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Thami Nompula MBA Dissertation March 2007 - Rhodes eResearch ...

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organisation’s success and survival. When knowledge workers possess more information and use<br />

it to create value, then they are regarded as being valuable to the organisation. Brooking (1996)<br />

defines intellectual capital as knowledge that can be converted into profit. This definition<br />

includes characteristic features such as inventions, ideas, design approaches, computer<br />

programmes, processes, company brands, customer relationships and publications. According to<br />

Brooking (2006), these features do not appear on the balance sheet but are capable of increasing<br />

the value of the company and ensuring its long-term competitiveness and profitability.<br />

2.2.4 Definition of knowledge work<br />

Knowledge is organised information that is applicable to problem-solving and has been organised<br />

to make it understandable and applicable to problem solving or decision making (Liebowitz,<br />

1999). Knowledge work therefore encapsulates methodologies, expertise, insights, thoughts,<br />

behaviours, experiences and procedures. These are in turn used to develop goods or services for<br />

the firm to remain profitable on a long-term and sustainable basis (Stewart, 1997; Liebowitz,<br />

1999). Knowledge work is used to actively enable performance, problem solving, learning and<br />

teaching and decision-making that leads to the production of goods and services (Hope and Hope,<br />

1997). The terms knowledge work and intellectual capital will be used interchangeably as they<br />

possess the same characteristics.<br />

The management of knowledge has become a key issue in keeping track of the competition in<br />

business (Hope and Hope, 1997). The landscape of knowledge management is expansive,<br />

ranging from technological applications to management of knowledge assets and methodologies<br />

that create the milieu that enhances the knowledge creation (Binney, 2001). In this study, the<br />

focus is on this latter aspect of knowledge management. Knowledge management in this study is<br />

defined as the capacity or processes within an organisation to maintain or improve organisational<br />

performance based on experience and knowledge (Pan and Scarbrough, 1999). It involves the<br />

way organisations build, supplement and organise knowledge and routines around their activities<br />

as well as in their culture (Pan and Scarbrough, 1999).<br />

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