exploring stakeholder knowledge partnerships in a knowledge city: a conceptual model
TRANSCRIPT
Exploring stakeholder knowledgepartnerships in a knowledge city:a conceptual model
Kostas Metaxiotis and Kostas Ergazakis
Abstract
Purpose – Knowledge cities (KCs) are cities in which both the private and the public sectors value
knowledge, nurture knowledge, spend money on supporting knowledge dissemination and discovery
and harness knowledge to create products and services that add value and create wealth. Knowledge
cities fall under a new area of academic research entitled knowledge-based development (KBD), which
brings together research in urban development and urban studies and planning with knowledge
management and intellectual capital. The purpose of this paper is to advance the research in the KC
area by exploring stakeholder knowledge partnerships in a knowledge city.
Design/methodology/approach – Based on their previous research, the authors’ main discussion
highlights the need for more effective local government and stakeholder knowledge partnerships to
better support knowledge management (KM) initiatives in a KC and proposes a conceptual model, as a
good research starting-point, to assist local governments develop and capitalize on more effective
knowledge-based stakeholder partnerships.
Findings – The main issues related to local government-stakeholder partnerships are discussed and
several processes are analyzed that can facilitate more effective two-way knowledge transfers between
local government and stakeholders in a KC, which are fundamental for establishing successful
knowledge partnerships.
Research limitations/implications – It would be interesting and useful to deepen the analysis made by
the authors and look for more fundamental reasons behind their observations.
Originality/value – The main advantage of this paper is that it proposes a simplified conceptual model
for stakeholder knowledge partnerships in knowledge cities.
Keywords Cities, Knowledge management, Regional development
Paper type Research paper
1. Introduction
Over the past several years, there have been intensive discussions about the importance of
KM in the business world. Nowadays, knowledge is considered to be one of the most
valuable assets of an enterprise, one which has to be managed efficiently and effectively in
order to gain a competitive advantage in the knowledge economy era. The essence of KM is
to provide strategies to get the right knowledge to the right people at the right time and in the
right format (Wiig, 1997; Wilkins et al., 1997; Ergazakis et al., 2005).
However, KM has evolved into a strategic management approach, finding applications not
only in the business world but also in other areas such as education, government and
healthcare. The fact that major international organizations – such as the European
Commission (2000), the World Bank (1998), the United Nations (2001) and the Organization
for Economic Cooperation and Development (2001) – have adopted KM frameworks in their
strategic directions regarding global development clearly indicates that a new link has been
created between KM and knowledge-based development (Carrillo, 2002, 2004; Komninos,
2002; Metaxiotis and Psarras, 2004a, b; Ergazakis et al., 2004).
DOI 10.1108/13673270810902993 VOL. 12 NO. 5 2008, pp. 137-150, Q Emerald Group Publishing Limited, ISSN 1367-3270 j JOURNAL OF KNOWLEDGE MANAGEMENT j PAGE 137
Kostas Metaxiotis is an
Advisor to the Secretary for
the Information Society in
the Greek Ministry of
Economy and Finance,
Athens, Greece.
Kostas Ergazakis is a
Senior Researcher at the
School of Electrical and
Computer Engineering,
National Technical
University of Athens
(NTUA), Athens, Greece.
In a knowledge economy, urban form and functions are primarily shaped by global market
forces rather than urban planning. As the role of knowledge in wealth creation becomes a
critical issue in cities, urban administrations and planners need to discover new approaches
to harness the considerable opportunities of abstract production for a global order
(Yigitcanlar et al., 2008a, b).
In this way, the new link between knowledge management and knowledge-based
development created the appropriate environment for the advent of a new concept in the
scientific and practitioners’ communities, the concept of ‘‘knowledge city’’ (KC). Nowadays,
the theme of KCs is a ‘‘hot’’ topic of interest and discussion. Many cities globally claim
themselves as being already KCs while at the same time other cities have elaborated
strategic and action plans in order to become KCs in the near future.
