Rewards: Do They Encourage Tacit Knowledge Sharing in Management Consulting Firms? Case Studies Approach

Abstract

This chapter will discuss as to whether reward systems will effectively facilitate the sharing and transfer of tacit knowledge amongst consultants in management consulting firms. A research framework was based on the ‘tacit knowledge conversion’ model given by Nonaka and Takeuchi (1995) and the ‘reward classifications’ model by VonKortzfleisch and Mergel (2001). The framework suggests that, with effective implementation, reward systems would encourage the tacit knowledge sharing. A typical example of knowledge-intensive organisation is a management consulting firm in which its success depends heavily on the sharing of tacit knowledge amongst its consultants. Seven senior management executives from different international management consulting firms who have had extensive experience in the consulting industry were interviewed. The study found that reward systems do encourage consultants to share knowledge with each other. It is also found that informal meetings and also offering non-material or ‘soft’ rewards are often cited as a more effective approach to encourage tacit knowledge sharing.