Frontiers for the Codification of Knowledge

Although knowledge management techniques have been discussed and developed substantially during the last several years, only moderate success has been reported in terms of measurable business results. We show how human information exchange can be mapped to the investment processes of the modern portfolio theory. We argue that the presented theory is the major reason for the rather limited success of the computer-based techniques used for codifying knowledge. The theory should be taken into account during the implementation of knowledge management programs.