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JournalofUS—ChinaPublicAdministration,ISSN 1548-6591
May2012,Vo1.9,No.5,570-577 … N
A FrameworkforCompensatingtheSMEExternalKnowledge
PekkaKess
UniversityofOulu,Oulu,Finland
Thearticleaddressestheissuesofknowledgemanagement(KM)from theexternalknowledgepointofview.
Knowledgehasbeenraisedtobethekeysuccessfactororkeyresourcetoorganizationsofallsizes.Knowledge
worker,knowledgeintensivebusinessservicesandknowledgesocietyarecommonlyusednowadays.Nevertheless,
itishard to imaginethatevery organizationcan possessallthenecessary kn owledgetoguaranteesuccessful
operations.Externalknowledgeanditseffectiveusecanhelpanorganizationovercomemanydifficultiesatvarious
stagesofitslifecycle.Theunderlying challenge isto definewhatform orshapeofexternalknowledgean
organizationshouldusetoimprovethelikelihoodofbusinesssuccess.Theinitialfindingsandconclusionindicate
thetendencyforstart—upcompaniestoemphasizetacitknowledgemoreinordertohelpovercomebusinessbarriers.
On theotherhand,asacompany progressesthroughoutitslifecycle,itappearstorelymoreon itsextemal
knowledgeintermsofexplicitknowledge.Aninterestingresearch questionishow thecompanycanvaluethe
externalknowledgeandhowtopayforit.Smallnadmediumenterprises(SMEs)aretypicallyshortoffinancial
resources.Thecashflowdoesnotnecessarilyallowroomofrlargeinvestmentsinexternalknowledgeprojects.The
paper utilizes the eralierdeveloped taxonomy of externalknowledge and studies the vraious options of
compensatingtheacquiredknowledgeforimprovingthebusinessperformanceoftheSMEs.Theresearchutilizes
multiplecasestudiesandproposesawiderinternationalquantitativereserachtodraw aricherpictureoftheissue.
Keywords.knowledgemnaagement(KM),companylifecycle,externalknow
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