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cesses <strong>and</strong> model building underst<strong>and</strong>ing,<br />

including sensitive analysis; <strong>and</strong> operational<br />

definitions <strong>of</strong> concepts <strong>and</strong> design<br />

<strong>of</strong> appropriate measurement techniques<br />

development that lend themselves to<br />

decision making <strong>and</strong> process intervention.<br />

3 New technologies. Emerging computerbased<br />

technologies <strong>of</strong>fer enormous<br />

potential for efficiency, innovation, <strong>and</strong><br />

value creation to society. Value derives<br />

from knowledge, <strong>and</strong> human capital is the<br />

most critical corporate asset. Vital competences<br />

include hardware <strong>and</strong> s<strong>of</strong>tware<br />

development, problem solving, encryption<br />

<strong>and</strong> communication.<br />

4 New time horizons. The environment in<br />

which today’s organizations exist is in a<br />

continual state <strong>of</strong> flux. Complex changes<br />

occur at an ever-increasing pace. Given<br />

the rapidity <strong>of</strong> change, corporations<br />

must invest heavily in lifelong learning<br />

skills to enable individuals to maintain<br />

current knowledge, skills, <strong>and</strong> essential<br />

competences to facilitate agile response. It<br />

is necessary that continuing education<br />

emphasize intellectual capacity <strong>and</strong> pr<strong>of</strong>essional<br />

development.<br />

5 New competition. As information becomes<br />

accessible across national boundaries,<br />

global markets are becoming dominant.<br />

Organizations need to develop the ability<br />

to underst<strong>and</strong> emerging problems, <strong>and</strong> to<br />

rapidly develop <strong>and</strong> deploy cost-effective<br />

services. Required competences include<br />

marketing <strong>and</strong> selling, underst<strong>and</strong>ing<br />

stakeholder needs, problem solving,<br />

designing <strong>and</strong> deploying effective solutions,<br />

<strong>and</strong> communicating.<br />

<strong>Communication</strong>, <strong>and</strong> therefore language, is<br />

an important competency implied by each <strong>of</strong><br />

the five factors described above.<br />

There is considerable interest in the study<br />

<strong>of</strong> organizational design for effective knowledge<br />

creation <strong>and</strong> management. Blackler<br />

(1995) has reviewed concepts <strong>of</strong> knowledge,<br />

classified them, <strong>and</strong> examined processes for<br />

generating, storing, <strong>and</strong> applying knowledge.<br />

He has developed a typology <strong>of</strong> knowledge<br />

organizations. Other writers have discussed<br />

various aspects <strong>of</strong> management <strong>of</strong> knowledge<br />

(Peters, 1992; Skyrme <strong>and</strong> Amidon, 1997;<br />

Sveiby, 1997), including designs <strong>of</strong> work systems<br />

for knowledge workers (Pasmore <strong>and</strong><br />

Purser, 1993), organizational learning in<br />

knowledge-intensive firms (Starbuck, 1992),<br />

<strong>and</strong> power <strong>and</strong> control <strong>of</strong> expertise (Reed,<br />

1996). Unfortunately, the relationship between<br />

language <strong>and</strong> knowledge in the context<br />

<strong>of</strong> organizational design has not been studied.<br />

Let us examine the role <strong>of</strong> language in knowledge<br />

management.<br />

For effective management <strong>of</strong> the knowledge<br />

creation process, it is important to<br />

comprehend the difference between knowledge<br />

<strong>and</strong> underst<strong>and</strong>ing. Schw<strong>and</strong>t (1999)<br />

expresses the difference between knowledge<br />

<strong>and</strong> underst<strong>and</strong>ing in German through the<br />

questions, ‘Woher weibetat du das’ <strong>and</strong> ‘Wie<br />

verstehen Sie das’ In English one would ask,<br />

‘How do you know that’ <strong>and</strong> ‘What do you<br />

make <strong>of</strong> that’ It may be argued that to effectively<br />

use or apply information, as knowledge,<br />

to strategic advantage, an organization should<br />

underst<strong>and</strong> the knowledge, as evidenced by its<br />

making something <strong>of</strong> that knowledge. To compete<br />

effectively, a multinational corporation,<br />

operating at a global scale, must acquire the<br />

ability to make something <strong>of</strong> its knowledge,<br />

through its core competences, including communication<br />

in different historical, cultural <strong>and</strong><br />

linguistic milieux. In the 1990s, 97 per cent <strong>of</strong><br />

US export growth came from small- to<br />

medium-sized businesses, but only 10 per<br />

cent <strong>of</strong> these companies were exporting<br />

© 2004 S<strong>and</strong>ra Oliver for editorial matter <strong>and</strong> selection;<br />

individual chapters, the contributors

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