Knowledge-based strategies for managers in the service sector

Purpose – The purpose of this paper is to propose a new multidisciplinary knowledge management (KM) model for the service sector and to explore its applicability through pilot test research. Design/methodology/approach – Construction and testing of a knowledge-based strategic model for the service industry (maturity level of knowledge usage in service organizations model – MAKUSO model). A questionnaire addressed to senior managers was developed using variables grouped into four KM constructs relating to: human and market capital, processes that facilitate KM and antecedents that contribute toward creating a total and unique service experience. Findings – The Spearman rank order correlations results confirmed the positive effects of leveraged knowledge assets, such as human and market capital, on company performance. The outcome of a principal component analysis indicated that KM needs to be considered at a strategic level to develop processes that encourage a knowledge-based strategy approach; thus the MAKUSO model was found to be a useful framework in support of this approach. Research limitations/implications – The research was limited by its exploratory nature. Use of random sampling right across the board was restrictive as was the small sample size. Practical implications – Effective use of knowledge assets creates the supportive context that enables service managers to develop unique capabilities. This context becomes conducive to service experience authenticity and thus increases customer satisfaction. The findings imply that social networking is a key driver for the effective leveraging of knowledge assets. What appears to be more important is the generation and sharing of new knowledge and less the identification, measurement and warehousing of knowledge already owned by the company. Effective KM is facilitated by “lessons learned”, especially when these are taken into account in planning. Originality/value – The model presented in this study addresses theoretical and empirical gaps in the area of services KM. Its novelty lies in its multidisciplinary and organic approach. The survey findings of the model’s application across a range of service companies provides useful insights on KM implications and raises valuable research questions for a future research agenda in services management.