1.0 Introduction
1.1 Background of the Study
In the last decade, the importance of knowledge has been highlighted by both academics and practitioners (Wu & Lin, 2009). Nowadays, knowledge is the fundamental basis of competition (Zack, 1999; Grant, 1996). Particularly tacit knowledge can be a source of competitive advantage because it is unique, imperfectly mobile, imperfectly imitable and non-substitutable. However, the mere act of processing knowledge itself does not guarantee strategic advantage. Instead, knowledge has to be managed (Zack 1999).
During the formative age of KM, Scarborough & Swan (1999) advanced that, firms that create new knowledge and apply it effectively and efficiently will be successful at creating competitive advantages. From a practice perspective, Zack (1999) further supported this view by stating that, firms are noticing the importance of managing knowledge if they want to remain competitive while Salojurvi, et al, (2002) advance the state by adding survival and growth. These realizations among organizations have seen companies everywhere begin to actively manage their knowledge and intellectual capital (DeTienne, et al, 2004).
Within the research community, three major factors are emphasized for successful implementation of KM thus; capabilities, processes and organizational performance (Bechman, 1999; O'Dell & Grayson, 1999; Demarest, 1997). Nonaka (1995) opined that KM capabilities are organizational mechanisms for generating knowledge continuously. Stonehouse & Pemberton, (1999) added that, they can encourage acquiring knowledge, protecting knowledge and facilitating knowledge sharing in an organization. However, KM processes can be thought of as a structured coordination for managing knowledge effectively or the tasks and activities that are implemented to manage knowledge (Gold et al, 2001).
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