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The Six Pillars of Knowledge

Carsten Brockmann Narcyz Roztocki Capgemini Germany State University of New York at New Paltz [email protected] Kozminski University [email protected]

Abstract Knowledge Economics is a fast growing discipline. Knowledge Economics focuses on benefits and costs The purpose of this paper is to extend our earlier of generating knowledge outputs and is one of many on the contributions to the mini-track on subfields of the field of knowledge . Knowledge Economics at the Hawaii International The rising popularity and relevance in the current Conference on System (HICSS). In the contributed to Knowledge Economics present work, we analyze 16 contributions from 2012 having its own dedicated mini-track at the Hawaii to 2016 and based on our analysis, we propose the Six International Conference on System Sciences Pillars of Knowledge Economics framework. The (HICSS). The HICSS Knowledge Economics mini- proposed framework articulates that six elements are track was introduced in 2012 and throughout the years essential to generate knowledge outputs: has attracted a variety of submissions. Since 2012, the Capability, Leadership, Human , mini-track co-chairs have created a one-page , Financial Resources, and description of the papers [2-6]. Moreover, in 2014 they Innovation Climate. Additional major findings are conducted and published an analysis of seven papers that are the most common unit of published in HISSS proceedings in years 2012 and analysis, while the individual level is hardly 2013 [7]. considered. Journals represent the major source of In the meantime, the cumulative body of citations. Conference proceedings were less cited, knowledge of the HICSS Knowledge Economics though more current. We recommend major mini-track grew to 16 papers presented at the conferences to be indexed by services like Scopus and conference in five years and updated analysis is in provide to peer-reviewed proceedings. order. This updated analysis is presented in this contribution and its objective is to provide a robust 1. Introduction foundation for scholars working in the field of Knowledge Economics and therefore help advance the field. Systematic reviews of published literature The three main questions that guide this repositories are essential for any academic inquiry and literature analysis are: research progress in a given field [1]. In essence, 1. What are the main topics in the current methodical analyses of published literature help to Knowledge Economics research? reveal what is already known and what needs to be 2. What gaps in current research exist and what addressed in future research projects. Familiarized are promising research avenues for the future? with the status of the field by literature review papers, 3. What are the most crucial components in the researchers are more effective in their own scholarly process of creating knowledge outputs? inquiries. They can avoid spending time and resources The remainder of the paper is structured as follows. to examine what was already known, well researched In the next section, we briefly describe the background and well accepted. In particular, literature review of Knowledge Economics. Then, we outline the papers are crucial in fast growing disciplines as they methodology of our literature analysis. After channel the research efforts towards the most summarizing the key results, we propose the Six promising topics and so advance the body of Pillars of Knowledge Economics framework. Finally, knowledge building faster. we communicate several major observations and Within the current global economy, as more and propose multiple future research avenues. more countries move to become knowledge and are dependent on knowledge outputs,

