Performance measurement systems for knowledge management in high technology industries: a balanced scorecard framework
by Chia-Ling Lee, Sun-Quae Lai
International Journal of Technology Management (IJTM), Vol. 39, No. 1/2, 2007

Abstract: Effectively implementing Knowledge Management (KM) is a strategic process and requires a balanced performance measurement system in high technology industries. The Balanced Scorecard (BSC) is a comprehensive performance measurement model that aligns measurements with a firm's strategy and organises measurements into four perspectives, namely, financial, customer, internal business process and learning and growth. By analysing the data collected from high technology firms in Taiwan, this paper analyses the relative weights placed on the four perspectives of measurements in a BSC framework for KM. In such a performance measurement system for high technology industries, the performance measurements related to the internal business process perspective obtain the highest weight. This result suggests that measuring the performance of the internal business process perspective is more important than that of three other perspectives for high-tech firms. This paper provides evidence showing that high technology firms having a clear description of KM strategy, and linking rewards to KM are more likely to pay attention to measurement performance for KM, especially, the performance measurements related to the customer and internal business process perspectives.

Online publication date: Sun, 29-Apr-2007

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