A Study of the Effectiveness of Global Strategy with Integrated Knowledge (Knowledge Verbund)

— How BASF Executes Knowledge Management —

Abstract

This paper describes that a pragmatic way of knowledge management, which may ensure sustainable growth of companies, is to focus on talent development. The ideal knowledge management is one in which the process of knowledge sharing is embedded in daily operations. Specifically, it says that tacit knowledge is shared by fostering opportunities for knowledge sharing such as waigaya (Honda) etc. However, if knowledge is not viewed as “Knowledge”, but as “Knowing”, its effectiveness is questionable. The suggestion, that fosters a process or place for sharing knowledge will result in an integration of knowledge, is based on the premise that those who receive the knowledge are willing to absorb it. Fostering the will of recipient to absorb the knowledge, which is being spoken and shared, is what makes this premise true and makes possible the creation, sharing, and utilization of knowledge.

By integrating P. F. Drucker's observation that “communication is done by the receiver” into the SECI model developed by I. Nonaka, we present a practical model for knowledge management. In other words, we hypothesize that the foundation of knowledge management is to develop the recipients of knowledge and to enlarge their capacity. BASF's focus on employee development is examined as an effective and pragmatic approach.