The Impact of E-Commerce Announcements on the Market Value of Firms
Information Systems Research
An empirical investigation of KM styles and their effect on corporate performance
Information and Management
Journal of Computer Security - IFIP 2000
Information and Management
Information and Management
Building user commitment to implementing a knowledge management strategy
Information and Management
Can technology build organizational social capital?: the case of a global IT consulting firm
Information and Management
Journal of Management Information Systems
The Effects of a KM Strategy on KM Performance in Professional Services Firms
International Journal of Knowledge Management
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Although there is much literature on the relationship between KM strategies and organizational performance, the benefit of KM strategies is not well understood. We addressed this issue by exploring how KM strategies influence a firm's market value using event study methodology. We evaluated the cumulative abnormal returns for KM strategies announced by U. S. firms from 1998 to 2003. Our findings supported the hypothesis that firms' announcements about their KM strategies provoked positive reactions in the market. More specifically, strategies that focus on either (i) knowledge reusability through IT or (ii) knowledge sharing through informal discussions among employees contributed to higher performance than strategies that emphasized both. This outcome empirically supported our argument that the emphasis on either tacit or explicit knowledge results in a better market value of the firm. Furthermore, the market's reaction to the announcement is dependent on the firm's industry classification. The findings of this study offer insights that may help managers maximize the market impact of their KM strategies.