IMPACT OF KNOWLEDGE MANAGEMENT STRATEGY ON ORGANIZATIONAL LEARNING: A SIMULATION STUDY

The main objective of this study is to examine how an organization can implement knowledge management strategies that are best suited to its structure, culture and knowledge needs. We employ March’s (1991) model for organizational learning in the context of knowledge management and analyze the effectiveness of the codification and personalization strategies in different organizational settings. This paper develops insights into the effectiveness of knowledge management systems in different organizational environments and into the learning behaviors of individuals in the presence of these systems. The results indicate that KMS that codify the knowledge of only the superior performing organizational members are more effective than KMS that codify the knowledge of all the organizational members, though this discrepancy in performance decreases when the frequency of the codification process is low. Personalization strategies that enhance the ability of organizational members to locate other better performing individuals are found to be more effective in the long term than in the short term. However, when such personalization strategies are implemented in conjunction with codification strategies, the combined impact is not beneficial in the long term