The construct and application of knowledge diffusion model

How to measure knowledge value has become an extremely important issue for enterprise. Only through understanding the change of knowledge value, the performance of knowledge management can be fully investigated. Although activity based costing (ABC) model can evaluate the corresponding knowledge value from the standpoint of enterprise benefits, it cannot predict the future change of knowledge value. Therefore, enterprises have to construct a dynamic model to evaluate and further forecast knowledge value. Since knowledge possesses characteristics of diffusion, depreciation, and growth with time, this study is, therefore, based on diffusion model to construct knowledge diffusion process for single knowledge. In addition, UPEC (Uni-President Enterprise Corporation) of Taiwan promoting quality control circle (QCC) system will be utilized as a case study to illustrate the proposed model. Furthermore, this study will also analyze parameters in the model to help develop a set of effective knowledge management strategies. q 2003 Elsevier Science Ltd. All rights reserved.