[German title: Individuelle Anreize für den Erfolg interner Wissensmärkte ausgleichen]
Understanding the failure of internal knowledge markets: A framework for diagnosis and improvement
Michael Brydona, , and Aidan R. Viningb
Information & Management
Volume 43, Issue 8 , December 2006, Pages 964-974
Abstract: In writing this paper, our objective was to use the concept of internal market failure to explain why many knowledge management initiatives fall short of expectations. We re-examined the conventional view of knowledge as a pure public good and developed a typology of knowledge as a heterogeneous public good. This permitted us to identify the different sources of internal market failure that impeded knowledge creation and sharing within firms. We then analyzed generic managerial responses to internal market failure and showed how the effectiveness of each response was limited by the nature of knowledge as a tradable commodity. We concluded by presenting a preliminary framework for knowledge management based on the enforcement of dynamic internal property rights. The objective of a dynamic response to internal knowledge market failure was seen as an attempt to balance individual incentives with the need to create and share knowledge throughout the organizational.
Keywords: Knowledge management; Internal knowledge markets; Public goods
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© 2006 Elsevier B.V. All rights reserved.