SPF 5 and Limitations to Investing in Knowledge Management

Abstract

This paper will continue our work concerning the strategic management of intellectual capital. Based on the Rothberg/Erickson SPF framework which balances knowledge development with knowledge protection, we continue to explore differing circumstances and their impact on IC strategy. The framework differentiates between IC that needs to be aggressively developed by the firm (or not) and IC that is vulnerable to competitive intelligence incursion and needs protection (or not). Previously, we have looked at an environment within which substantial development of IC is necessary in order to be competitive but in which those same knowledge assets are at risk from competitive efforts to appropriate them (Erickson & Rothberg 2009b). In this paper, we will develop the scenario wherein aggressive development of IC may not be useful (highly tacit knowledge, difficult to share or apply in other situations) and little competitive intelligence activity is taking place (SPF 5 in the framework). In particular, we will characterize the nature of this environment in terms of theory, identify representative firms and industries, and apply data to the framework. Where appropriate, contrasts with other SPF environments will also be made.