URI: http://hdl.handle.net/10125/41701 ISBN: 978-0-9981331-0-2 CC-BY-NC-ND 4444 2. Background the intent of improving the ’s effectiveness. According to Jennex and Zyngier [15], Knowledge Economics concerns the financial is a vehicle to increase the impact of knowledge creation, modification, use of knowledge within organizations by applying the and use [7]. By analyzing models methodical processes of knowledge identification, of Enterprise Planning (ERP) vendors, capture, storage, search, and retrieval. It is also based Brockmann found that knowledge can be monetized on processes that facilitate the transfer of knowledge by offering customization of the standard systems. from those who generate it to those who use it to make This customization allows ERP to be adjusted to the decisions. specific needs of an organization while creating an Knowledge management is not always the same knowledge and additional income streams for and must be tailored to a given organization. Human ERP vendors [8]. capital of employees and competency of management The expression Knowledge Economics contains are essential in this aspect. The most challenging is two terms, knowledge and economics [7], and it is proper knowledge management in organizations that related to the generation of knowledge outputs of operate in a fast-changing business and regulatory commercial as depicted in Figure 1. environment and are plagued by “fragile human The first term, knowledge, is commonly believed capital” [16] while having problems with marketing to have been first defined by Davenport and Prusak theirown knowledge outputs [17]. [9]. According to Davenport and Prusak’s definition, Our definition is as follows: Knowledge knowledge is an evolving mix of contextual Economics is a research field that concerns factors and information, framed experience, values and activities aiming to generate knowledge outputs. The insight. This diverse mix provides a useful framework knowledge outputs are objects of commercial value for storing, evaluating and using collected experiences and are generated in knowledge-intensive activities or and information. Moreover, these past experiences and processes by using knowledge creation or information are often reflected in organizational modification. Knowledge Economics also deals with documents as well as imbedded in organizational distribution and use of knowledge outputs. routines, business processes, practices, and values. Knowledge Economics consists of two The second term economics, is defined by perspectives: a macro-perspective analyzing factors Colander [10] as how people coordinate their wants that positively influence the quantity and quality of and desires given the social customs, decision-making knowledge outputs in a , and a micro- mechanisms and political realities of the society. perspective which analyzes the handling of knowledge Mankiw [11] takes a different approach and defines objects in individual transactions. Herein, the economics as the study of how society manages its capturing, storing, searching and retrieving of scarce resources. Bade and Parkin [12] consider knowledge outputs are subjects of . economics as the study of human behavior, focusing on human decision-making. Knowledge outputs could be tangible or Knowledge intangible. Examples of tangible knowledge outputs Knowledge Outputs are books and software. Examples of intangible knowledge outputs could be business consulting or Economics professional editing. Knowledge Economics deals with financial aspects of knowledge management [7]. For example, Figure 1: Definition of Knowledge Economics there are costs and benefits associated with knowledge management. Costs incurs for identification, 3. Methodology capturing, storing, searching, and retrieving knowledge. Financial benefits of knowledge In order to examine the cumulative body of management include improved products and/or knowledge of the past accepted submissions to the services and better decision-making. Overall, these HICSS mini-track on Knowledge Economics a costs and benefits of managing knowledge can be systematic analysis was used. In essence, the same defined as Knowledge Economics [7]. methodology was used as in our earlier study [7]. Knowledge management, as defined by Jennex et Since the inception the HICSS mini-track on al. [13, 14], is a process of the selective application of Knowledge Economics in 2012, 16 manuscripts have knowledge from past experiences of decision-making passed the rigorous peer review process and were to current and future decision making activities with

4445 included in the HICSS proceedings. All these papers from 23 to 62. The average number of citations per were considered for our examination: paper was 41 and the median 43. The analyzed papers used a variety of sources as From 2012: Chung et al. [18], Rai [19] and Trauth [20] shown in Table 1. It can be observed that more than From 2013:Bahrs et al. [21], Loeser et al. [22], Prpic half of the overall citations are based on journal and Shukla [23] and Thies and Stanoevska-Slabeva articles, followed by books and conference [24] proceedings. The other sources included From 2014: Brockmann and Roztocki [7], Prpic and publications, web sites and working papers. In line Shukla [25] and Sharif et al. [26] with our earlier analysis [7], this confirms our From 2015: Brockmann and Roztocki [27], Hilbert conclusion that authors wishing to disseminate their [28] and Kees [29] in the field of Knowledge Economics should From 2016: Al Busadi [30], Kowal and Gurba [31] and strive mostly for journal publications. As a next step, Peinl et al. [32] they should proceed by publishing their ideas in the proceedings of the leading conferences. In contrast, Similar to our earlier analysis [7], the 16 papers of the effort of publishing in trade publication, websites in the HICSS mini-track Knowledge Economics were and working paper is not rewarded at all by the analyzed in four major steps regarding dimensions research community. depicted in Figure 2.

