Knowledge Management in Pharmaceutical Organizations: Theory and Practice

Abstract

Introduction: The development of information technologies and the growing significance of intellectual capital compel managers to rethink the use of knowledge in business today. Knowledge management has been introduced into managers’ work and so has begun a search for models to guide that work. The purpose of this article is to analyze the practice of knowledge management in pharmaceutical organizations in Bulgaria and to familiarize the audience with the most significant theoretical models for creating knowledge management strategies for companies in the pharmaceutical business.
Materials and Methods: The article draws on scholarly literature on knowledge management with an emphasis on theoretical models of knowledge management strategy formation suitable pharmaceutical organizations. A content analysis was conducted with class papers written by students in the Knowledge Management for Pharmaceutical Organizations class from the master’s program in Pharmaceutical Management and Care at Medical University Varna.
Results and Discussion: Two theoretical models are examined – the Knowledge Codification strategy, stressing codification, preservation and reuse of knowledge by means of organizational data bases, and the Knowledge Personalization strategy, focused on interpersonal dialogue, knowledge transfer via brainstorming and group reflection among co-workers. The competition on the pharmaceutical market is intense and the companies need to improve their knowledge management strategy in order to stay competitive. The managers of pharmacies from our sample fully understand the necessity of increasing the intellectual capital of their firms by the accumulation and transfer of knowledge. They widely practice the transfer of knowledge through direct face-to-face contact among the company workers. Simultaneously, they actively seek forms of disseminating product knowledge among clients and wider audiences. After engaging with the codification and personalization strategies for knowledge management the majority of the master’s program participants who work in pharmacies think that the codification strategy would be very effective in their practice. The creation of a data base with organizational knowledge all employees would have access to the knowledge, know-how and experience of the whole collective, which will accelerate the professionalization of each employee. Such a process is especially important for new and inexperienced workers as it will allow them to reduce their time-to-competence and become fully productive. In addition, the employee knowledge data base would mitigate the loss of knowledge for pharmacies when employees with precious practical experience leave the company. In comparison, big pharmaceutical companies (as represented by the students) involved in research and development work find more promising the knowledge personalization strategy.
Conclusions: Master’s students from the Knowledge Management for Pharmaceutical Organizations class propose their visions for knowledge management strategies in the pharmaceutical business as they combine new knowledge obtained in class, their study of scholarly sources and their practical work experience.