Journal article

KMPI: measuring knowledge management performance

Chang Lee K, Lee S, Kang I, Chang K, Lee S, Won I, Lee K, Lee S, Kang I, Chang Lee K, Lee S, Kang I ...see all

Information & Management, vol. 42, issue 3 (2005) pp. 469-482

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Abstract

This paper provides a new metric, knowledge management performance index (KMPI), for assessing the performance of a firm in its knowledge management (KM) at a point in time. Firms are assumed to have always been oriented toward accumulating and applying knowledge to create economic value and competitive advantage. We therefore suggest the need for a KMPI which we have defined as a logistic function having five components that can be used to determine the knowledge circulation process (KCP): knowledge creation, knowledge accumulation, knowledge sharing, knowledge utilization, and knowledge internalization. When KCP efficiency increases, KMPI will also expand, enabling firms to become knowledge-intensive. To prove KMPI’s contribution, a questionnaire survey was conducted on 101 firms listed in the KOSDAQ market in Korea. We associated KMPI with three financial measures: stock price, price earnings ratio (PER), and R&D expenditure. Statistical results show that the proposed KMPI can represent KCP efficiency, while the three financial performance measures are also useful.

Author-supplied keywords

  • Factor analysis
  • KMPI
  • Knowledge circulation process
  • Knowledge management performance
  • Logistic function
  • factor analysis
  • kmpi
  • knowledge circulation process
  • knowledge management performance
  • logistic function

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Authors

  • Kun Chang Lee

  • Sangjae Lee

  • In Won Kang

  • Kun Chang

  • Sangjae Lee

  • In Won

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