The strategic role of knowledge management in nonprofit organisations

Australian nonprofit organisations (NFPs) operate in an increasingly competitive marketplace for funding staff and volunteers and donations. In this context, many NFPs are being driven to adopt more commercial practices in order to improve their strategic performance, particularly competitive positioning for donor appeal, staff retention and service strategy and delivery. Knowledge management (KM) is one commercial practice being explored and implemented by the NFP sector to support strategic performance and operations. Although the concept of knowledge management is basically understood, the implications and strategies to pursue this practice in a NFP context are under explored. This paper presents aKMimplementation planning framework for discussion and further research in the NFP sector. Specifically, this paper proposes that NFP's unique missions, many and varied organisational structures and operational maturity requires a customised approach to knowledge management. Implications for competitive strategy and performance are discussed. (C) 2007 John Wiley & Sons, Ltd.