Knowledge Management in the Software Industry: Creating Value Through Knowledge Application

Abstract

The software industry being highly knowledge-centric in terms of technology, process and people has been focusing on knowledge management strategically for the past two decades. Although the processes of knowledge creation and sharing are well researched, knowledge application is not well addressed. This study identifies project knowledge application and management support for knowledge application as the dimensions of knowledge application creating value to knowledge management in the software industry. Through a structural equation modelling approach, the relationships of management support for knowledge application, project knowledge application and effective knowledge management are tested. The findings show that the management support for knowledge application has an indirect effect—higher than a direct effect—on effective knowledge management through project knowledge application. The empirical study done on data collected from 540 software professionals of 170 National Association of Software and Services Companies-listed software companies proves the significance of knowledge application through management support and projects on effective knowledge management. But the role of management support is not as strong as project knowledge, and hence the organizations could enhance their culture of management support. The dimensions of knowledge application create value for people and process in software organizations by developing an environment of openness, collaboration and creativity, in addition to creating better response to changing environments which will help organizations to achieve the benefits of lean-agile software and system developments at scale.