Knowledge Flow Audit: Indentifying, Measuring And Managing Knowledge Asset Dynamics

The purpose of this chapter is twofold. Theoretically it hybridizes two management concepts: Intellectual capital (IC) and knowledge flows. By combining these two concepts, the authors seek to illustrate the dynamics of organizations' intellectual capital. In addition to the theoretical and conceptual contribution, this chapter introduces an empirical setting for testing the framework. The purpose of the empirical illustration is not to provide exhaustive and hands-on guidelines for managing knowledge flows but to increase managers' awareness of this highly relevant issue and to offer some suggestions for possible development measures. The knowledge flow audit helps to pinpoint the processes in which IC transforms into value or into some other form. It is based on a fundamental assumption; the dynamics of IC can be demonstrated by examining knowledge flows. Empirical results from the conducted case studies indicate that the knowledge flow audit as a whole and especially the related knowledge flow survey can be successfully used for recognizing and mapping out the dynamics of knowledge assets within a short time period. According to the feedback received from the case studies, the audit provides important information for management purposes by describing the status and accumulation of knowledge assets.