Even though this model has an obvious practical approach, it combines altogether principles, systems processes, values and attitudes (Moraga 3). Thus, the Pedler’s model of organizational learning can confuse those managers who will try to apply this model in their companies (Moraga 3). Another critical issue of the Pedler’s model was his failure to propose a practical framework to put the changes of the structures on accounting, control, and information systems into practice (Moraga 6).
According to Tiwana, knowledge management plays a critical role in both operational and strategic planning, because knowledge is a driver of organizational strategy and strategy is a driver of knowledge management (cited by Alstete & Halpern n.p.). Consequently, even the well-developed knowledge management systems will not be successful until there will exist a clear link with the business strategy (Alstene & Halpern, n.p.). Also, there exists a tight relationship between KM and organizational performance, including employee performance, business performance, market performance and intellectual capital (Vidović 6). Thus, it can be concluded that KM strategy can be reflected at the various levels of strategy, for instance: improved communication and employee skills, enhanced collaboration and better decision making, etc. (employee performance); increased profits, reduced costs, increased share price (organizational performance); faster response to key business issues, improved business processes, creation of new business opportunity (business performance); increased market size and share, better customer handling, enhanced product or service quality (market performance); and enhanced intellectual property, increased adaptation capability and increased innovation (intellectual capital (Vidović 6).
According to Stewart (1997), intellectual capital refers to any intellectual material, which can be put to use to create wealth, including information, knowledge, intellectual property and even experience (Bontis, 42).