In this paper, the authors proceed to further research in the KC area by exploring
stakeholder knowledge partnerships in a knowledge city. Based on their previous research,
the authors’ main discussion highlights the need for more effective local government (i.e.
municipality) and stakeholder knowledge partnerships to develop better knowledge
management (KM) initiatives in a KC and proposes a conceptual model, as a good research
starting point, to assist local governments to develop and capitalize on more effective
knowledge-based stakeholder partnerships.
The remaining part of the paper is structured as follows: in the next section, the main issues
of KCs are briefly explored, for the benefit of readers who may be unfamiliar with the theme.
In what follows, we present a literature review concerning success or failures of KCs in
practice. Then, we discuss main issues related to stakeholder knowledge partnerships in a
KC and present a conceptual model, as a good research starting-point, to assist local
governments develop and capitalize on more effective knowledge-based stakeholder
partnerships. Finally, conclusions and ideas for further research are suggested.
2. Key concepts of KCs: a brief overview
According to Ergazakis et al. (2004):
A KC is a city that aims at a knowledge-based development, by encouraging the continuous
creation, sharing, evaluation, renewal and update of knowledge. This can be achieved through
the continuous interaction between its citizens themselves and at the same time between them
and other cities’ citizens. The citizens’ knowledge-sharing culture as well as the city’s appropriate
design, IT networks and infrastructures support these interactions.
This definition is illustrated in Figure 1.
The process of developing a KC is neither quick nor simple, since this concept refers to
many different aspects of life in a city. Consequently, any effort to develop a KC should
have assured in advance the active support of the entire society, i.e. local government,
citizens, private sector, organizations, universities etc. The whole process requires an
in-depth analysis of the current situation, definition of a vision and strategy, and
implementation of an action plan with particular attention paid to fundamental aspects
such as the revitalization and regeneration of traditional infrastructures and investments in
technology infrastructures.
The main advantage of a KC is that, by definition, it functions in such a way that is in favor of
its knowledge-based development. The benefits of a KC, on a more local scale, are the
following:
‘‘ In a knowledge economy urban form and functions areprimarily shaped by global market forces rather than urbanplanning. ’’
PAGE 138 j JOURNAL OF KNOWLEDGE MANAGEMENTj VOL. 12 NO. 5 2008
B strong dynamics of innovation across all sectors of economic and social activity (Amidon
and Davis, 2004);
B better education services;
B creation of knowledge communities that provide ‘‘just-in-time’’ knowledge when it is
needed;
B citizens are actively involved in the development of their city, its identity and its unique
character;
B creation of more and well-paid employment (SGS Economics, 2002);
B faster growth in the community’s income and wealth (SGS Economics, 2002);
B a more sustainable economy (SGS Economics, 2002);
B revitalization of traditional industries (SGS Economics, 2002);
B a boost to tourism (SGS Economics, 2002);
B a boost to the city’s pride and confidence, which acts as a platform for reinvestment of
local capital into the local economy (SGS Economics, 2002);
B creation of a tolerant environment towards minorities and immigrants (City of Barcelona,
1999); and
Figure 1 The KC concept
VOL. 12 NO. 5 2008 j JOURNAL OF KNOWLEDGE MANAGEMENTj PAGE 139
B greater opportunities to share wealth through investment in the public domain (parks and
gardens, public transport, cultural facilities, etc.) and better funding of social safety nets
(SGS Economics, 2002).
Moreover, a KC is structured in a way that contributes to the better functioning of democracy,
by online knowledge-sharing among all citizens, provision of inexpensive, real-time access
to consistent, up-to-date information facilities, support for online debates, etc. We should
also underline the fact that the ‘‘digital divide’’ is replaced with ‘‘digital inclusion’’ and the
benefits of technology flow to all members of the community.
3. KC success stories and failures: a literature review
A review of the literature related to KCs reveals that since this concept is new, its real
success is still under investigation in the research community. There is little in terms of
development and assessment, frameworks for KCs, and consequently little consensus
regarding the design requirements and the development parameters for building a
successful KC (Carrillo, 2004).
Carrillo (2004) outlines a theoretical and methodological framework for the design,
assessment and benchmarking of KCs, based on social knowledge capital accounts as the
common ground for work between KM and the field of urban studies and planning.
