This paper presents a critique of expected utility theory as a descriptive model of decision making under risk, and develops an alternative model, called prospect theory. Choices among risky prospects exhibit several pervasive effects that are inconsistent with the basic tenets of utility theory. In particular, people underweight outcomes that are merely probable in comparison with outcomes that are obtained with certainty. This tendency, called the certainty effect, contributes to risk aversion in choices involving sure gains and to risk seeking in choices involving sure losses. In addition, people generally discard components that are shared by all prospects under consideration. This tendency, called the isolation effect, leads to inconsistent preferences when the same choice is presented in different forms. An alternative theory of choice is developed, in which value is assigned to gains and losses rather than to final assets and in which probabilities are replaced by decision weights. The value function is normally concave for gains, commonly convex for losses, and is generally steeper for losses than for gains. Decision weights are generally lower than the corresponding probabilities, except in the range of low prob- abilities. Overweighting of low probabilities may contribute to the attractiveness of both insurance and gambling. EXPECTED UTILITY THEORY has dominated the analysis of decision making under risk. It has been generally accepted as a normative model of rational choice (24), and widely applied as a descriptive model of economic behavior, e.g. (15, 4). Thus, it is assumed that all reasonable people would wish to obey the axioms of the theory (47, 36), and that most people actually do, most of the time. The present paper describes several classes of choice problems in which preferences systematically violate the axioms of expected utility theory. In the light of these observations we argue that utility theory, as it is commonly interpreted and applied, is not an adequate descriptive model and we propose an alternative account of choice under risk. 2. CRITIQUE

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Prospect theory: an analysis of decision under risk

Knowledge is a broad and abstract notion that has defined epistemological debate in western philosophy since the classical Greek era. In the past few years, however, there has been a growing interest in treating knowledge as a significant organizational resource. Consistent with the interest in organizational knowledge and knowledge management (KM), IS researchers have begun promoting a class of information systems, referred to as knowledge management systems (KMS). The objective of KMS is to support creation, transfer, and application of knowledge in organizations. Knowledge and knowledge management are complex and multi-faceted concepts. Thus, effective development and implementation of KMS requires a foundation in several rich literatures.

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Review: Knowledge management and knowledge management systems: conceptual foundations and research issues

A hallmark of the new economy is the ability of organizations to realize economic value from their collection of knowledge assets as well as their assets of information, production distribution, and affiliation. Despite the competitive necessity of becoming a knowledge-based organization, senior managers have found it difficult to transform their firms through programs of knowledge management. This is particularly true if their organizations have long histories of process and a tradition of business success. This research examines the issue of effective knowledge management from the perspective of organizational capabilities. This perspective suggests that a knowledge infrastructure consisting of technology, structure, and culture along with a knowledge process architecture of acquisition, conversion, application, and protection are essential organizational capabilities or preconditions for effective knowledge management. Through analysis of surveys collected from over 300 senior executives, this research empirically models and uncovers key aspects of these dimensions. The results provide a basis for understanding the competitive predisposition of a firm as it enters a program of knowledge management.

Knowledge Management: An Organizational Capabilities Perspective

Total Quality Management (TQM) has become, according to one source, ‘as pervasive a part of business thinking as quarterly financial results,’ and yet TQM's role as a strategic resource remains virtually unexamined in strategic management research. Drawing on the resource approach and other theoretical perspectives, this article examines TQM as a potential source of sustainable competitive advantage, reviews existing empirical evidence, and reports findings from a new empirical study of TQM's performance consequences. The findings suggest that most features generally associated with TQM—such as quality training, process improvement, and benchmarking—do not generally produce advantage, but that certain tacit, behavioral, imperfectly imitable features—such as open culture, employee empowerment, and executive commitment—can produce advantage. The author concludes that these tacit resources, and not TQM tools and techniques, drive TQM success, and that organizations that acquire them can outperform competitors with or without the accompanying TQM ideology.

Total quality management as competitive advantage: A review and empirical study

Organizations are attempting to leverage their knowledge resources by employing knowledge management (KM) systems, a key form of which are electronic knowledge repositories (EKRs). A large number of KM initiatives fail due to the reluctance of employees to share knowledge through these systems. Motivated by such concerns, this study formulates and tests a theoretical model to explain EKR usage by knowledge contributors. The model employs social exchange theory to identify cost and benefit factors affecting EKR usage, and social capital theory to account for the moderating influence of contextual factors. The model is validated through a large-scale survey of public sector organizations. The results reveal that knowledge self-efficacy and enjoyment in helping others significantly impact EKR usage by knowledge contributors. Contextual factors (generalized trust, pro-sharing norms, and identification) moderate the impact of codification effort, reciprocity, and organizational reward on EKR usage, respectively. It can be seen that extrinsic benefits (reciprocity and organizational reward) impact EKR usage contingent on particular contextual factors whereas the effects of intrinsic benefits (knowledge self-efficacy and enjoyment in helping others) on EKR usage are not moderated by contextual factors. The loss of knowledge power and image do not appear to impact EKR usage by knowledge contributors. Besides contributing to theory building in KM, the results of this study inform KM practice.

Contributing knowledge to electronic knowledge repositories: an empirical investigation

One of the most effective avenues toward improvement is the process of internal benchmarking—identifying, sharing, and using the knowledge and "best practices" inside one's organization. But the process can be tricky and time consuming because of obstacles such as ignorance about resources or others' needs, a culture that values personal expertise more than knowledge sharing, and a lack of resources for implementation of best practices. This article explores how organizations conduct successful internal benchmarking, relating details ranging from requirements for successful transfer to lessons learned.

If Only We Knew What We Know: Identification and Transfer of Internal Best Practices

If only we knew what we know

Does managing and transferring knowledge really work? Absolutely. Dramatic results for a growing number of companies—large and small, private and public—have encouraged other organizations to follow suit.

C. Jackson Grayson

Papers

If Only We Knew What We Know: Identification and Transfer of Internal Best Practices

If only we knew what we know

Knowledge transfer: Discover your value proposition

Decisions Under Uncertainty: Drilling Decisions By Oil and Gas Operators

Decisions Under Uncertainty: Drilling Decisions by Oil and Gas Operators.