Measuring knowledge management as a strategic resource

Abstract

This paper reviews the existing research on the measurement of the value of knowledge and the impact of KMS on organizations in the Information Systems, Finances and Management literatures to try and derive a better understanding of the strategic value of knowledge. The papers argues that the focus of existing metrics is at the operational rather than the strategic level and subsequently does not provide a sound basis to determine strategic value, a metric important in Finance. The paper proposes that the strategic value of knowledge can be derived from an aggregated sum of the metrics at the operational level supplemented by some measure of the alignment of knowledge value aggregates with strategic goals and plans and another measure of the opportunity cost of tacit knowledge. An exploratory exemplar of a Thai company is used to illustrate the framework. © Corbitt, Anurit, Le and Thanasankit 2005.