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Km And Business Strategy

Mehrdad Madhoushi
Associate Professor
Department of Business Management,
Mazandaran University,
Babolsar, Iran

TEL: 0098 (112) 5245415
FAX: 0098 (112)5222179
E-mail: mmadhoshi@yahoo.com
Ehsan Shahsavand
MA, Mazandaran University,

September 30, 2009

Knowledge Management and Business Strategy:
the Mutual Impacts

Abstract

Although the organization business strategy is a very familiar concept in the literature, the advent of knowledge management (KM), have brought up new standpoints to the context. Knowledge management process of an organization is mutually affected by its business strategy itself. In this paper we illustrate the interplay of KM and business strategy.
Keywords: Knowledge Management (KM), Business strategy, Organization Knowledge Bas, Groupware tools.

1. Introduction
About six years ago, the concept of knowledge management moved from the world of academia into the realm of corporate business strategy [Heath James, 2003].
Although the organization business strategy is a very familiar concept in the literature, the advent of knowledge management (KM), and gradually revealing it’s subsequent, wide-range impacts have brought up new standpoints to the context. In the other hand, creation, validation, presentation, distribution and application (in general: managing) the intellectual capital of an organization is affected by its business strategy as the overall framework for the firm’s all activities.
As Figure 1 suggests, knowledge management initiatives are unlikely to be successful unless they are closely integrated with business strategy [Clarke Thomas 2001]. Knowledge-based resources and capabilities need to be utilized to develop the firm’s business strategy. In the same way identifying which knowledge-based resources and capabilities are valuable, unique and inimitable and how these resources and capabilities support the firm’s product and market positions can be clarified by the...