Measuring the Contributions of Knowledge Management Systems to the Strategic Competitiveness of Organizations: A Review and a Model

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Why and how do Knowledge Management Systems (KMS) contribute to the strategic competitiveness of organizations? This paper reviews the literature and proposes a model in which KMS is viewed from three different perspectives: (1) crucial resource; (2) driver of absorptive capacity; and (3) innovation adopted by the organization. The paper critiques the method used by KMS researchers whereby co-variation of KMS and competitiveness is utilized to study the relationship between these variables. The model proposed here is a multi-stage process. The successful use of KMS generates intermediate outcomes that in turn impact the organization and produces improved strategic competitiveness. The different approaches to KMS and the stage-process allow for the unique attributes of knowledge systems, different from information systems. The advantages and limitations of the model are discussed.