Perceived Value of Knowledge: Through Knowledge Management in Service Sector

In global markets the traditional knowledge creation and transfer such as face-to-face contact, job rotation, and staff training program has been proved too slow and less effective (Alavi and Leidner, 1999). The development of more efficient means has resulted in implementing information systems that are designed specifically to facilitate coding, combining, and applying of organizational knowledge (Alavi and Leidner, 1999). Therefore, Knowledge management strategy is required for the growth in service sector. It is the necessary of modern era to understand the situation and accordingly develop service sector. For achieving this goal Knowledge management can play an important role and ensure the compete productively in service sector companies. At the present, Service sector companies have to face global competition. To gain high benefit, these companies use knowledge management to compete with other companies. Knowledge management is very important for service industry because it can help the companies improve their service, increase quality of product, reduce cost and faster response to their customers. However, the major challenge of managing knowledge in the companies is capturing and integrating knowledge to share among all organizational members (Grant, 1996). The successful company has to gain the ability to collect, store and distribute specialized knowledge to create and sustain competitive advantage (Davenport and Prusak, 1998; Grant 1996). Knowledge Management can help them to achieving this target. The paper in this context analyse the technique of KM and shows that how it has used by selected service industry for achieving the perceived value.