An empirical investigation of KM styles and their effect on corporate performance

Abstract

For years, companies have strived to manage knowledge more effectively, the primary motivation being improved business performance. However, not all knowledge management (KM) styles may be equally effective. This paper analyses how various KM styles affect performance. Fifty-four firms were selected as the sample base for an empirical test. The test results are presented here. It was found that KM methods can be categorized into four styles: dynamic, system-, human-oriented, and passive. The emphasis of the dynamic style is on both (i) knowledge reusability through information technologies and (ii) knowledge sharing through informal discussions among employees. This dynamic style results in higher performance. Human- and system-oriented styles do not show any difference in terms of corporate performance; the passive style is less effective. This outcome is in line with previous observations that both tacit and explicit knowledge are important in capitalizing on corporate knowledge. (C) 2002 Elsevier Science B.V. All rights reserved.