Integrating intra-firm and inter-firm knowledge diffusion into the knowledge diffusion model

Knowledge value and enterprise benefits are closely related. The performance of a knowledge management system can be evaluated when the dynamic relationship between knowledge value and its corresponding enterprise benefits is identified quantitatively. This study introduces five kinds of knowledge diffusion patterns, including knowledge internalization, knowledge externalization, knowledge improvement, external knowledge acquisition, and internal knowledge release, to construct the knowledge diffusion model which integrates the intra-firm and inter-firm diffusion processes simultaneously. An illustrative case demonstrates the feasibility of the proposed model successfully. In addition to the estimation of all parameters involved in the model, the parameter analysis provides some managerial insights into the implementation of the knowledge management system. Therefore, it follows that knowledge can be managed more effectively, and as a result the appropriate knowledge strategies can also be established for enhancing competitiveness.