Proceedings of the 3rd European Conference on Intellectual Capital

Increasing Knowledge Management Maturity in
Organisations: A Capabilities - Driven Model
Theodora Ngosi 1 , Markus Helfert 2 and Ashley Braganza 3
1
National University <strong>of</strong> Ireland, Maynooth, County Kildare, Ireland
2
Dublin City University, Ireland
3
Brunel University, Uxbridge, UK
Theodora.Ngosi@nuim.ie
markus.helfert@computing.dcu.ie
ashley.braganza@brunel.ac.uk
Abstract: Recent surveys conducted by academic researchers and industry practitioners suggest that
organisations still struggle to adopt knowledge management (KM). Success <strong>of</strong> KM initiatives is hampered by
several factors, for example: limited understanding <strong>of</strong> KM concepts. In this paper we argue that inadequate KM
maturity models undermine KM success. Maturity encourages clarity <strong>of</strong> epistemological assumptions and
judgements to plan and control <strong>the</strong> KM activities. This paper discusses how organisations investing in KM
initiatives can increase KM maturity to develop knowledge assets and to maximise <strong>the</strong> use <strong>of</strong> knowledge that
adds value in various functions. The features and limitations <strong>of</strong> use <strong>of</strong> selected extant maturity models applied in
KM are examined. The paper makes two key contributions to <strong>the</strong> KM field. One, it introduces <strong>the</strong> Information
Technology-Capability Maturity Framework (IT-CMF) as a means <strong>of</strong> mapping KM maturity. Two, <strong>the</strong> paper
develops a capability-driven KM maturity model, based on <strong>the</strong> IT-CMF. Drawing upon <strong>the</strong> dominating qualities <strong>of</strong>
this model, one implication for practice is to develop different viewpoints <strong>of</strong> capabilities for KM initiatives. The
paper concludes by providing explanations <strong>of</strong> increasing KM maturity, based on an interpretive lens.
Keywords: knowledge management, maturity models, knowledge management capabilities, information
technology-capability maturity framework
1. Introduction
The rise <strong>of</strong> <strong>the</strong> knowledge economy over <strong>the</strong> past two decades has propelled organisations to drive
for ready access to knowledge for increased growth performance and improving efficiency,
effectiveness, innovation, and production (Al-Ali, 2003; OECD, 2005). Approximately 80% <strong>of</strong> large
companies have a formal knowledge management (KM) program (Skyrme, 2002; Mertins et al.,
2010). A KM spending report also indicates that, in <strong>the</strong> United States companies were expected to
spend at least $US85 billion on KM in 2008, an increase <strong>of</strong> nearly 16% from 2007 (AMR Research,
2007).
Knowledge is considered <strong>the</strong> key strategic factor <strong>of</strong> competitive advantage (Darroch & McNaughton,
2002; Ferrari & Toledo, 2004), and <strong>the</strong> main source for value creation (Earl, 2001). Moreover, many
organisations are beginning to grasp <strong>the</strong> overlaps <strong>of</strong> this knowledge market-based paradigm with
intellectual capital (Marr & Ross, 2005). Various scholarly works (such as Al-Ali, 2003; Cheng et al.,
2005; Maditinos et al., 2011; Sullivan, 2000) have some agreement that intellectual capital is <strong>the</strong>
knowledge, applied experience, enterprise processes and technology customer relationships,
products and pr<strong>of</strong>essional skills which are valuable assets to an organisation. The big differences
between knowledge assets and intellectual capital <strong>of</strong>ten exist between a company's market value and
its book value. In this paper, we make a case for increasing KM maturity. We content that, primarily
an organisation needs to mature its knowledge capabilities and measure knowledge assets in order to
determine intellectual capital, and how it can focus on <strong>the</strong> exploitation <strong>of</strong> its market value.
Here, we outline <strong>the</strong> concepts underpinning KM and insights. The ‘<strong>European</strong> Guide for Good Practice
in Knowledge Management’ defines KM as a planned and ongoing management <strong>of</strong> activities and
processes for leveraging knowledge to enhance competitiveness through better use and creation <strong>of</strong>
individual and collective knowledge resources (CEN, 2004: 11). Key principles that facilitate
knowledge activities include creating, organising and capturing potentially useful knowledge to
achieve maximum usage in performance (King, 2007; Wiig, 1997).
As <strong>the</strong> focus on <strong>the</strong> use <strong>of</strong> knowledge in organisations becomes increasingly strategic, insights from
empirical surveys indicate that many organisations are still struggling with <strong>the</strong>ir KM efforts (Braganza
& Möllenkramer, 2002). Amongst <strong>the</strong>se we include <strong>the</strong> KPMG survey conducted on <strong>the</strong> top 500
organisations in <strong>the</strong> <strong>European</strong> Union (KPMG, 2003). The results <strong>of</strong> this survey suggest that KM is
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