Institutionalization of Knowledge Manage ent in Sri Lankan Business Entities

Abstract

The knowledge-based theory of the firm suggests that know ledge is the organizational asset that enables sustainable competitive advantage in competitive environments. The emphasis on knowledge III today's organizations, especially in the west is based on the assumption that barriers to the transfer and replication of knowledge people carry in their h ads endow it with strategic importance. Many organizations are developin information systems designed specifically to facilitate the sharing and i tegration of knowledge. Such systems are referred to as Knowledge Manage ent Systems (KMS). The benefits of KM have been empirically proven in the gl bal business realm. Because the concepts of KMS and institutionalization f knowledge formally are just beginning to appear in Sri Lankan business organ zations, little research and field data exists to guide the development and impl mentation of such systems. Knowledge, to be leveraged as a competitive advantage, has to be instilled or institutionalized in to the culture and work ethic of rganizations there is no hard evidence to show that formal institutionalize knowledge management practices or s~ems exist in Sri Lankan business rganizations. However some business entities in the country have proven the rselves to be proactive and strategic in their approach and decision making which suggests the existence of practices to make best use of what the organizat ons "know". This study provides an analysis of the current understanding f knowledge management amongst Sri Lankan businesses, the prevalent practices of knowledge use and the extent of institutionalization of KM through the study of ten high performing organizations.