Measuring the Effectiveness of Organizational Knowledge Based Economy

Abstract

Effective Knowledge Management (KM) is an important process for handling information which is essential for implementing successful projects and making improvement to the knowledge‑based economy. KM deals with how knowledge is produced, shared in a secure manner, and used by organizations or individual for the benefit of the economy. Sharing of information and knowledge as well as providing the relevant financial support are among the main success factors for creating innovations, while protecting the Intellectual property (IP) satisfies the requirement for sharing of knowledge fairly and preserving the right of the inventors. In order to achieve an effective KM that contributes to the overall knowledge economy, there should be a proper way to measure it according to well known set of criteria. In this paper an analytical method has been devised based on different performance indicators to verify the availability of useful knowledge which is linked to successful knowledge investment and its business continuity. Unlike other methods that focus on descriptive approach, the proposed analytical method relies on qualitative approach that is based on how the probability of the knowledge factors can occur in a certain environment in relation to the set of goals that have been identified for a certain organization. This new method would allow managers to evaluate the performance of knowledge based economy of different organizations and assist them in identifying the reason for lacking economy growth, and therefore plan for improvement. Another way for measuring the effectiveness of a fair partnership model can rely on a direct method using a statistical survey to collect the statistical data that can help in identifying obstacles in reaching the organization's goals. An example for measuring the effectiveness of fair partnership has been described in this paper by using a survey which has been conducted to evaluate projects that are running in Saudi Arabia in order to understand the difficulties in attracting funds through a Venture Capital program, so the proper solutions can be recommended