Developing a Model of Knowledge Transactions: A Critical Review of Background Theories

Interactions between companies, crucial for economic success and knowledge advancement, involve significant exchanges of information and knowledge beyond mere economic transactions. Understanding how businesses can leverage these knowledge transactions (KTs) with trading partners is vital for both Knowledge Management (KM) research and practice. This entails identifying the knowledge essential for fruitful trading relationships, determining how to derive value from these exchanges, deciding what knowledge should be protected or shared, and developing value-adding strategies for knowledge exchange. To address these questions, this paper critically examines possible theoretical foundations for a KT model. It reviews nine notable KM models to assess the insights they provide (or do not provide) into knowledge exchange mechanisms both within organizations and between trading partners. These models provide some fundamental insights, but also have limitations, especially in addressing the "economic value" of knowledge exchanges. The study highlights the need for a comprehensive and effective KT model that positions knowledge exchanges in trading as a core, value-adding component of economic activities and business strategies. After this preliminary review of existing KM models, it suggests a new KT model, and indicates the need for further development towards a more encompassing approach.