Developing a Model of Return on Investment in Knowledge Management

Mohammad Hasanzadeh, Soraya Daj

Abstract


The importance of knowledge management as a competitive advantage is evident to everyone, and it is considered one of the critical factors of successful organizations. The capitalist view of knowledge management has led to the measurement of the return on investment resulting from it, and the return on investment has been recognized as a financial indicator for measuring knowledge management. What are the main components of knowledge management? Have components the same coefficients? The impact of the components is different and has different values. In order to achieve this importance, the present study was conducted to develop a return on investment model in knowledge management. This Practical research is mixed method, and in the form of exploratory schema in three stages, qualitative (using grounded theory and the use of interview tools), quantitative (using a descriptive method, a survey using questionnaire tool), quantitative (using a descriptive method, a survey using questionnaire tool) has been done. Each method is analyzed using, respectively, MAX QDA and SPSS software. The findings of the first stage of the study include identifying the benefit and costs of knowledge management. Then, the components validity is obtained, and then in the third stage, a coefficient is assigned to each of them. Identifying costs and benefit Components is a first stage achievement. Experts measured the validity of each component to identify components accurately. Furthermore, finally, in the third stage, each of these components was assigned a coefficient. The development of a new formula, taking into account each of these coefficients, is considered research innovation.

https://dorl.net/dor/20.1001.1.20088302.2021.19.2.9.7


Keywords


knowledge management, return on investment, cost of knowledge management, benefit of knowledge management, model of return on investment

Full Text:

PDF

References


-Akhavan, P., Jafari, M., & Fathian, M. (2005). Exploring the Failure Factors of Implementing Knowledge Management System in the Organizations. Journal of Knowledge Management Practice, 10.

-Branes, S., & Missing Puzzle Piece Consulting. (2013). Expert analysis 1: Return on investment and KM. In H. Roche, Measuring the ROI of Knowledge Management (p. 85). London: Ark group .

-Cohen, D. (2006, December). What's your Return on knowledge? Retrieved from Harvard Business Review: https://hbr.org/2006/12/whats-your-return-on-knowledge

-Cohen, j. (2017, Aguest). Knowledge Management and ROI. Retrieved from Linkedin: https://www.linkedin.com/pulse/knowledge-management-roi-jim-kochan

-Dalkir, K. (2017). Knowledge Management In Theory and Practice. London: The MIT Press.

-group of BEI Consulting. (2003). Estimating Return On investment (ROI) For Knowledge Management (KM) Initiatives: An Infomation Technology (IT) Perspective.

-BEI Consulting Harvard Computing Group Report. (1998). Knowledge Management - Return On Investment . Harvard.

-Hawley, T., & Arup Consulting. (2013). Expert analysis 4: Justifying the investment in knowledge management. In H.

-Roche, Measuring the ROI of KnowledgeManagement (p. 85). London: Ark group.

-HIMSS group. (2013). Experiences and Metrics for Calculating Return on Investment.

-Iske, P., & Boekhoff, T. (2002). The Value of Knowledge Doesn't Exist A Framwork for Valuing the Potential of knowledge. International Conference on Practical Aspects of Knowledge Management, 632-638.

-Kankanhalli, A., & C.Y Tan, B. (2005). Knowledge Management Metrics: A Review and Directions For Future Research. International Journal of Knowledge Management , 20-32.

-Lee, O.-K., Choi, B., & Lee, H. (2020). How do knowledge management resources and capabilities pay off in short term and long term? Information & Management.

-Lopez, K. (2001, october). Measurment for KM. Retrieved from American Productivity & Quality Center: apqc.org

-Massingham, P., & Massingham, r. (2014). Does knowledge management produce practical outcomes? journal of knowledge management, 221-254.

-Resatsch, F., & Fiasst, U. (2003). Measuring the Performance of Knowledge Management Initiatives. Finance & Information Management.

-Robinson, H., Carrillo, P., Anumba, c., & Al-Ghassani, A. (2005). Performance Measurement in Knowledge Management. In

H. Robinson, P. Carrillo, C. Anumba, & A. Al-Ghassani, Knowledge Management in Construction (p. 219). USA: Blackwell.

-Shujahat, M., Sousa, M., Saddam, H., Nawaz, F., Wang, M., & Umer, M. (2019). Translating the impact of knowledge management processes into knowledge-based innovation: The neglected and mediating role of knowledge-worker productivity. Journal Of Besiness Research, 442-250.

-Silvi, R., & Cuganesan, S. (2006). Investigating the management of knowledge for competitive advantage. Journal of Intellectual Capital, 309-326.

-Turner, G., & Minonne, C. (2010). Measuring the Effects of Knowledge Management. Electronic Journal of Knowledge Management, 161-170.

-Wickhorst, V. (2002). Measuring the ROI on Knowledge Management Systems. Performance Improvement Quarterly, 96-127.

-Zimmermann, K. (2003, April). Can you maesured return on investment? Retrieved from KMworld :https://www.kmworld.com/Articles/Editorial/Features/Can-you-measure-return-on-knowledge-9454.aspx


Refbacks

  • There are currently no refbacks.



E-ISSN: 2008-8310

   ISSN: 2008-8302