Managing Knowledge in High Technology Firms

In this paper, it is attempted to develop a better understanding of the challenges and strategies of knowledge management within the innovation process in high technology firms. The paper aims to explore knowledge management processes and practices in firms that are engaged in the new product /service development programs. Consistent with the exploratory character of the study, the research question is: How is knowledge integrated, sourced and recombined from internal and external sources for innovation and new product development? The research took an exploratory case study approach and developed a theoretical framework to investigate the knowledge situation of knowledge-intensive technology firms. Equipped with the conceptual foundation, the research adopted a multiple case study method investigating four diverse Australian technology firms from IT, biotechnology, nanotechnology and biochemistry industries. Overall, findings indicate that building effective and adaptive IT systems to manage and share knowledge in the firm is one of the biggest challenges for these small firms. Also, there is little explicit strategy in small knowledge-intensive firms that is targeted at systematic KM either at the strategic or operational level. Therefore, a strategic approach to managing knowledge for innovation as well as leadership and management are essential to achieving effective KM. In particular, research findings demonstrate that gathering tacit knowledge, internal and external to the organization, and applying processes to ensure the availability of knowledge for innovation teams, drives down the risks and cost of innovation.