6.6. Strategy significance
A well-formulated business strategy provides focus and direction for resources utilization and business operations. Researchers suggest the Internet is a complementary component of business strategy in delivering unique customer options and value [43], [70] and [71]. Strategic thinking is also critical for successful management of organizational knowledge for mass customization. Strategic formulation provides the context for knowledge management by revealing external threats and opportunities and identifying organizational strengths and weaknesses. Such findings will help an organization specify its knowledge requirements, which in turn become the basis for subsequent knowledge management activities [70] and [71].
The potential synergy between knowledge management and e-commerce has been noted in both the information systems and the marketing literature in process impact, community and content, and system architecture. The process impact point of view stresses the increasing demand for in-depth knowledge in implementations of e-business processes and views knowledge management's role in change management. Fahey et al. [42] suggest knowledge management is valuable in evaluating the what, how and why aspects of e-business operations.
6.7. Network economies
Both e-commerce applications and knowledge management implementations are governed by network economies. A knowledge-sharing network functions best when backed by enough active members contributing to the knowledge base and applying the knowledge acquired [33], [45] and [72]. Song and Shepperd [73] found web use clustering, web page clustering and access path recognition useful for mass customization and personalization and are important issues for e-commerce.
Knowledge as a strategic asset must be managed [74]. Since business models are changing to include technology, it stands to reason the links between technology and knowledge must change. For example, the value-added content in website design has been recognized as an important factor influencing online shoppers’ perception and their shopping behavior [75] and [76]. True value-added content of a website can only be produced and sustained through a viable knowledge management program. Huosong et al. [77] agree an understanding of how the design of a knowledge management system affects both its use and definition is still limited, but Malhotra [78] confirms knowledge creation is relevant to e-business and e-commerce but notes, knowledge management technologies do not always deliver the right information to the right person at the right time. Also they cannot store human intelligence or experience and the knowledge management technologies cannot distribute human intelligence.