Abstract

In this paper we evaluate a KMS-enabled KM initiative in a Swedish MNC. Using the concept of “Net Benefits” as our dependent variable we describe and explain why a KMS-enabled knowledge sharing initiative worked in some plants and failed in some other plants of the same firm. The study is divided into two parts. The first is quantitative and aims to outline, 1) whether knowledge sharing has occurred, 2) the effects of knowledge sharing on cost items and price, and 3) the effects on profit. The statistical findings imply that the following phases must be accomplished, 1) knowledge sharing through the use of the KMS, 2) managing the conversion of knowledge, and 3) improving profit margins. Using a qualitative case study we derived analytically eight factors, associated with different phases, appearing to distinguish between success and failure in sharing knowledge and converting it into financial performance: 1) the local perception of the sharing initiative, 2) aspiration and strategic ambitions, 3) the view on internal competition, 4) the view on the nature of the knowledge shared, 5) initiative management and control, 6) local communication, 7) the ability to manage the strategic implications of learning, and 8) corporate control mechanisms.

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