Knowledge Management Systems and Customer Knowledge Use in Organizations

The objective of the research was to understand how customer knowledge was used in an organization and the role knowledge management systems (KMS) played in this use. Traditionally, organizations have relied on internal knowledge to shape their corporate strategy. Recently however they are tapping new sources of knowledge that are external to the firm. One important source of organizational knowledge is a company’s customers, as they present a source of knowledge that may provide new insights, innovations and ideas that are not necessarily found within the organization. The study examined the perceptions and beliefs of customer knowledge held by an organization’s employees, the types of customer knowledge available to the firm, the use of a KMS, and its impact on an organization’s use of knowledge. We posed the question of how these perceptions and beliefs influenced the types of customer knowledge available and the design and implementation of a KMS. Furthermore, we investigated the impact of customer knowledge types and knowledge management systems on how an organization uses customer knowledge in its regular operational routines. To answer these questions, a case study was conducted in a Canadian health care systems organization. By taking the approach that individuals in an organization are the key to sharing knowledge with customers, this research was able to gain an in-depth understanding of how employees view customer knowledge, including both positive and negative attitudes towards this new source of knowledge. The types of customer knowledge available to the study organization were identified, as were the ways that the newly implemented KMS helped and hindered knowledge sharing. The results of the research demonstrate how the types of customer knowledge available to an organization can be categorized by the perceived quality and the perceived accessibility of the knowledge. These findings contribute to the field of knowledge management by moving towards a theory of how customer knowledge is used by an organization, and how internal and external factors affect this use. Furthermore, this study raises awareness of the importance of a KMS in managing customer knowledge, including key aspects of its design and implementation.Ph