Elaboration Likelihood in Knowledge Management: A Model and Experimental Test Kelly J. Fadel Utah State University kelly.fadel@usu.edu Alexandra Durcikova The University of Arizona alex@eller.arizona.edu Hoon S. Cha Salisbury University hscha@salisbury.edu Abstract Understanding knowledge transfer using computer-mediated context is becoming essential given that organizations are spread more and more globally. In this paper, we adopt elaboration likelihood theory to investigate knowledge transfer processes in a Knowledge Management System (KMS). We report the results of an exploratory experiment conducted to examine the impact of argument quality, source credibility and validation on knowledge usefulness of a document in a KMS. Our findings indicate that while validation of knowledge in KMS positively affects perceptions of knowledge usefulness, higher argument quality was associated with lower usefulness ratings. Surprisingly, source credibility has no effect on perceptions of knowledge usefulness. The implications of these results for both researchers and practitioners are discussed. 1. Introduction In an effort to improve the productivity and efficiency of an entire organization, many companies are devoting great effort to managing their knowledge capital through centralized knowledge management systems (KMS) [1]. The role of KMS becomes increasingly important as knowledge capital stored in the repository is not limited to the traditional customer and product data but now includes valuable “best practices” that can be adopted and reused by the individual employees through a meaningful knowledge transfer process. KMS can potentially support and enhance knowledge transfer by providing ready access to knowledge across personal, departmental, organizational boundaries. Despite this potential, however, KMS can effectively support transfer only to the extent that the knowledge they provide is effectively processed, adopted, and utilized by individual knowledge users [2]. To date, previous research investigating the mechanisms that govern how individuals adopt and internalize KMS knowledge is scant. This paper presents the results of an exploratory research study that investigates how individuals in an organization process and perceive the usefulness of knowledge retrieved from a knowledge repository. A survey was conducted in an experimental setting where subjects are asked to use a mock KMS to make a recommendation. We build and test hypotheses based on theories of information influence [3, 4] and organizational knowledge transfer in mediated contexts [5] to better understand the process by which knowledge in a KMS is evaluated and used by individuals. 2. Theoretical Background & Hypotheses 2.1 KMS and Knowledge Transfer Organizational knowledge transfer involves the conveyance of knowledge from a source to where it is needed within the organization, and has been identified as a critical component of successful knowledge management practice [6, 7]. Knowledge transfer can occur between and among individuals, departments, teams, and organizations themselves [5, 7]. In many cases, transfer transpires at the direct interface between two knowledge-bearing entities, such as one individual verbally imparting knowledge to another. However, in today’s distributed work environment, transfer increasingly takes place across mediated channels of communication in which the knowledge source and knowledge recipient are geographically and temporally disconnected. In such cases, the role of the intervening knowledge medium becomes a key enabler of the knowledge transfer process. In many ways, information technology is an ideal vehicle for supporting mediated knowledge transfer. Knowledge from a source can be stored within an information system for later retrieval and use by one or many knowledge consumers. This function constitutes the essence of knowledge management systems, which are designed and implemented to facilitate storage, Proceedings of the 41st Hawaii International Conference on System Sciences - 2008 1530-1605/08 $25.00 © 2008 IEEE 1