Ergazakis et al. (2004) present some aspects and benefits of the KC concept, key success
factors related to it as well as some case studies from real life examples. Gonzalez Ovalle
et al. (2004) provide organized, synthesized information related to initiatives of KCs,
knowledge regions and knowledge countries. The information is collated and integrated into
a number of categories under the field of knowledge-based development. Baqir and
Kathawala (2004) present a KC model by constructing knowledge homes using building
blocks of futuristic technology than can help in implementing the concept of virtual ba to
share, manage and create knowledge.
Chen andChoi (2004) highlight the role of three interrelated processes that create and transfer
tacit knowledge for the creation of successful KCs. Garcia (2004) reviews the theoretical
background behind the concept of KCs and knowledge-based development. She argues that
one of themost problematic practicalities of the knowledge-basedmodels and KCs proposals
has been to operationalize the theoretical variables into measurable equivalences or
quantifiable units. Chatzkel (2004) provides a strategic perspective to better understand the
necessary elements for building a successful knowledge capital. Dvir and Pasher (2004)
explore the concept of urban innovation engines and their importance for the development of
KCs. Cheng et al. (2004) provide some insights to policy makers in designing or developing
global cities, by discussing the connection between KM and growth of KCs.
Failure factors in the development of a KC must not be ignored. Some cities have been
proved unable to be developed as KCs, despite deploying considerable efforts and
investing considerable amounts to this end. For instance, in the case of Pittsburgh,
insufficient attention has been paid to the needs and expectations of workers in
knowledge-based industries, in terms of quality of life and arts and cultural attractions,
although strong investments have been made in other areas such as transport
infrastructures. The report of the Montreal KC Advisory Committee (2003) provides more
detailed information about this and other ‘‘failure’’ cases and it also gives some
characteristics of failures.
Ergazakis et al. (2006a), based on the analysis and evaluation of successful knowledge
cities cases, drew a pattern of the recurrence of significant features of knowledge cities.
Their key findings were expressed as a framework for designing, developing and operating
successful knowledge cities. Figure 2 shows this framework.
Moreover, Ergazakis et al. (2006b) have introduced the KnowCis methodology for the
integrated development of KCs (Figure 3). The first priority of the methodology is the
setting-up of a committee (Knowledge City Committee, or KCC) which is responsible, along
with the city’s local government, for the consultation and coordination of the whole effort,
from its very beginning. Government representatives and representatives of citizens,
PAGE 140 j JOURNAL OF KNOWLEDGE MANAGEMENTj VOL. 12 NO. 5 2008
enterprises, cultural organizations, other public entities, etc., participate equally in the KCC.
The methodology consists of five main phases:
1. Diagnosis. Before any attempt to outline a strategy, the KCC proceeds to a thorough
diagnosis of the current city’s status as a KC, based on studies, opinion polls and
qualitative evaluations. Moreover, this phase includes the definition of a series of
qualitative and quantitative indicators.
2. Formulation of strategy. The diagnosis of the previous phase is important for the
formulation of strategy that will be adopted. This strategy considers nine dimensions
comprising sets of particular actions and interventions. The specific characteristics,
particularities, strengths and weaknesses of the city determine which actions and
interventions are needed as well as the priority of each one. Their implementation
contributes to the attainment of various objectives which are important for the success of
a KBD effort (Ergazakis et al., 2006b).
3. Creation of detailed action plan. This phase is devoted to the creation of a detailed action
plan for realizing the defined strategy. The action plan comprises specific projects to be
implemented (project-oriented approach) as well as interventions in specific processes
that need improvement (process-oriented approach). Each project or intervention is
thoroughly selected, designed and prepared. They incorporate, by design, a component
related to continuous sharing of knowledge. Obviously, the appropriate financing must be
assured in advance.
4. Implementation. The KCC, the agencies and stakeholders participating in it, local
government, and other public or private organizations and companies implement the
defined measures and projects. In this way, each stakeholder remains committed and
contributes to the effort.
Figure 2 Common features of successful knowledge cities
VOL. 12 NO. 5 2008 j JOURNAL OF KNOWLEDGE MANAGEMENTj PAGE 141
Figure 3 The KnowCis methodology
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5. Measurement/evaluation. It is essential to measure the progress of the whole effort and
evaluate the performance of the city as a KC, based on indicators and the consultation of
evaluation experts.
