The purpose of the paper is to suggest a novel approach that groups the theories of systems, information and bounded rationality into organizational knowledge management. We base our discussion on knowledge process mapping akin to the supply chain perspective. This is done to understand the governing principles of knowledge movement within an organizational system, and how the different functions within that system behave and interact among themselves in managing knowledge. We attempt to understand the impact of organizational structure in knowledge transfer and utilization among the different participating functions in the perspective of systems theory. Based on this framework the paper then makes use of information theory to comprehend the ideas behind an effective process of knowledge movement in any organization, and the probable factors that influence such movements. Lastly the concepts of bounded rationality are brought in, to examine the behaviors and interactions of these functions in creating, exploiting and sharing knowledge towards an effective knowledge management system.
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