Knowledge-Sharing in Value-Chain Networks: Certifying Collaborators for Effective Protection Processes (2003)

INTRODUCTION Three major trends have come together at the start of the new millennium, raising the stakes for firms seeking to compete in the new economy. Initially, knowledge management (KM, also referred to as intellectual capital) poses the idea that every organization holds knowledge in the minds of its personnel that can be identified, collected, and managed for competitive advantage. Relatedly, modern internet technology has enabled knowledge management to be more easily accomplished while also taking the concept outside of the firm's borders. With advanced data management capabilities, instant communication throughout a network, and a mechanism to tie together disparate computer systems, cutting-edge firms are able to use the knowledge of their entire value chain as a competitive weapon. The third major direction in business dampens this enthusiasm regarding knowledge management and e-business. Competitive intelligence (CI) has also grown apace over the past decade. Legitimate competitive intelligence activities pose a particular threat to internet-driven knowledge-sharing networks for a number of reasons, but the principal problem is more knowledge, in more heads, under less control, and in digital form. Competitive intelligence activities are on the rise and these types of systems are particularly subject to attack. The question is what to do? On the one hand, knowledge management and e-business networks both offer a lot to firms seeking to differentiate themselves from competitors. On the other hand, such systems open firms up to competitive intelligence efforts from those same competitors. Can the systems be constructed so as to be useful, but to protect firms from CI incursions? Central firms in KM/e-networks obviously need to monitor what information is passed on to which suppliers, vendors, research or manufacturing partners, customers, etc. In order to keep control of the systems, however, and not arbitrarily favor one collaborator over another, we suggest that a certification system might be appropriate. Such a system would alert collaborators as to the steps necessary to qualify for various levels of participation within the network. Certification would also make the decision objective, hopefully lessening any tensions that may come from collaborators not immediately qualifying for higher levels of participation. LITERATURE REVIEW Knowledge management grew out of practice, with academics latching on to the topic only in the last few years (Edvinsson & Malone, 1997; Davenport & Prusak, 1998). The basic idea is that all organizations possess a certain amount of tacit knowledge, knowledge held by individuals that helps them or the firm perform better. If this knowledge can be made explicit, captured by the firm so that it knows what knowledge assets it holds, the firm benefits (Nonaka & Takeuchi, 1995). Explicit knowledge can be organized and then further leveraged by distributing it to other employees who can, then, also perform better. Traditionally, KM is divided into three categories (Bontis, 1998). Human capital is individual knowledge about how to perform a job. Structural capital is knowledge about how to organize organizational resources (capital, labor, or even knowledge) to best effect. Collaborative capital is knowledge about how to deal with friendly parties outside the firm (suppliers, vendors, customers, etc.). Competitive capital has also been suggested by some--knowledgeabout competitors and how to compete with them--asan additional source of a knowledge asset (Rothberg & Erickson, 2001). As noted, the point of KM is to identify tacit knowledge assets in these various categories. If the firm can capture this tacit knowledge and make it explicit, the entire organization can benefit from it. The result is a firm managing its knowledge resources better than their competitors, leading to superior performance in the marketplace. Into this KM mix has come the internet revolution of the past 6-8 years. …