Knowledge Management: KM
This article is mainly about the relationships between KM and Innovation.
Innovation is highly dependent on KM. It can be said that there is no innovation without new ideas and new knowledge creation is a pre-requisite condition for innovation. Innovation is one goal of KM.
You need to base on KM to make Innovation. If you have enough knowledge and you know how to arrange it, you can create innovative ideas and apply them into real.
The article also mentioned about the effects of Innovation on Firm performance. Innovation is considered as a source of a firm competitiveness. Successful innovative activities lead to improvement in terms of new products / services introduction, better quality, reduces cost, and as a result larger market share & higher profitability. It can be said that Innovation is key element to help a firm can survive in the market.
For example, Ernst & Young used Innovation to lead to firm performance through standardization of services and cost-cutting and how personalization knowledge management strategy implement. Meanwhile, Boston Consulting Group, McKinsey lead to firm performance through customizing their services and charging high fees. Numbers of empirical studies have found the effect of knowledge management on firm performance such as Darroch (2005), Calantine et al. (2002), Pang-Lo Liu et al. (2004).
Writer: Vu Thi Khanh Linh (No.12)
Source of the Article: “Strategic Knowledge Management, Innovation and Firm Performance: An Empirical Study in Vietnamese Firms” – Journal of Economics and Development, Vol.16, No.1, April 2014, pp. 60-73
