A conceptual framework for the management of knowledge in a knowledge-based enterprise

Abstract

Knowledge is at present recognised as a company's most valuable asset and strategic resource in the creation of a competitive advantage. The ability and capacity to manage this recently accentuated intangible asset is fast becoming the most emphasised and critical executive skill for the management of a knowledge-based enterprise. The action-oriented and changing characteristics of knowledge place it in the context of innovation, analysis, synthesis, creativity and value judgement. This study explores the possibility to describe a company knowledge profile that will sufficiently reflect the company's capacity and capability to act in the new knowledge economy. The application of the knowledge profile and certain specific knowledge processors to a knowledge processing activity to obtain a knowledge yield is examined. It is derived that the knowledge yield will not only comprise of new products and services but also of newly created knowledge. This assumption is tested against Nonaka et al.'s model for a knowledge-creating company. It is suggested that the newly created knowledge will, in turn, enhance the company's knowledge profile. The knowledge yield will subsequently reflect on the company's performance and market value. It is argued that certain elements, constructs and concepts on knowledge management could be presented as an integrative whole by a generic conceptual framework. Considerations to be taken into account when contemplating the implementation of knowledge management as a process is discussed.