Proceedings of the 12th European Conference on Knowledge ...

Behiye Çavuşoğlu and Mustafa Sagsan
(knowledge, skills and competencies, labor productivity, knowledge-intensive employment) and
enterprise dynamics (expand <strong>the</strong> boundaries across economics activity, shift resources and adjust
organizational structure based on <strong>the</strong> customers demands). Globalization is <strong>the</strong> third factor that
affects innovation, ICT, highly skilled workers on international mobility and low turnover rate <strong>of</strong>
organizations. The last and fourth factor requires new organizational form based on investing high ICT
and innovative capacity, supports teamwork and involves employee loyalty to adopt work practices
and respond customer demand timely. Information revolution, flexible organization, being
knowledgeable, skilled employee and openness to learning, creating innovation and knowledge
networks, enabling organizations to increase learning and innovation systems, competing globally,
integrating into complex chains <strong>of</strong> creation, production and distribution systems, concentrating on
network and learning economies are <strong>the</strong> most <strong>of</strong> <strong>the</strong> enablers that makes <strong>the</strong> emergence <strong>of</strong>
knowledge economy important (Houghton and Sheenan, 2000: 10-15). Two important forces
stimulate knowledge economy: <strong>the</strong> rise in knowledge intensity <strong>of</strong> economic activities (which is being
driven by <strong>the</strong> combined forces <strong>of</strong> <strong>the</strong> IT technology revolution) and <strong>the</strong> increasing globalization <strong>of</strong>
economic affairs (which is driven by national and international deregulation) (Houghton and Sheenan,
2000: 2; see also Sheenan and Tegart, 1998).
There is also alternative definition on knowledge economy which refers to libraries, archives,
museums, galleries, zoos, aquaria, and o<strong>the</strong>r systematic collection that enable individuals and
societies to know what <strong>the</strong>y know and to do what <strong>the</strong>y do based on epidemic perspective (Hedstorm
and King, 2006: 113). Porter (1999) also points out <strong>the</strong> term <strong>of</strong> ‘clusters’ which could be defined
geographic concentrations <strong>of</strong> interconnected companies and institutions in a particular filed. The
clusters might compete with each o<strong>the</strong>r if <strong>the</strong>y can access to specialized information, can harmonize
and construct a linkage <strong>the</strong> o<strong>the</strong>r cluster, can access to institutions and public goods, can provide
better motivation and performance measurement systems. The clusters can easily innovate in order to
enhance productivity and have a positive feedback loop to form a new business model. Finally,
choosing locations such as ease <strong>of</strong> transportation and communication, engaging locally like easy to
access important sources and information, working collectively are some <strong>of</strong> <strong>the</strong> important clues for <strong>the</strong>
clusters in <strong>the</strong> new economy.
2.1.2 Intellectual Capital
In order to make national knowledge management strategy, we need to determine national knowledge
assets, which is an important part <strong>of</strong> intellectual capital. Before explaining knowledge asset, it is
needed to express intellectual capital. A lot <strong>of</strong> definitions could be seen in <strong>the</strong> literature on intellectual
capital but one <strong>of</strong> <strong>the</strong> most popular and earlier explanations come from Edwinsson (1997), Streward
(1997), Brooking (1997), Sveiby (1997), and Ross, (1998) which all could be categorized within <strong>the</strong>
first generation <strong>of</strong> IC development, called ‘Raising and Awareness’ (Catasus and Chaminade, 2007).
The second one is ‘Simplifying’ and <strong>the</strong> third one is ‘Questioning and Expanding’. The fundamental
concept <strong>of</strong> knowledge assets emerges from <strong>the</strong> IC and belongs to <strong>the</strong> first generation. The seeking a
suitable and a new place <strong>of</strong> IC among <strong>the</strong> social sciences and <strong>the</strong> classifying <strong>of</strong> <strong>the</strong> field into <strong>the</strong> three
main sections (human, structural/organizational and social/relational capital) were discussed within
<strong>the</strong> second generation. The third generation underlines <strong>the</strong> IC measurement criteria, by considering
<strong>the</strong> main problematic issues on how could it be applied with and organization and society.
NKMS is required to be knowledge-intensive society. There is no doubt that knowledge and
intellectual capital are leveraged as <strong>the</strong> most important resources for growth and competitiveness and
it is an idea <strong>of</strong> a transformation form an industrial society to a knowledge society (Kline, 2006).
Intellectual capital is also considered instrumental in <strong>the</strong> determination <strong>of</strong> enterprise value and
national economic performance (Petty and Guthrie, 2000).
National knowledge management strategy requires activating innovative systems <strong>of</strong> any groups,
networks or society. It entails shared problem solving, implementing and integrating a new technical
processes and tools, experimenting and prototyping, importing and absorbing technological
knowledge from outside <strong>of</strong> <strong>the</strong> firm and learning from <strong>the</strong> market, and transferring product or services
development capabilities into developing nations (Leonard, 1995).
2.1.3 Information Policy
Information policy <strong>of</strong> a nation is ano<strong>the</strong>r important indicator that helps us to understand NKMS. In
o<strong>the</strong>r words, information policy studies are improving a parallel with NKMS based on <strong>the</strong>ir context.
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