Assessing the Impact of Knowledge Use on
Process Output and Quality
by Seung Hyun KIM

Abstract

Today knowledge is viewed as more important production factor than traditional resources of capital, labor, and land. To effectively manage firms' knowledge assets with the aid of advanced technology, many companies have deployed knowledge management systems (KMS). However, there has been no systematic way to measure the impact of knowledge management systems. In this study, we investigate the impact of KMS usage as a production factor on the output level and its impact on quality of work by knowledge work groups. We not only find the direct positive impact of repository, data warehouse, and expert directory KMS usage on the production output measured by weekly sales in the retail grocery industry, but also find a positive impact on the quality of work measured by customer satisfaction. We further theorize that the value of KMS is contingent, and to the extent that knowledge obtained from KMS is unique and easily utilized compared to other sources, the impact of KMS utilization is greater. Our findings suggest that the output elasticity of knowledge inputs is greater when a group is endowed with little social capital, has access to fewer physical documents, is under less turbulent environments, and is in more distant locations from headquarters. We also find that the use of knowledge from repository KMS and data warehouse produce substitutive outcomes on the output level. This study contributes to the enhanced understanding of how and why KMS enables a firm to effectively manage knowledge assets to improve the job performance of knowledge work groups.

About the speaker

Seung Hyun KIM is a Ph.D. candidate of Information Systems at Tepper School of Business, Carnegie Mellon University. His primary research interests include knowledge management systems, customer relationship management systems, strategic value of information technologies, and economics of information security. He is currently working on several research projects related to knowledge management and customer relationship management sponsored by prestigious local organizations in Pittsburgh. In addition to the empirical research projects, his earlier work with an analytical approach was presented in International Conference in Information Systems (ICIS) in 2006 and is now under review at Information Systems Research. He received bachelor's degrees with majors in applied statistics, economics, and business administration from Yonsei University, Korea. Prior to join the doctoral program, he worked as an information security officer in the military and a senior officer of risk management in the financial industry.