Table 1: Distribution of sources Citation analysis

Type of source Percentage Objectives and Journals 51.2 methodologies Books 20.0 Conference Proceedings 13.9 Data source and unit of analysis Others 14.9

Again, since the majority of publications cited were Recommendation for future research published in journals, a deeper analysis of journals was performed as in our earlier analysis [7]. Figure 2: Steps of literature analysis undertaken (adapted from Brockmann and Roztocki (2014)) Table 2: Frequency of cited journal 4. Results

4.1 Citation Analysis Source title Count MIS Quarterly 24 In the first step of our analysis, we examined the Journal 16 theoretical foundation of the 16 papers published in Journal of Management Information the years 2012-2016. In essence, we looked at characteristics of sources included in the reference Systems 14 sections. In order to efficiently analyze the reference Organization 14 sections of the 16 papers, we decided to use the International Journal of Knowledge provided by Scopus. Scopus is a bibliographic Management 9 database containing citations for academic articles. In Journal of Strategic Information addition to academic journals, many prestigious Systems 7 conferences, such as HICSS, are referenced in Scopus. Information and Management 6 Scopus allows downloading references in CSV text file format. Research Policy 6 In total, the 16 papers published in the years 2012- 2016 contained 656 citations of which 590 were Table 2 shows that only eight journals account for unique. In other words, authors of 16 papers presented 96 of the cited articles. This represents about 14.6 in the HICSS mini-track on percent of all 656 citations. After looking at the build their research on a cumulative body of 590 journals, it can be concluded that the sources are sources. The number of citations per paper ranged dominated by two streams: management literature and

4446 IT literature. It can also be observed that authors who As it could be seen from Table 4, Ikujiro Nonaka is would like to see their work cited should submit their the most influential author in our sample based on the work to one of the journals listed in Table 2. amount of citations. Table 3 shows how current publications from their From the contributions published, Alavi and respective outlets were. The second column of Table 3 Leidner (2011) as well as Brockmann and Roztocki depicts the average year of publication and the second (2014) were literature review papers. The that column. It is observable that conference papers only two review papers were cited in our sample may provide the most current theoretical insights. indicate that the field of Knowledge Economics is Moreover, a closer examination of conference being formed at the moment. publications shows that most of the cited conference The most cited literature is relatively old and only proceeding originated from the AMCIS and HICSS. one source from 2014 is more recent. Once the ideas have matured through the discussions during conferences, they are published in journals and, 4.2 Objectives and Methodologies Used perhaps, afterwards in a book. In the second step, we examined the objectives of Table 3: Kind of outlet and year published the 16 papers. Often, the purpose of the papers was pronounced in the abstract or introduction. We also Kind of outlet Average Median looked at the research methodologies used by authors. Journals 2001.6 2005 Table 5 depicts the objectives and applied Books 1996.3 2000 methodologies of the examined work. It can be Conference Proceedings 2009.8 2011 observed that most of the papers are conceptual. Others 2005.9 2008 Table 5: Objectives and methodologies Table 4 depicts sources that were cited at least three times. Paper Objective Type of the Table 4: Most cited work study Chung et al. To examine the Empirical Source Cited [18] role of Nonaka I., Takeuchi H. The Knowledge- 6 organizational Creating (1995) [33] agility as a Nonaka I. A Dynamic Theory of 5 mediator Organizational Knowledge Creation (1994) between [34] knowledge Alavi M., Leidner D.E. Review: 4 creation Knowledge Management and Knowledge processes and Management Systems: Conceptual financial firm Foundations and Research Issues (2001) performance [35] Rai [19] Determine the Empirical Powell W.W., Snellman K. W.W. Powell 4 gap between The Knowledge Economy (2004). [36] perceptions of Brockmann C., Roztocki N. The Evolution 3 importance and knowledge in of Knowledge Economics through the Information Course of Time – An Analysis of the Technology (IT) HICSS Minitrack (2014) [7] skills among Hayek F.A. The Use of Knowledge in 3 accountants in Society (1945) [37] Australia Nonaka I., Toyama R. The 3 Trauth [20] Determine Theoretical Knowledge-Creating Theory Revisited: process of and empirical Knowledge Creation as a Synthesizing knowledge Process (2003) [38] acquisition, Polanyi M. The Tacit Dimension 3 , (1966) [39] transfer and management

