Innovation in Services: The Need for Knowledge Management

This paper reports the findings of a research investigation into the effect of knowledge management (KM) on the performance of programme-level services innovation. It explores the factors which influence the way in which the "task knowledge" required to complete the new service development (NSD) process is created, transferred and stored. Based on results of a large survey of UK-based service companies, a number of underlying dimensions of KM activities are identified. Knowledge creation consists of a learning culture, an entrepreneurial climate, organisational creativity and a shared vision. Knowledge transfer is characterised by collaborative working, rich communication, empowerment and shared knowledge. Knowledge storage comprises knowledge systems, decision systems and documentation. A strong relationship between KM and the success and innovativeness of a NSD programme is demonstrated.