Knowledge Strategy As A Contingency Affecting Nsd Best Practices

Knowledge is increasingly evolving as a key factor differentiating customer offerings. How knowledge is exploited in developing and delivering service offerings provides the basis for competitive differentiation. Ultimately the provider gains and retains customers by offering services with greater value than competitive alternatives. Differences for which customers are willing to pay are ultimately backed-up by some type of knowledge capability affecting the experience of customers. However, the value proposition of service offerings varies widely. One type of customer offering is valued because of explicit knowledge that is embedded externally in codified forms. An alternative type deals with tacit knowledge which is often internal to the personal skills and capabilities of people developing and delivering services. The extent to which the troika of practices in the composite model are contingent upon the type of knowledge for which customers are willing to pay is explored. Computer Information Technology (CIT) practices are postulated as best suited for exploiting explicit, codified knowledge. Conversely, human capital associated with Organic Team Structure (OTS) is presumed to be relatively more effective for offering customers value from tacit knowledge.