Validating Distinct Knowledge Assets

Identification and measurement of organizational Knowledge Management capabilities is necessary to determine the extent to which an organization utilizes its knowledge assets. We developed and operationalized a set of constructs to measure capabilities associated with management of knowledge assets identified as distinct Knowledge Capabilities (KCs) comprising the overall Knowledge Management (KM) capability of an organizational unit. Each KC represents a distinct kind of knowledge that requires different organizational process and technological support. This delineation of knowledge allows targeted improvement to a specific KC. We present validation of these capability constructs with empirical evidence from two separate business units in a large semi-conductor manufacturing company, providing the basis of measurement standardization for KM Capability improvement. Confirmatory factor analysis affirmed four KCs, each identified as an overall factor influencing a set of latent descriptor variables. Second Order and General-Specific Structural Equation Models of each capability provide evidence as to the validity of measurement of these knowledge assets. A standardized instrument for measuring knowledge capabilities would not only allow benchmarking, but also allow tracking capabilities over time and linking them to those performance metrics that are deemed appropriate by the organization.