| As the new millennium begins, the design and development of knowledge management practices and systems is at the forefront of value-creation efforts in the private sector. The design of computer systems to serve knowledge management needs has become the primary spending target for organizations planning for the future. Despite the best efforts of systems designers, however, the choices made by (human) users of these systems can render even the most sophisticated technology useless. This study examined the cultural components that help or hinder the transfer of best practices within an organization, the core of knowledge management. Several concepts central to situated learning such as shared meaning, legitimate peripheral participation, and the use of narrative in learning, could significantly shape organizational culture as well as influence the design, development, and effective implementation of knowledge management systems.; Past and present commentary on situated learning was used to create a research framework. This framework was then focused using a review of current scholarship on knowledge management. Interview questions were created to elicit responses concerning the experiences of members within a large organization related to the cultural elements within the organization that helped or hindered the sharing of knowledge across organizational boundaries.; This qualitative study used a semi-structured interview technique, including time for the relation of “critical incident” stories relevant to the informants' experiences within the case study organization related to the sharing of internal best practices. The interviews were then transcribed and analyzed to determine to what extent, if any, organizational culture affected the case study organization's ability to effectively build a knowledge management practice. In addition to interviews, data in the form of documents (memoranda, electronic mail, policies, etc.) and meeting observations in the form of field notes were collected and analyzed.; This study intended to serve multiple purposes. Initially, the results post-study will inform the design of educational and cultural support needed by members of the case study organization. Next, organizations preparing to invest in building a knowledge management practice will gain information regarding the types of changes related to organizational culture to support the effective internal transfer of best practices. In addition, this information may help organizations assess their expected return on investment in a knowledge management system more accurately. Finally, refinements in the design of knowledge management systems may be assisted given the results of this study. |