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Purpose – The purpose of this paper is to describe a framework designed to assess the capacity of a knowledge management (KM) system to facilitate new knowledge creation. Design/methodology/approach – A longitudinal case study methodology, in a single company, Pratt Whitney Rocketdyne (PWR), was used to test the framework. Findings – New knowledge creation is best supported through mature KM systems that include all four modes of knowledge creation: combination, externalization, socialization, and internalization. KM systems and environments as a whole reach maturity by progressing through stages, which is presented as a KM maturity model. Research limitations/implications – By combining Nonaka\u27s knowledge creation theory with Wittrock\u27s generative learning activities, the paper illuminates both the why and how of new knowledge creation, in a way that can be applied to KM technological initiatives. One of the limitations of this study is the generalizability of the findings, which may be limited by the single case study method used. Practical implications – The framework provides a rubric against which both old and new KM initiatives can be assessed to determine whether they are capable of generating new knowledge. The maturity model provides a template against which organizations can map their progress towards a mature KM environment. Originality/value – Much of the literature on KM systems has focused on capturing knowledge and disseminating it. Few studies have provided practical, theoretically based advice on how to create new knowledge and what aspects of information systems can facilitate that creation. The framework and maturity model can serve as guides in that process

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The alignment between business strategies and IS resources is widely believed to aid firm peq5ormance. In this research, we review the historical development and current technological status of small and medium size enterprises (SMEs) in Japan over the past 50 to 60 years. Through the lens of the Resource-Based View of the Firm (RBV), we explored the role of information systems in Japanese SMEs and found that the adoption of information systems in Japanese SMEs consisted of extensive subcontracting networks which formed the basis of the Japanese production system and was an essential resource for contributing to successful implementation of global business strategies. This research also found that Japanese SMEs formulated and enacted strategies which leveraged information systems resources to enhance operations and strategic relationships and to establish dynamic capabilities.

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