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This paper compares the perceptions of private and public sector managers in regard to knowledge management (KM), using data derived from a survey conducted in Australia. The objective is to develop understanding of the current practice to assist in developing strategies to improve public sector KM practice. Findings revealed that public sector respondents in Australia had a less developed understanding in KM and intellectual capital (IC), as compared to the private sector respondents. This poorer understanding had led to a much weaker KM practice in the public sector: KM initiatives were not commonly addressed at the strategic level; employees were less trained and developed; few measurement systems were developed and almost no incentive and reward measures were established. In addition, public sector respondents were less confident about the roles of organisational culture, organisational structure and IT in KM in their organisation. They had lower agreement on the role of organisational structure, culture and IT as knowledge creation and sharing facilitators. The study, to a certain extent, supports the proposition that industrial context has an effect on managers' perceptions of KM.
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