Knowledge management systems successfully supporting e-business and improv- ing e-business performance have to satisfy several requirements. First, they have to support the chosen e-business model(s). Second, they have to cause improvements through redesign of e-business processes. Furthermore, more advanced stages of knowledge management technology in terms of codification strategy will be more powerful and successful. These are some of the research propositions presented in this chapter, which represents a rich knowledge base for future empirical studies. The avenue opened up through this chapter is for future research to look for situations, rather than generalizations, in terms of the contingent approach to management.
As a conclusion, some important causal influences between knowledge management and IT outsourcing relationships are mapped in the causal loop diagram in Figure 5.8. Causal loop diagramming is described by Sterman (2000) and presented as a tool by www.vensim.com.
More knowledge sharing will increase customer satisfaction, leading to higher e-business success. Learning from the success, new knowledge is created, caus- ing modifications and extensions to the e-business model. The revised e-business model requires process redesign, and one important aspect of redesign will be more knowledge management technology. More technology for knowledge management improves knowledge sharing, leading to even higher customer satisfaction.
Figure 5.9 illustrates two positive feedback loops from Figure 5.8. When knowledge sharing increases, customer satisfaction increases, leading to greater e-business success, making it more attractive to continue the digital transformation, leading to even more knowledge sharing. The other loop says that when knowledge shar- ing increases, more know-what, know-how and know-why lead to greater process redesign, making new applications of knowledge management technology, leading to even more knowledge sharing.
Effective knowledge management in electronic business is dependent on a knowl- edge-centered culture. Organizational culture is believed to be the most significant input to effective knowledge management and organizational learning in that cor- porate culture determines values, beliefs and work systems that could encourage or impede learning (knowledge creation) as well as knowledge sharing (Janz &
Prasarnphanich, 2003). Therefore, an organization’s culture should provide sup-
Knowledge Sharing Digital
Transformation
E-Business Model
Process Redesign
Knowledge Management
Technology E-Business
Success
Customer Satisfaction
Knowledge Creation
Figure 5.8. Causal loop diagram for knowledge management in e-business
port and incentives as well as encourage knowledge-related activities by creating environments for knowledge exchange and accessibility.
Questions.for.Discussion
1. What is the value configuration of each of the eight e-business models?
2. How can knowledge management systems improve the performance of an e-business?
3. Which IT infrastructure services are needed when a content provider wants to improve knowledge sharing with customers?
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Figure 5.9. Positive feedback loops in the causal loop diagram
Knowledge Sharing
Process Redesign Knowledge Management
Technology Customer
Satisfaction
E-Business Success
Digital Transfrmation
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