Knowledge Management in Service-Based Industry

KnowledgeManagement in Service-Based Industry

KnowledgeManagement in Service-Based Industry

Qualitymanagement and knowledge management are critical concepts that canmake significant contributions to the service-based industry. Qualitymanagement is a process that ensures services rendered by a firm meetthe quality standards, which is accomplished through quality control,quality planning, and quality assurance (Gharakhani, Rahmati,Farrokhi &amp Farahmandian, 2013). Knowledge management, on theother hand, refers to a process through which the organizationcaptures, shares, and effectively makes use of the knowledge (Rasula,2012). Although the two concepts are important, knowledge managementis broader and more appropriate for service firms operating in thecontemporary economic and business environments.

Theprocess of creating, planning and utilizing knowledge contributestowards the achievement of the organizational objectives andimprovement of the organizational performance at the same time. Inaddition, KM has a positive impact on the innovation, employee, andservice improvement (Assegaff, Hussin &amp Dahlan, 2013). Thisimplies that KM, unlike quality management, focuses on theimprovement of employees over time, which is critical in the serviceindustry since the quality of service rendered depends on the qualityof knowledge that employees possess. Moreover, organizationsoperating in the service industry depend on the knowledge that isanchored in the minds of employees, which means that managing thatknowledge is the only way to guarantee quality services. Therefore,delivery of quality services should begin with the management ofknowledge.

Inconclusion, knowledge management stimulates innovation and helps theorganization retain the knowledge it requires to deliver qualityservices to its target customers. This means that KM goes beyondquality management because it seeks to benefit both the employee andthe employer, unlike quality management that focuses on the qualityof services delivered to clients. In essence, retaining knowledge isessential in the current business environment that is characterizedby rapid changes in technology, and this can only be achieved throughknowledge management.


Assegaff,S., Hussin, B. &amp Dahlan, M. (2013). Knowledge management systemsas enablers of knowledge management practices in virtualcommunication. InternationalJournal of Computer Science,10 (1), 685-688.

Gharakhani,D., Rahmati, H., Farrokhi, M. &amp Farahmandian, A. (2013). Totalquality management and organization performance. AmericanJournal of Industry Engineering, 1(3), 46-50. DOI: 10.12691/ajie-1-3-2

Rasula,J. (2012). The impact of knowledge management on organizationalperformance. Economicand Business Review,14 (2), 147-168.

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