/her own
schedules, and usability of the projects interpretation of the rules. However,
that experts intend to initiate. when rules and procedures are clearly
(3) Cell 3. In cell 3, the use of self-organized marked down, there is far less ambiguity
teams and social interactions are in understanding and interpreting those
considered conducive to enhancing the rules and procedures. Automation and
richness of the organizational knowledge standardization of tasks and schedules are
base. The emphasis on multiple common means of handling this kind of
interpretations not only brings new situation.
realities, but also renews organizational The rules and regulations for carrying
commitment to replenish the contents of routine tasks do not remain the same
the organizational knowledge base throughout the life of an organization.
(Nonaka and Takeuchi, 1995). The When external environments begin to
process of multiple interpretations on change drastically, it is important that
knowledge is important as it allows management carefully reviews the
individuals to revise, reshape, or modify significance of existing rules, procedures,
their belief systems in relation to others and policies. If existing rules, procedures,
(Bhatt, 2000). and policies do not fit to the current state
In order to enhance interactions of business realities, management should
between employees, an organization can seek and devise new sets of rules,
use a wide variety of divergent procedures, and policies. In other words,
perspectives, including brainstorming, reviews and revisions of rules,
dialectical thinking, and continuous procedures, and policies become one of
experimentations (Bhatt, 1998). By the main goals of the firm to keep abreast
bringing forth multiple perspectives on with changing realities and new
knowledge, an organization becomes knowledge. A number of quality
much more sensitive to environmental improvement initiatives undertaken by
stimuli to understand the realities of the several firms come under this category.
marketplace. Moreover, multiple
perspectives enable organizations to
assess the applicability and the risk of Implications
using a particular kind of knowledge in
various situations. In the present dynamic and fast environment,
Managements role in creating a the need for organizational knowledge is
nature of collaboration is important clear. In several situations, however, the
because complex organizational tasks application of individual knowledge and
require deeper analysis of the problems. expertise becomes critical. This depends on
Moreover, implementation of the nature of tasks and the nature of
organization-wide solutions requires interactions between individuals. If a task
commitment from employees. If requires specific expertise, a specialist can use
employees views and perspectives are not his or her own knowledge to solve the
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Strategies for individual knowledge and organizational knowledge Journal of Knowledge Management
Ganesh D. Bhatt Volume 6 . Number 1 . 2002 . 3139

problem. On the other hand, if a task requires such as checking customer credits, billing,
the application of knowledge from different and other inquiries, can be easily assigned at
areas, individual expertise in itself may not be the individual levels. However, when an
a solution of the problem. In this case, how organization faces nonspecific tasks, the
organizational members interact and collective learning and quick interactions
collaborate to share their knowledge becomes between pools of employees are likely to be
much more important. useful to solve the problems quickly.
Also the extent to which a task is considered We understand that individual knowledge is
specific or non-specific depends on the a product of social interactions, created in a
existing organizational environment and socially constructed culture. However, this
managements willingness to empower its discussion is beyond the scope of this paper.
people. For example, in a university setting, Our main goal is to emphasize that individual
until a few years ago teaching assistants were knowledge is as important as organizational
guided by the university professors on how knowledge and the relative importance of
they should teach, what kinds of course both depends on the nature of tasks, the level
contents they should cover, and how they of individual training, and motivation, and
should grade the students. But with managements willingness to abdicate some of
increasing pressure in research and its traditional responsibilities to the lower
publications, a majority of professors are no level employees.
longer interested in providing any serious
guidance to their teaching assistants. Rather,
professors have given their teaching Conclusions
responsibilities to the teaching assistants.
Therefore, for teaching assistants teaching a In the present turbulent environment,
class on his or her own has become a norm. organizations have seen a shift from
Now, teaching assistants decide what contemporary approaches of strategy to the
contents to cover and how to grade their internal resources of the firms in explaining
students. the advantages in firms performance
However, often, individual expertise is not (Barney, 1986; Prahalad and Hamel, 1990;
sufficient. For example, designing and writing Teece et al., 1997). Central to the theme of
complex software programs require the use of the resource-based view is the role of
many experts who work with different organizations in developing and deploying
modules and applications. In this case, scarce resource capabilities, which cannot be
organizational culture and interaction easily imitated.
patterns among experts become crucial. Or In this perspective, knowledge is considered
take the case of developing a new product for a key resource, but many organizations still do
a company. In this case, organizational not know how to manage knowledge. A few
knowledge is far more important than the organizations, such as Federal Express,
individual expertise possessed by marketing, Hewlett-Packard, and 3-M have learnt to
manufacturing, or R&D people. For the leverage knowledge for their competitiveness,
successful launch of a product, assimilation of but a majority of organizations are still facing
cross-functional expertise and collective innumerable challenges in capitalizing on
learning become important (Prahalad and knowledge.
Hamel, 1990). This paper argues that a part of knowledge
A number of researchers argue in favor of is public and the other part of knowledge is
empowerment. They contend that if private. Although an organization can
individuals are empowered, they begin to take monitor and control public knowledge, it
extra responsibilities to solve organizational finds it difficult to control private knowledge.
problems by learning new skills at the jobs. One way through which management can
This could be correct for specific tasks, as manage private knowledge is by creating an
they may be solved with minor adjustments. environment of collaboration and informal
But we caution that empowerment does not coordination. In so doing, an organization not
necessarily leads to better results. only deepens its employees knowledge but
Individual training and nature of tasks are also creates new organizational knowledge.
main factors that impact on the results of the Through participation and cooperation, an
empowerment. For example, routine tasks, organization establishes a shared-schema to
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Strategies for individual knowledge and organizational knowledge Journal of Knowledge Management
Ganesh D. Bhatt Volume 6 . Number 1 . 2002 . 3139

replace old knowledge with the new one that Davenport, T.H., Jarvenpaa, S.L. and Beers, M.C. (1996),
becomes necessary for continuous ``Improving knowledge work processes, Sloan
Management Review, Summer, pp. 53-65.
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