Formalizing Knowledge Management in KIBS

Knowledge is crucial for organizational development, particularly within the knowledge-based view of organizations, where it’s considered the most valuable strategic resource. Effective knowledge management and continuous learning are essential for innovation in products, services, and processes. Knowledge transfer, both tacit and codified, requires proper tools. Therefore, understanding and designing effective strategies for knowledge management might determine competitive advantage and lead to organizational development. This study examines knowledge management in the Romanian Knowledge-Intensive Business Services (KIBS) sector, known for innovation and high performance. Qualitative research, including 16 in-depth interviews with four Bucharest-based companies, reveals a mixed approach: informal methods coexist with somewhat formal practices led by managers. These companies tend to be unconscious adopters of knowledge management, perceiving it as a blend of formal and informal processes that support flexibility, creativity, and organizational innovation. Benefits considered include data access, knowledge sharing, better decision-making, and increased effectiveness. Overall, knowledge management plays a pivotal role in the success of the investigated KIBS organizations.