4447 Paper Objective Type of the Paper Objective Type of the study study Bahrs et al. Introduce two Empirical economics and [21] opposing technical approaches for information the design of systems knowledge Kees [29] Creation of a 4- Theoretical transfer pillar model to Loeser et al. Propose a green Theoretical describe the [22] IS strategy knowledge based Prpic and Outline the Theoretical enterprise Shukla [23] overarching organization theory of crowd Al Busadi Examine the Empirical capital [30] value of Thies and Identifying the Theoretical information and Stanoevska- state of the art in communications Slabeva [24] environmental on reporting, developing extracting the knowledge requirements for economies Gulf information Cooperation quality in Council environmental countries. reporting, and Kowal and Examine Empirical proposing an Gurba [31] mobbing and approach of how professional the quality of burnout among environmental knowledge information in workers in IO-ERIS can be transition enhanced economies following the Peinl et al. Modeling of Empirical design science [32] knowledge and research cycle. business Brockmann Evolution of the Theoretical processes and emerging and empirical Roztocki. [7] research field on 4.3 Data Source and Unit of Analysis knowledge economics In the third step of our analysis, we examined the Prpic and Define the term Theoretical papers for their data sources and unit of analysis. The Shukla [25] crowd capability results are presented in Table 6. It seems that most of Sharif et al. Apply cognitive Theoretical the researchers validate their concepts in practice prior [26] techniques for to publishing them. However, several contributions knowledge-based were conceptual, without any empirical validation. decisions. The most frequently used unit of analysis is, with Brockmann Analyze articles Theoretical some exceptions, organization. and Roztocki published in the and empirical [27] International Journal of Knowledge management Hilbert [28] Creation of a Theoretical mathematical framework to consider

4448 Table 6: Data source and unit of analysis Table 7: Recommended future research

Paper Data Unit of analysis Paper Recommended future research source Chung et al. Conduct more research Chung et al. Survey Organization [18] [18] Rai [19] Replicate the current study Rai [19] Survey Individual Trauth [20] Focus Region Trauth [20] Perform quantitative testing Groups, Interviews, Bahrs et al. Merge the strings of research and Survey [21] enhance the modeling language Bahrs et al. Interviews Organization to reflect risks and benefits [21] Loeser et al. Conduct empirical research to Loeser et al. Literature Organization [22] validate the theoretically derived [22] model Prpic and Literature Organization Prpic and Develop testable propositions Shukla. [23] Shukla [23] Thies and Case Organization Thies and Collect empirical data from Stanoevska- studies Stanoevska- ongoing user evaluation Slabeva Slabeva [24] [24] Brockmann Broaden scope and consider Brockmann Literature Conference and Roztocki. emerging economies and contributions [7] Roztocki[7] Prpic and Investigate relative efficacy of Prpic and Literature Literature analysis Shukla [25] episodic structures vs. Shukla [25] constituting forms. Sharif et al. Literature Organization Sharif et al. Extend the scope [26] [26] Brockmann Literature Journal Articles Brockmann Creation of a and and Roztocki Roztocki [27] [27] Hilbert [28] Literature Organization Hilbert [28] More research on short- and Kees [29] Literature Organization long-term patterns. Al Busadi Secondary Country Kees [29] Validate the developed approach [30] data in other organization (World Al Busadi [30] Conduct a more sophisticated Bank) econometric longitudinal Kowal and Survey Individual/Organization analyses of data Gurba [31] Kowal and Consider socio-economic factors Peinl et Interviews Organization Gurba [31] such personal income. Expand al.[32] scope of investigation beyond Poland 4.4 Recommendations for Future Research Peinl et al. [32] Performing end user evaluation with a mobile modeling tool In the fourth and final step, we examined the 16 papers for authors’ recommendations regarding future research possibilities. Overall, regarding the future research, most of the authors wish to validate and refine their concepts by conducting supplementary experiments, as shown in Table 7.

