Knowledge Management Capability Assessment: Validating a Knowledge Assets Measurement Instrument

Measurement of organizational knowledge assets is necessary to determine the effectiveness of knowledge management initiatives. A Knowledge Management Capability Assessment instrument has been developed and operationalized to measure knowledge assets identified as Knowledge Capability Areas. A longitudinal field study is initiated in a large microchip manufacturing company to determine the reliability and validity of the KMCA and to assess the success of KM initiatives. In this paper, we provide the initial validation of the KMCA with empirical evidence from two business units of the company. Confirmatory factor analysis revealed that four Knowledge Capability Areas can be conceptualized in terms of latent descriptor variables. Each capability area is identified as an overall latent factor influencing a set of latent descriptor variables. Second Order and General-Specific structural equation models of each capability area provide evidence of the validity of measurement of these knowledge assets.