Strategic Knowledge Management: A Comprehensive Business Overview

This report delves into the core concepts of strategic knowledge management, emphasizing its vital role in business development. It explores key components such as knowledge management, communities of practice, performance measurement, and intellectual capital, highlighting their significance in achieving competitive advantage and long-term goals. The report examines the distinction between tacit and explicit knowledge, illustrating their respective roles in organizational learning and innovation. It presents real-world examples of knowledge management systems and discusses the challenges and benefits associated with communities of practice, including leadership, knowledge barriers, and conflict resolution. Furthermore, it details the importance of performance management and intellectual capital, including social networking, in fostering business growth and market success. The report concludes by underscoring the interconnectedness of these elements in building a robust and adaptive business strategy.

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Strategic thinking requires a strong strategic knowledge base because without that the
strategic thinking would lose its actual meaning as the strategies based on the knowledge.
Many business structures defined to evaluate the significance of system of knowledge in the
business area also the application of business design system and strategic system thinking.
Generally, the system focuses on the four main pointers usually named as the knowledge
management, communities of practice, performance measurement, and the intellectual capital
and social networking these actually help the organisations or the business firms to get a
competitive advantage and the competitive edge in the market for the achievement of the
long-term goals of the business. Four aspects of the business development generally
considered as weapon against the competitors of the firm in the market or the business
environment (Hislop, Bousa, and Helms, 2018). Knowledge management here is not just
about maintaining the knowledge but to sustain its role and value in the organisation for long-
term period. Communities of practice basically are the groups of learners who share the same
concern or something in common that they do and learn something new or gain knowledge
according to concern by interacting regularly (North and Kumta, 2018). The other aspect
named performance measurement is been adopted by various organisations for the
measurement of performance level of the individuals or the employees of the organisation.
There are several indicators undertaken by several companies for the performance
measurement of the members of the company (Hwang, Lin, and Shin, 2018). The fourth
aspect of the strategic knowledge management is the intellectual capital which is basically the
intangible value created by the business firm in terms of the goodwill, employee satisfaction
with the organisation and the market relations with the customers of the company is
intellectual value of any business organisation or the firm.
The base of creativity is the knowledge and without which nothing achieved in terms
innovation and invention. The accurate measurement of knowledge however is not possible

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being an intellectual asset for the organisation, thought the sustaining it considering as an
innate value for the organisation and the role it plays in aspect for the development of the
organisation (Tomkin, Beilstein, and Morphew, 2018). The knowledge management here
means to grow business and to get the competitive edge in the market through the
enhancement of knowledge in respect of the innovation and invention in the business. As
strategy is a product of knowledge this directly depicts how significant it is to update with
knowledge regarding the business areas in the business. The technical strategies based on the
level of knowledge a firm or a company holds (Bontis, Ciambotti, and Palazzi, 2018). The
knowledge management is generally categorised as tacit and the explicit tacit means the
knowledge derived from the personal experiences derived from the jobs delivered and by
interacting with the people. In order to gain more knowledge, these are actually very difficult
to codify and extract as based on individual’s personal instincts and is specific in the context,
which can be quite beneficial for the overall development of the company. The tacit
knowledge also known by the word implicit knowledge as implicit used as the synonym for
the tacit (Secundo, Massaro, and Dumay, 2018). The other category is the explicit knowledge
refers to the digitized or the codified knowledge. This can only be extracted through books or
any documented source and is not based on any kind of experience which is directly extracted
from some source other than human mind is considered as the explicit knowledge is in form
of documents, books, memos and reports and all the secondary resources are to get the
explicit knowledge. Certain organisational examples of knowledge management include the
ever note, insta-cart, and canva these three are known for the best knowledge management
organisational examples, these are recognised as organisations with proper knowledge
management which provides the firm to step a level higher in terms of development and
growth (Abualoush, Masa'deh, and Bataineh,2018,).

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In 1991, Lave and Wegner introduced the concept of Communities of Practice, which
referred to the groups of people who share a concern and learn something new by interacting
among each other and discussing about the concern they share among themselves (Massaro,
Dumay, and Garlatti, 2018). The primary purpose of the same is to bring up the ideas of
different people on the same interest or the concern in order to practice the flow of
knowledge in the organisation in the business. As the goal of the organisation, is to enhance
the practice, also the communities of practice help to increase the expertise among the
workers of the organisation. This will help to enhance the practice and will help to gather
knowledge and to look over at the different perspectives of the different people (Trequattrini,
Lombardi, and Lardo, 2018); it can also act as a source to derive more knowledge in respect
to the common interest shared by the people of the community practicing the learning skills.
With the ultimate purpose of forming up the communities is to gain knowledge and to
enhance their abilities to learn to use the same for the accomplishment of the common
objective of the company. There are also various challenges faced while maintaining these
communities because people with different thoughts and perspectives are involved in the
same at times becomes the reason for the conflicts in the communities. Communities of
practice actually allow people to have collective learning with the main domain to enhance
the learning skills by sharing the knowledge and to improve their practice. The challenges
face by the people being in the community avoided by maintaining peace and giving every
member equal importance to put up their ideas forward. The major challenges include the
knowledge barrier, leadership challenges and the conflict of ideas is truly a matter of concern
because it creates the most chances or the probabilities of disputes and the conflicts among
the members of the group. As the growth and development of any organisation depends on
the part of knowledge owned by the firm in context to the market environment because that is
only the relevant information required for the same. The communities of practice formed in

