The Daily. Thursday, March 21, 2002

Survey of Knowledge Management Practices

The first results from the pilot Survey on Knowledge Management Practices conducted in the fall of 2001 as part of an international initiative headed by the Organisation for Economic Co-operation and Development are available today.

This survey sampled firms in five sub-sectors of the North American Industrial Classification System: forestry and logging; chemical manufacturing; transportation equipment manufacturing; machinery, equipment and supplies wholesaler-distributors; and management, scientific and technical consulting services. The questionnaire was mailed to 407 firms, of which 348, or 86%, responded. These firms represent an estimated 5,245 enterprises in these five sub-sectors.

According to the data, a majority of firms in these five sub-sectors were managing some aspect of their knowledge. Nine out of 10 used at least 1 of 23 business practices related to knowledge management, which involves any systematic activity related to the capture and sharing of knowledge by the organization.

Service industries had the highest average number of practices in use. These industries depend greatly on marketing the application of their workers' knowledge.

On average, firms in all five sub-sectors used 11 knowledge management practices. This ranged from a high of 14 used by firms in management, technical and scientific consulting services to 10 used by firms that were machinery and equipment supplies wholesaler-distributors.

Findings suggest that firms are employing knowledge management practices strategically to improve their competitive performance and productivity. One-half the firms in the five sub-sectors reported that the critical reason they used knowledge management practices was to improve their firm's competitive advantage. About 30% of firms said they used such practices to increase efficiency by using knowledge to improve production processes. About 23% reported that their aim was to train workers to meet strategic objectives of the firm, and another 23%, to integrate knowledge within the firm.

Knowledge sharing, creation, generation and maintenance are perceived as important to a firm's productivity. Almost 9 out of 10 firms reported that the most effective result of using knowledge management practices was improving worker skills and knowledge. The second most effective result was increased worker efficiency and/or productivity.

Firms viewed the loss of key personnel as the main trigger for implementing more knowledge management practices, followed by loss of market share.

The Knowledge Management Practices Survey database is now available. More information will be contained in the report Are we managing our knowledge? Results from the pilot Knowledge Management Practices Survey, which will be available soon.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Louise Earl (613-951-2880; louise.earl@statcan.gc.ca), Science, Innovation and Electronic Information Division.