**2.1 Knowledge management**

The inclusion of 'knowledge management' as an organisational concept has been attributed to the McKinsey consulting firm in 1987 when they implemented a motion study of their information handling and utilisation processes [25]. For the purposes of this chapter, KM is defined as the systematic approach to the management of information and knowledge within a firm, including the identification, acquisition, storage, sharing, conversion, and application of knowledge for firm processes [26]. KM as an organisational process, therefore, seeks to facilitate the collection, application and development of firm knowledge to establish and sustain competitive advantage across three specific dimensions: (a) the strategic dimension—i.e., related to the strategic importance of knowledge and its management, (b) the managerial dimension—i.e., related to firm knowledge assessment and management, and (c) the operational dimension—i.e., related to the development and usage of knowledge and intellectual asset. The effective management of KM requires the firm to invest in knowledge management infrastructure—the key elements of this infrastructure will be discussed in the next section.