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concern to develop ideas and to increase the knowledge and perspectives of different
members of the group as everyone tend to share their part of knowledge. The idea of forming
these kinds of groups has developed in order to develop the minds of the employees of the
organisation (Knoke, 2018). The communities or these groups also help to build the team
spirit among the members by working on the same concern and pitting forward the ideas to
solve a common concern regarding which the communities are being formed (Ivy, Mckeever,
and Perenyi, 2018).
The performance management is the examining the performance level of any individual or
the members of the organisation as this helps to evaluate the overall performance of the
company because the level of individual performance in the organisation contributes to the
overall development of the firm in the market (Macarthy,2018). The performance of the
individual employees reviewed with the assistance of the performance measurement concept.
There are various indicators indicate the performance level of the members of the
organisations. The indicators like the KPI’s are primarily the source of performance
measurement in the organisation. The idea of performance measurement focuses on the aim
of the optimum utilisation of resources of the resources because it takes a lot of money and
hard work to get the same implemented in the company. This drives the motive to use them
optimally for the best results and performance measurement helps to achieve the same by
measuring the performance of any individual, group, and employees of the company
(McDavid, Huse, and Hawthorn, 2018). As it says that for any kind of improvement you need
to measure what expected in terms of the improvement. The same applied here in context of
the performance measurement as it a form of getting feedback it can be either positive or
negative depending upon the level of performance done by the individual or the group. There
are various measures for the measurement of the performance again depending on the type
and level of work. For example- money is termed as the measurement of profit of the

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organisation, the target of goods measured by the amount of production and the performance
of the employees is measure through the incentives earned by the employee. The controlling
process applied on the same as it involves the measurement and the measurement done only
against the standards set by the upper level management team of the company or the
organisation the performance measurement done in all types of fields involving cost &
budgeting, safety and the inventory turnover. Several standards are according to the type of
work to keep record everything and every activity. To project the future performance of the
organisation, various financial targets establish to procure the best results against the
standards. If the results achieved are, negative then it clear that the work done or performed
by the company is below the standards and is considered as the failure of the targets with
respect to the goals and objectives of the company (Kearney, 2018), KPI’s are the indicators
used for the measurement and accordingly the corrective decisions are decided. Organisations
using the performance indicators include the majors MNCs such the IBM, Delliotte, KPMG
etc.
The intellectual capital and the social networks are the important as aspects of the business
development. The intellectual capital here refers to the goodwill of the organisation and the
employee satisfaction refers to the accomplishment of the employee’s individual interests
through the means of work provided by the organisation. Along with the satisfaction of the
employee, satisfaction of the customer also helps to build the intellectual capital for the
business in the organisation (Hatry, 2018). The social networks of the firm assist in building
up the market relations of the firm with new customers providing an opportunity to the firm
to grow the market area served by the organisation. There are various examples of intellectual
capital include the human intellectual capital, external intellectual capital, and structural
intellectual capital. The human intellectual includes the deep insight in to the type of work
and the professional experience, eventually helps to overcome the external challenges arising

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inside the organisation (Beer & Micheli, 2018). The value generated by the human resource
of the organisation in the market is a part of the human intellectual capital. The external
intellectual capital refers to the relations of the members of the organisation with the
customers, suppliers, partners and copywriters is generally categorised under the external
intellectual capital. The structural intellectual capital includes the policies, regulatory
framework, information systems, databases, cultures etc. these are a part of the intellectual
capital of the business. The development of the intellectual capital is only possible with the
adequate knowledge, team spirit, and proper performance for which knowledge management
and maintaining the communities is very important. Along with the intellectual capital, the
social networks play a major role in the development of the same. The vast social networking
of the organisation helps to grab a greater market share and to increase the customer base the
information regarding the leading trends of the industry is adapted from the social media
platforms. The information about the products and the services offered by the firm can
publish on the internet to provide the customers with the useful knowledge about the goods of
the company (Muda, Roosmawati, and Siregar, 2018). This provides the company a huge
opportunity to grow and develop the market share of the company among the competitors.
Social networks are also useful to discover if any misconduct of the activities taking place or
performed by any employee or the member of the organisation. The intellectual capital and
the social networking are all inter-related with each other as it based on the knowledge
management, performance management, and the communities of practice formed for the
development of the social networks within the company and later on use that for the
accomplishment of the objectives and targets of the organisation. As it says, the social
networks are a kind of asset of the company, which helps to increase the value of the
organisation. With emerging development of the social media network, various organisations
are putting up the information regarding the organisation on the internet to provide the

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opportunity to the customers to access the firm through the online platform (Bourne, Melnyk,
and Bititci, 2018).
The essay concludes that with the development of these four aspects of the strategic
knowledge management that eventually helps to manage the growth and development of the
company. Every individual aspect has its own importance without which the overall
enhancement will be tough to achieve. The knowledge management is the base of every
aspect of the organisation as in the absence of the same it won’t be possible for the company
to actually step ahead to next level, the communities formed are also been considered because
of the intention of exchange of knowledge and working at the learning skills of the members
of the organisation. The performance measurement mentioned above considered as the major
aspect that contributes to the development as the capacity of the working force of the
organisation in increased because of the feedback provided by the upper level management of
the firm. The examples of the several companies using the KPI indicators is also been
mentioned. The importance of the intellectual capital and the social networks is mentioned
and the inter relation of all the four aspects is discovered. None of the same expected to
perform sole because of the inter-relation and linkage among them regarding the achievement
of organisational goals and targets.

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