Horizontal aspects are also considered, i.e. the open and equal participation of all citizens
and stakeholders, the commitment of political and societal leadership, and the KM
procedures related to the effort. For further details on the method, see Ergazakis et al.
(2006b). Phase 2 of the methodology is the most complicated and critical for the success of
the whole effort. It incorporates nine different dimensions and 25 actions, which are related
to many of the aspects of social, economic and cultural life in a city. In this way, phase 2 is
supported by a decision support model (depicted in Figure 4; see Ergazakis et al., 2007b),
which consists of five main building blocks:
1. Identification. This building block concerns the identification, based on the international
experience of KCs and other KBD strategies and approaches, of 25 actions (Aij),
belonging to the nine dimensions (Di) (i¼1, 2 . . . , 9).
2. Modeling. This building block concerns the modeling of the available actions that a KC
can select so as to formulate its strategy, via the development of appropriate decision
indicators.
3. Assessment. This building block concerns the assessment of the necessity for each
action Aij. This is done through the value control of the decision indicators, as identified in
the previous stage.
4. Action’s form. After the assessment of each action’s necessity, the model concentrates on
the historic evolution of the main and secondary indicators (through the use of evolution
indicators) as well as on the projects/processes related to the actions during the last year
(action plan, phases 3 and 5 of the KnowCis), so as to propose the most appropriate form
for each action, i.e. continuation/preservation of existing projects/processes, design and
implementation of new projects/processes, or modification/re-engineering of existing
projects/processes.
5. Prioritization. The last building block receives input from the previous stages, i.e. the
group of needed actions, so as to evaluate them and create a priority list that should be
considered by the city during the forthcoming period. This evaluation is based on the
quantification of multiple qualitative judgments, using a multi-criteria decision making
(MCDM) method, ELECTRE III. For this purpose, a series of six criteria has been defined.
Moreover, an AI-based decision support system for designing such strategies, by selecting
and prioritizing the most appropriate interventions and actions, has been developed
(Ergazakis et al., 2007c; Ergazakis et al., 2007a, 2008). The system consists of two
subsystems. The first (developed using the technology of expert systems) assesses the
necessity of a particular intervention and proposes its most appropriate form. The second
prioritizes the selected interventions based on multi-criteria decision-making.
4. Local government and stakeholder partnerships in a knowledge city
In general, stakeholders may include any person or organization whose interest may be
positively or negatively affected; this includes government organizations and private
businesses of all sizes, local authorities, the general community, other interested parties
such as voluntary and community organizations, disadvantaged groups and people of
non-native language speaking backgrounds. In a KC, every KM initiative should involve, by
definition, a wide range of relationships between local government (i.e. municipality) and the
relative stakeholders, in order that nobody is excluded.
Based on the five main phases of KM, as presented in Figure 1, the primary purpose of local
government and stakeholder partnerships in a KC is the facilitation of effective transfer of
scientific-based and socially based knowledge, held by stakeholders, to the local
government and vice versa. This knowledge then needs to be effectively captured and
embodied within the local government (i.e. within its administrative processes, practices,
culture, etc.), disseminated to the citizens of the KC, and finally applied so as to create new
VOL. 12 NO. 5 2008 j JOURNAL OF KNOWLEDGE MANAGEMENTj PAGE 143
Figure 4 The decision support model for a KC’s strategy formulation
PAGE 144 j JOURNAL OF KNOWLEDGE MANAGEMENTj VOL. 12 NO. 5 2008
knowledge. It appears that the local government and stakeholder partnership is among the
most important factors contributing to the knowledge creation process. This perspective is
also consistent with commercial objectives that predominately emphasize a one-way
transfer of knowledge from customers to organizations or companies (Blosch, 2000).
Figure 5 depicts this one-way transfer of knowledge.
However, a public sector perspective of the stakeholder as a customer seems more closely
akin to a two-way transfer of knowledge (Barnes et al., 2003), suggesting that government
also needs to focus on KM processes that transfer certain knowledge back to stakeholders,
as feedback. Indeed, a two-way knowledge transfer could assist local government in
achieving greater stakeholder participation and knowledge sharing, while also
demonstrating public accountability. Thus, it can be considered as a strongly interactive
process. This transfer of knowledge is also the essence of the KC concept, and contributes
significantly to the knowledge-based development of a region. It is depicted by the two-way
arrow in Figure 6.
