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Author:Ofek, E.
Sarvary, M.
Title:Leveraging the Customer Base: Creating Competitive Advantage Through Knowledge Management
Journal:Management Science
2001 : NOV, VOL. 47:11, p. 1441-1456
Index terms:NETWORK EXTERNALITIES
KNOWLEDGE
KNOWLEDGE MANAGEMENT
COMPETITION
Language:eng
Abstract:Growth and globalization, coupled with recent advances in information technology, have led many firms to introduce sophisticated knowledge management (KM) systems in order to create sustainable competitive advantage. In this paper, the authors analyze how KM is likely to affect competition among such professional services firms. In particular, they first explore what type (supply-side versus demand-side) of economies of scale are likely to be exploited in KM systems. In the former case, KM's role is to reduce the operating costs of the firm, while in the latter case, its role is to create added value to customers by significantly increasing product quality. Second, the authors analyze the competitive dynamics and market structure that emerge as a result of firms competing with KM systems.
SCIMA record nr: 234240
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