Knowledge Management Systems

The knowledge-based perspective postulates that
the services rendered by tangible resources
depend on how they are combined and applied,
which is in turn a function of the firm’s know-how
(i.e.,knowledge). This knowledge is embedded in
and carried through multiple entities including
organization culture and identity, routines, policies,
systems, and documents, as well as individualemployees (Grant 1996a, 1996b; Nelson and
Winter 1982; Spender 1996a, 1996b). Because
knowledge-based resources are usually difficult to
imitate and socially complex, the knowledgebased
view of thefirm posits that these knowledge
assets may produce long-term sustainable
competitive advantage. However, it is less the
knowledge existing at any given time per se than
the firm’s ability toeffectively apply the existing
knowledge to create new knowledge and to take
action that forms the basis for achieving competitive
advantage from knowledge-based assets. It
is here that informationtechnologies may play an
important role in effectuating the knowledgebased
view of the firm. Advanced information
technologies (e.g., the Internet, intranets, extranets,
browsers, data warehouses, datamining
techniques, and software agents) can be used to
systematize, enhance, and expedite large-scale
intra- and inter-firm knowledge management.
Although the concept of coding, storing, andtransmitting
knowledge in organizations is not new—
training and employee development programs,
organizational policies, routines, procedures, reports,
and manuals have served this function for
years(Alavi and Leidner 1999)—organizational
and managerial practice has recently become
more knowledge-focused. For example, benchmarking,
knowledge audits, best practice transfer,
and employeedevelopment point to the realization
of the importance of organizational knowledge and
intangible assets in general (Grant 1996a, 1996b;
Spender 1996a, 1996b). Given the importance of
organizational...