On the other hand, although from a conceptual perspective it seems relatively easy to
accept that effective local government and stakeholder partnerships are important for good
KM in a KC, in practice this is difficult to achieve due to often diverse stakeholder views and
interests as well as due widely varying stakeholder capacity to interact effectively with public
sector organizations. There is no doubt that KM in a KC is more effective when stakeholders
are able and willing to participate effectively; doing so, however, involves a sound and
complete understanding of options and issues. Stakeholder capability, including skills and
resources, to participate in KM initiatives may vary widely, especially when complex
Figure 5 The one-way knowledge transfer from customers to companies/organizations
Figure 6 The two-way knowledge transfer from stakeholders to local government
VOL. 12 NO. 5 2008 j JOURNAL OF KNOWLEDGE MANAGEMENTj PAGE 145
financial, social and practical issues are involved. Hence, local government needs to identify
potential barriers to effective knowledge transfer and sharing, such as language, physical
and education disparities, cultural and gender differences, as well as resources and time
constraints within stakeholder groups, and also needs to design appropriate interventions,
policies and actions so as to overcome these barriers.
Appropriate KM practices, guided by a clear vision, may be used to develop more effective
knowledge partnerships with stakeholders in a KC, including education programs, dialog
programs and effective networks. Effective dialog in particular seems to be essential
because people often do not articulate their values easily or may not even understand them
(Lesser et al., 2000). In addition, local government faces significant challenges in
developing effective stakeholder partnerships when there are imbalances in knowledge
sharing capability, which are perhaps most evident in marginalized groups that are
frequently excluded (by social exclusion) from KM initiatives.
Based upon the above discussion, the authors propose that the potential quality of local
government and stakeholder partnerships in a KC can be presented as a function of two
important parameters:
1. stakeholders’ capacity to participate effectively; and
2. the effectiveness of efforts made by local government to address gaps in knowledge
transferring capability through specifically customized policies, strategies and
interventions.
Figure 7 illustrates possible stakeholder groups and their relative positioning in a
two-dimensional model, with the degree of boldness of the arrows indicating the relatively
higher amount of effort required to construct a good quality partnership.
Successful KM in a KC seems to depend on the efficient and effective coordination of
many stakeholders, as shown in Figure 7, necessitating a chain of processes that
involve analysis, evaluation and reconsideration. Local government can form different
types of knowledge-based partnerships with stakeholders, ranging from a simple
exchange of information through to full collaboration, based on shared resources.
Effective transfer of knowledge between stakeholders and local government requires
clear KM goals and strategies, and their successful implementation through effective
leadership. While the KM literature suggests that effective knowledge transfer results
from knowledge-effective and closed-loop stakeholder communications, including
feedback provided to stakeholders through dialogue (Wiig, 2002), there is little
practical advice available on how the transfer of knowledge between local government
and its stakeholders can be enhanced in a KC. In any case, it seems that if KM
Figure 7 Conceptual model for stakeholder knowledge partnerships in knowledge cities
PAGE 146 j JOURNAL OF KNOWLEDGE MANAGEMENTj VOL. 12 NO. 5 2008
strategies are not carefully designed, there may be less desirable outcomes, such as
missed opportunities, local government being at risk, or too much attention being paid
to relatively unimportant stakeholders.
Another important factor of the proposed model illustrated in Figure 7 is the need of local
government not only to classify stakeholders meaningfully so as to better understand their
significance, but also to focus on specific sectors in which KM initiatives can take place for
the benefit of a KC’s citizens. In this context, Figure 8 presents the Local
Government-Stakeholder Knowledge Partnerships Target.
This target includes four sectors, as positioned by the crosshairs, with the urgent and
non-urgent dimensions represented by the two circles. Urgent tasks comprise a
considerable portion of the total number of tasks, and the urgency dimension affects all
sectors equally. Indeed the longer a non-urgent task is left and no action is taken, the more
urgent it is likely to become: this is true of all sectors.
