Managing Knowledge in the Dark: An Empirical Examination of the Reliability of Competency Evaluations

Denrell, Jerker, Arvidsson, Niklas and Zander, Udo (2004) Managing Knowledge in the Dark: An Empirical Examination of the Reliability of Competency Evaluations. Management Science, 50 (11). pp. 1491-1503.

Abstract

If knowledge is to be managed and transferred, it is essential that members of organizations know and agree
on where capabilities reside. Few studies, however, have examined the difficulties of evaluating capabilities
in large firms. This paper reports an in-depth empirical study of capabilities central to knowledge management
efforts in large leading multinational companies. The results show that evaluation of these capabilities is
a complex task. The median interrater correlation for capabilities designated as strategic by top management
is only 0.28. Analysis of the determinants of reliability show that the difference in evaluations is largest for
subsidiaries managers know less about, for younger subsidiaries, and for subsidiaries in less important markets.
The results of our empirical study have important implications for creating, retaining, and transferring
knowledge in organizations.

Item Type: Article
Keywords: knowledge management; capabilities; interrater reliability
Subject(s): Strategy; Entrepreneurship & Global business
Centre: Faculty of Strategy, Entrepreneurship and International Business
Date Deposited: 26 Oct 2011 11:27
Last Modified: 23 Oct 2015 14:05
URI: http://eureka.sbs.ox.ac.uk/id/eprint/997

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