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Knowledge Value Chain

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Knowledge value chain
Ching Chyi Lee and Jie Yang

Knowledge
value chain

The Chinese University of Hong Kong, Hong Kong
Keywords Knowledge management, Tacit knowledge, Explicit knowledge, Knowledge-based value systems, Competitive advantage

783

Abstract Introduces the knowledge value chain model as a knowledge management (KM) framework. The model consists of knowledge infrastructure (knowledge worker recruitment, knowledge storage capacity, customer/supplier relationship and CKO and management), the process of KM (knowledge acquisition, knowledge innovation, knowledge protection, knowledge integration, and knowledge dissemination), and the interaction among those components resulting in knowledge performance. Further to the discussion of knowledge value chain (KVC), the following viewpoint was proposed: KM guides the way a corporation performs individual knowledge activities and organizes its entire KVC. It was suggested that competitive advantage grows out of the way corporations organize and perform discrete activities in knowledge value chain which should be measured by the core competence of corporation. This article also provides a cross-reference for e-commerce researchers and practitioners.

Knowledge and knowledge management
Knowledge vs information
Knowledge refers to an observer's distinction of ``objects'' through which he brings forth from the background of experience a coherent and self-consistent set of coordinated actions (Zeleny, 1987). Through the process of distinction, individual pieces of data and information become connected with one another in a network of relations. Knowledge then is contained in the overall organizational pattern of the network and not in any of the components. Knowledge is more than information. Information is data organized into meaningful patterns. Information is transformed into knowledge when a person reads, understands, interprets, and applies the information to a specific work function. Knowledge becomes visible when experienced persons put into practice lessons learned over time.

One person's knowledge can be another person's information. If a person cannot understand and apply the information to anything, it remains just information. However, another individual can take that same information, understand it and interpret it in the context of previous experience, and apply the newly acquired knowledge to make business decisions or redefine a laboratory procedure. Yet a third person may take the same pieces of information, and through his unique personal experiences or lessons learned, apply knowledge in ways that the second person may never have even considered. Information is a component part but not the whole of knowledge (Machlup, 1982). Knowledge itself is a much more all-encompassing term that incorporates the concept of beliefs based on information (Dretske, 1981). It also depends on the commitment and understanding of the individual holding these beliefs, which are affected by people's interaction and the development of judgement, behavior and attitude (Berger and Luckmann, 1967).

Journal of Management Development,
Vol. 19 No. 9, 2000, pp. 783-793.
# MCB University Press, 0262-1711

Journal of
Management
Development
19,9
784

Tacit vs explicit
Tacit knowledge is that knowledge which cannot be explicated fully even by an expert and can be transferred from one person to another only through a long process of apprenticeship (Polany, 1962). Polany's famous dictum, ``We know more than we can tell'', points to the phenomenon in which much that constitutes human skill remains unarticulated and known only to the person who has that skill. Tacit knowledge is the skills and ``know-how'' we have inside each of us that cannot be easily... Show More

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