Knowledge Management and Information Technology: Enablers of E-Commerce Development

INTRODUCTION The economic development of African nations can be accelerated by improvements in Information and Communication Technologies (ICTs) infrastructure. The explosion in technology which ushered in the information age is the basis for defining power in the modern world. African countries economies can only thrive with an integral information technology and telecommunications infrastructure. Information and Communication Technologies provide the platform for development across economic and other sectors. ICT is not only an enabler of broad based social and economic development of education, health and governance, but also key enabler of sustainable human development in a more general sense. Information and Communication Technology (ICT) represent an opportunity to address the challenges of development to reduce poverty, especially, by a combination of wealth and job creation, and building capacity within government and community organizations. In order for local needs to be effectively expressed and managed, the skills and capacities of both individuals and institutions need to be developed to build on the potential benefits of improved information and knowledge transfer. When information is shared, it multiplies. This multiplication poses serious management challenges (Ballantyne, Labelle, & Rudgard, 2000). Knowledge and information are interconnected. This form the basis of the work of the Global Knowledge Partnership which "is rooted in the conviction that access to, and effective use of, knowledge and information are increasingly important factors in sustainable economic and social development for individuals, communities and nations; that the information revolution can be a positive force for empowering the world's poor; that effective action to assure the inclusion of the poorest individuals, communities and nations in the global information economy requires increased partnership and mutual learning among public, private and not-for-profit organizations" (Simmons, 2000). The effective use of information and knowledge, however, depend on the availability of an efficient information technology. This in turn accelerated the establishment of e-commerce in developing economies. This paper examines the relationship between knowledge, information, information technology and how they accelerate the development of e-commerce in developing economies, especially in Africa. LITERATURE REVIEW Knowledge and knowledge management are complex and multi-faceted concepts. Alavi and Leidner (2001) provides a review and interpretation of knowledge management literatures in different fields, presenting a detailed process view of organizational knowledge management with a focus on the potential role of information technology in this process. Knowledge management is the process of creating, capturing and using knowledge to enhance organizational performance (Bassie, 1997). It involves the management of the information, knowledge and experience available to an organization — its creation, capture, storage, availability and utilization — in order that organizational activities built on what is already known (Mayo, 1998). On the national level, knowledge management is the process of capturing a nation's collective expertise wherever it resides, and distributing it to wherever it can help produce the biggest benefits. Knowledge management is concerned with the exploitation and development of the knowledge assets of a country with a view to furthering the country's objectives (Ng & Li, 2003). The knowledge to be managed includes both explicit, documented knowledge, and tacit, subjective knowledge (Davenport & Prusak, 1998). Knowledge is the basis for sharing business information, maintaining business relationship and conducting appropriate business transactions. E-commerce is an electronic exchange of information or digital good, services and payments (Chen, 2001). …