Investigating the management of knowledge for competitive advantage

Abstract

PurposeThe purpose of this paper is to develop and apply a framework that examines the effectiveness and efficiency of managing knowledge in organizations for competitive advantage.Design/methodology/approachReviews knowledge management and strategic cost management literatures to identify key elements that determine and facilitate the enhancement of competitive advantage. Develops a cost‐knowledge management (CKM) framework that integrates these elements and enables the analysis of how knowledge utilization in organizational activities can be made more effective and efficient.FindingsThe CKM framework is usefully applied to a sample of four Italian firms operating in the mechanical industry. Both the results of applying the CKM framework and the insights that are generated are discussed.Practical implicationsThe CKM framework allows organizations to analyze the activities performed in terms of cost structure and cost drivers, value created, and knowledge utilized, the latter in terms of knowledge specificity and type. The framework can also be used to highlight specific areas of effectiveness improvements in terms of identifying which activities should be leveraged and how knowledge can be better mobilized. In addition, the framework enables an assessment of the non value added but required and waste elements of organizational activities and the specific drivers of costs in these activities, thereby enabling an identification of efficiency improvement opportunities.Originality/valueThis paper integrates strategic cost management and knowledge management perspectives to examine how organizations can usefully analyze and improve the effectiveness and efficiency of managing knowledge for competitive advantage. Thus far, this integration has not occurred in either literatures.

Organizational Culture and Knowledge Sharing Behavior: Examining Serial Mechanisms

“…Knowledge sharing influences the performance of organizations in both public and private sector (Silvi & Cuganesan, 2006). Despite the fact that volume of research is increasing, knowledge sharing remains a challenge for two obvious reasons.…”

An Analysis of the Efficiency of Sourcing Knowledge-based Services in the United States Air Force

“…According to Silvi and Cuganesan (2006), an organization must identify "knowledge specificity and the knowledge type (tacit versus explicit)" in order to understand which resources to focus on when seeking out knowledge as a competitive advantage (p. 312). After examining other cost drivers within an organization, management can identify what activities an organization can leverage and how knowledge resources should be used (Silvi & Cuganesan, 2006). Figure 4 depicts the cost-knowledge management framework mentioned previously.…”

An Analysis of the Efficiency of Sourcing Knowledge-Based Services in the United States Air Force

“…According to Silvi and Cuganesan (2006), an organization must identify "knowledge specificity and the knowledge type (tacit versus explicit)" in order to understand which resources to focus on when seeking out knowledge as a competitive advantage (p. 312). After examining other cost drivers within an organization, management can identify what activities an organization can leverage and how knowledge resources should be used (Silvi & Cuganesan, 2006).…”

“…After examining other cost drivers within an organization, management can identify what activities an organization can leverage and how knowledge resources should be used (Silvi & Cuganesan, 2006). Figure 4 depicts the cost-knowledge management framework mentioned previously.…”

“…Figure 4 depicts the cost-knowledge management framework mentioned previously. (Silvi & Cuganesan, 2006) Additionally, managers must consider how to collect the knowledge within the organization. Although internal sources of knowledge are pivotal in transferring business-level knowledge to executive level understanding, the internal sources can also be biased (Henderson, Sussman, & Thomas, 2001).…”