This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Citation Map Services Email this article to a friend Similar articles in this journal Similar articles in ISI Web of Science Alert me to new issues of the journal Add to Saved Citations Download to citation manager Add to My Marked Citations Citing Articles Citing Articles via HighWire Citing Articles via ISI Web of Science (5) Citing Articles via Google Scholar Google Scholar Articles by Chen, M.-Y. Articles by Chen, A.-P. Search for Related Content Social Bookmarking                   What's this?

Integrating option model and knowledge management performance measures: an empirical study

Institute of Information Management, National Chiao Tung University, Taiwan, Republic of China, mychen{at}iim.nctu.edu.tw

An-Pin Chen

Institute of Information Management, National Chiao Tung University, Taiwan, Republic of China

The knowledge-based economy is coming, and knowledge management (KM) has rapidly disseminated in academic circles as well as in the business world. While an increasing number of companies have launched into knowledge management initiatives, a large proportion of these initiatives are limited to a technical focus. The problem with this type of focus is that it excludes and neglects the true potential benefits that can be derived from knowledge management. This paper develops a new metric, knowledge management performance index (KMPI), for evaluating the performance of a firm in its KM at a point in time. We therefore suggest that a KMPI can be used to determine KM activities from the following perspectives: knowledge creation, knowledge conversion, knowledge circulation and knowledge completion. When KM activities efficiency is increased, KMPI will also be expanded, enabling firms to become knowledge intensive. This paper makes three important contributions: (1) it provides a formal theoretical grounding for the validity of the Black-Scholes model that might be applied to KM; (2) it proposes a measurement framework to enable knowledge assets to be leveraged effectively and efficiently; and (3) it presents the first application of the Black-Scholes model that uses a real-world business situation involving KM as its test bed. The results prove the option pricing model can act as a measurement guideline to the whole range of KM activities.

Key Words: knowledge management • Black-Scholes model • performance measurement and evaluation

CiteULike    Connotea    Del.icio.us    Digg    Reddit    Technorati    What's this?

This article has been cited by other articles:

				H.-F. Lin A stage model of knowledge management: an empirical investigation of process and effectiveness Journal of Information Science, December 1, 2007; 33(6): 643 - 659. [Abstract] [PDF]

				W.-Y. Wu and C.-Y. Li A contingency approach to incorporate human, emotional and social influence into a TAM for KM programs Journal of Information Science, June 1, 2007; 33(3): 275 - 297. [Abstract] [PDF]

				V. R. Montequin, F. O. Fernandez, V. A. Cabal, and N. R. Gutierrez An integrated framework for intellectual capital measurement and knowledge management implementation in small and medium-sized enterprises Journal of Information Science, December 1, 2006; 32(6): 525 - 538. [Abstract] [PDF]

				M.-Y. Chen and A.-P. Chen Knowledge management performance evaluation: a decade review from 1995 to 2004 Journal of Information Science, February 1, 2006; 32(1): 17 - 38. [Abstract] [PDF]