Utilizing the balanced scorecard for performance measurement of knowledge management

Knowledge management (KM) is important if firms are to achieve and sustain a competitive advantage. However, measuring KM performance over time can be quite complex due to the inherent uncertainty of the exercise. The main purpose of this article is to explore integrated performance-measurement systems that evaluate financial and non-financial performance of a knowledge-management system. To achieve this, the concept of KP methodology is integrated in a knowledge-management system with the Balanced Scorecard (BSC) to present a model that can be used by firms to link resources and business activities to the firm's strategic objectives. The study presents examples of how firms can apply this integrated performance measurement system to knowledge management.