Industry 4.0 literature shows that businesses need valuable information management and decision-making. Reviewing management literature, this article builds a framework for the relationship between knowledge management and decision-making. Knowledge management enabling factors and a framework for their relationship to organizational performance and the mediating effect of the knowledge creation process are proposed.
- Tacit knowledge is deeply embedded in an organization, but explicit knowledge is easy to transfer and code.
- Knowledge management takes a ‘keep it, you might need it’ approach to information.
- Knowledge management systems improve organizational processes and reduce operational obstacles.
- Decision-making styles affect knowledge creation and organizational performance.
Managers must steer their teams toward achieving the organization’s goals and objectives. It takes adaptability, skill, and the ability to manage information and effectively make sound decisions. Multiple definitions and interpretations of the term ‘knowledge’ exist. Davenport and Prusak (1998) state that knowledge is the sum of experience, expertise, and value in a given context. Human behavior and thought are influenced by knowledge in many forms, including an organization’s culture, personnel’s abilities, standing in the community, instincts, and the formalized theory that codifies those.