4449 5. The Six Pillars of Knowledge Economics IT resources are the fourth pillar in our Six Pillars of Knowledge Economics framework. These IT In 2004, in a working paper, Goel et al. [40] resources, hardware, software and advised that in order to move a country towards telecommunications networks are supportive in becoming a knowledge economy four key strategic creating and marketing knowledge outputs. reforms are needed. These reforms should create a Financial resources are the fifth pillar in our knowledge economy supported by the following four framework. Financial resources are enablers in pillars: policy and institutional framework, innovation generating knowledge outputs. systems, and training, and information The sixth and last pillar in our framework is an infrastructure. This concept also emphasizes innovative climate. All begin with a novel knowledge as critical element for economic ideas [45]. Some climates are supportive and some are performance at a country level. It is an interesting hampering to creative ideas. concept, but in our opinion, economic strength The proposed framework can be used to determine depends not only on only the creating but also the reasons why the knowledge outputs of commercial selling of knowledge outputs of commercial value. In value are not at the level desired. One example could addition, the definition by Goel et al. [40] discards the be that weak Leadership and insufficient Innovation impact of resources and leadership, which are crucial. Capability hinder the creation of knowledge outputs. The analysis of the 16 papers within the mini-track seems to supports our concept and resulted in the 6. Discussion construction of a conceptual framework, which we have termed the Six Pillars of Knowledge Economics In general, our analysis underscores the novelty of framework (Figure 3). The proposed framework the field of Knowledge Economics. For example, it focuses on marketable knowledge outputs and points confirms no dominant themes or schools seem to exist. to the most crucial components in the process of The field is dominated by mainstream journals where creating these knowledge outputs. In essence, in order mostly US-based scholars publish their work. to create knowledge outputs of commercial value, Frequently, these mainstream journals do not have innovation capability, leadership, , IT Associate Editors or members of Editorial Board that resources, financial resources, and innovation climate are affiliated with institutions located in transition are required as depicted in Figure 3. economies or other emerging regions [46]. The first pillar of our Six Pillars of Knowledge Although the ideas presented in this paper are Economics framework is innovation capability. In limited to only 16 papers presented at five consecutive context of this work and based on the definition HICSS conferences (HICSS 2012 to 2016), we feel provided by Francis in 2005 [41], we define that our analysis makes a reasonable contribution to innovation capability as the ability to generate novel, the raising field of Knowledge Economics. Mainly, potentially value-adding initiatives. In this definition, our paper presents several interesting observations that we use the word novel to underscore innovation could be transformed in future research. content, meaning that it represents something that was By using the citation analysis, we were able to not done before in a given environment. In addition, detect that the AMCIS and the HICSS are the most the initiative must have true potential to be value- relevant venues related to Knowledge Economics. adding, which means marketable. Moreover, our experience shows that a conference The second pillar of our Six Pillars of Knowledge from which articles are highly cited should be indexed Economics framework is leadership. It is apparent that in a bibliographic database containing citations, such the owners are in position to control the strategy, as Scopus. This provides opportunity to find articles allocation of resources, various initiatives [42] and and analyze their relationship. creation of knowledge products and services. The literature base aside from conferences can be The third pillar in our framework is human capital. regarded as established. Three examples are the Human capital is defined as abilities, skills and citation from 1911 of Taylor [47], the citation from attitudes to produce economic value [43]. A highly 1937 of Coase [48] and the citation from 1945 of talented, well-educated and creative is more Hayek [37]. Interestingly, there is one citation from likely to generate knowledge products and services 1941 by Kolmogorov [49]. that could be marketed at a high premium. In contrast, Most researchers in the Knowledge Economics creating knowledge economies based on knowledge field focus on organizational implications of the outputs is difficult in countries where a large portion knowledge management method. of the workforce is considered to represent “fragile human capital” [16, 44].

4450 Knowledge Outputs

Knowledge Management

Knowledge Knowledge Knowledge Knowledge creation modification transfer use

Innovation Leadership Human IT Financial Innovation Capability Capital Resources Resources Climate

Figure 3: The six pillars of knowledge economics

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