Money Talks: The role of communication in monetizing knowledge value

Abstract

Purpose – This paper argues that networked knowledge flows constitute the antecedences of knowledge - based value creation , and demonstrate that the knowledge flows themselves can be approximated by particular communication roles within the network . Our argument originates from intellectual capital and knowledge management concepts and infuses it with insight s from the fields of management control systems and communication theory , emphasizing how specific communication roles are focal points in capturing knowledge value creation and its subsequent monetization. Building on the perspective of knowledge as a flow, and postulati ng that value is based on knowledge - in - use – rather than knowledge possession – this paper address the research question: How can we express knowledge in such a way that it can be monetized and opened up for specific managerial interventions ? Design/metho dology/approach – This is a conceptual paper where w e selectively combine management control systems design with communication theory , and explain how the role of communication is the missing link between high - level knowledge resource management and instrumental approaches in capturing knowledge value and allow ing for a connection with monetary value. Originality/value – The contribution of this paper consists of five propositions for future research on how management accounting and control systems can be brought to bear o n knowledge management if the communication aspect is given primary attention . Practical implications – We identify two fundamental premises for the monetization of knowledge resources. First, in order to be valuable, knowledge resources need to be deployed and utilized rather then be merely possessed (owned). This resonates with intellectual capital research emphasizing the need to visualize and identify knowledge process rather than measuring and managing knowledge stocks and assets . Second, 2 following a network argument, the communication of knowledge between network nodes, implies that monetization is based on designing, developing, maintaining, and growing boundary spanning individuals /teams in conjoint specific arenas that are taske d with knowledge value creation.