In sector 1 the tasks tend to be important and easy and either urgent or non-urgent. This
is a good sector in which to operate and is the sector where knowledge workers should
be working for most of their time. Sector 2 tasks tend to be important and difficult and
can be further divided into urgent or non-urgent. This is the sector where policy makers,
supervisory directors and executive officers should be working for some of their time, as it
is the sector for problem solving and KM strategy development. Sector 3 contains
unimportant and easy tasks, again divided into urgent and non-urgent tasks. Sector 4
also contains urgent and non-urgent tasks, but they are of an unimportant and difficult
nature. Clearly little, if any, time should be spent in sectors 3 and 4 and resources should
not be allocated to them.
From an organizational perspective, the aim is to increase the size of the important and easy
sector by compressing the urgent circle, and moving the vertical axis to the right and the
horizontal axis down. Conceptually, this results in increased number of good KM initiatives in
a KC.
Figure 8 Local Government-Stakeholder Knowledge Partnerships Target
VOL. 12 NO. 5 2008 j JOURNAL OF KNOWLEDGE MANAGEMENTj PAGE 147
Except from these characteristics of KM tasks (easy, difficult, urgent, non-urgent, important,
not important), some other dimensions are also important for their complete description:
B Actors/stakeholders who are currently involved or should be involved in the task – This
dimension is really important, since it provides essential information on the nature of
current actors/stakeholders, on their specific or special characteristics, on their needs,
etc. It also provides information on other potential actors/stakeholders who should be
involved in the particular KM task.
B Interactions with other existing processes and KM tasks in local government – It is easily
understood that this dimension is also important since it highlights any existing
interactions and relations with other existing (or planned) processes and KM tasks in the
city. In this way, the tasks can be managed in an integrated way.
B Cost factors – The final dimension, which is also critical, is related to the cost factors that
should be taken under consideration when considering the particular KM task.
Thus, a KM task, in the framework of the Local Government-Stakeholder Knowledge
Partnerships Target, involves six dimensions in total, as depicted in Figure 9. It should be
noted that the aim of local government when considering such a KM task should be to fully
describe and define the dimensions that are related to it, something that will definitely allow
local government to design and implement the KM task in an unproblematic way.
5. Conclusions
The advantages of a KC on a global scale – as a new model of urban development for
human societies – and also on a more local scale are substantial and attractive, and should
not to be ignored by policy makers and researchers. Because of this, this concept has
begun to attract the interest of the research community and practitioners.
The main objective of this paper is to propose a simplified conceptual model for stakeholder
knowledge partnerships in knowledge cities. The main issues related to local
government-stakeholder partnerships are discussed and several processes are analyzed
that can facilitate more effective two-way knowledge transfer between local government and
stakeholders in a KC, which are fundamental for establishing successful knowledge
partnerships.
In terms of future research, it would be interesting and useful to deepen the analysis made
by the current authors and look for more fundamental reasons behind these observations.
The development of such a theory will give more confidence to the observations. The
development of a unified and coherent methodological approach for building successful
stakeholder knowledge partnerships in KCs is a major stream of future research. Finally, it
would be interesting to develop frameworks and methodologies for the
evaluation/assessment (e.g. with the use of indicators) of possible KM tasks within the
framework of the Local Government-Stakeholder Knowledge Partnerships Target.
Figure 9 The dimensions of a KM task
PAGE 148 j JOURNAL OF KNOWLEDGE MANAGEMENTj VOL. 12 NO. 5 2008
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About the authors
Kostas Metaxiotis is Advisor to the Secretary for the Information Society in the Greek Ministryof Economy and Finance, Athens, Greece. He is also at the Management & Decision SupportSystems Laboratory, School of Electrical and Computer Engineering, National TechnicalUniversity of Athens, Athens, Greece. Kostas Metaxiotis is the corresponding author andcan be contacted at: [email protected]
Kostas Ergazakis is a Senior Researcher at the National Technical University of Athens,Athens, Greece.
PAGE 150 j JOURNAL OF KNOWLEDGE MANAGEMENTj VOL. 12 NO. 5 2008
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