Exploring the impacts of knowledge (re)use and organizational memory on the effectiveness of strategic decisions: a longitudinal case study

Abstract

Two forces that dramatically affect the sustainability of firms' competitive advantage in the new competitive landscape have been identified as globalization and information and communication technologies (ICTs), such as the Internet and intranets (e.g., Castells, 2000; Porter, 2001). Organizations often rely on acquired knowledge from past experiences to make higher quality decisions on business strategies for better future performance. In this context, knowledge management (KM) and organizational memory (OM) become a central issue to the effectiveness of strategic decision-making and organizational performance. This paper examines the relationship between the (re)use of knowledge/organizational memory (OM) and the effectiveness of strategic decision-making in devising corporate strategies. As part of an exploratory case study approach, a number of interviews are being conducted among top executives at a multinational firm. As a framework, the components of the modified version of McLean's IS success model by Jennex & Olfman (2002) are being used to examine for the impact of knowledge strategy and technological resources, along with the impact of individuals and members from wider organizational context on strategic decision making processes. These components are then analyzed within Galliers' (2002) IS strategy framework of emergent and deliberate strategizing. The analysis accounts for the inter-subjectivity of the concept of KM. Results from a continuous longitudinal study have clearly shown the significance of culture and human-driven knowledge requirements along side the use of an ERP system as part of an OMS. On-going findings of this study aim to contribute to a richer understanding of the impact of knowledge and OM/OMS on organizational learning (OL) and the effectiveness of managerial decision processes. In the context of the IS success model, this paper highlights the intermingled approaches to organizational knowledge management practices due to the contextual nature of knowledge and the human need for social interaction.