Converting knowledge into value

Purpose – The purpose of this paper is to describe the conversion of knowledge into value by examining the confluence of service-dominant logic (S-D logic), supply chain management (SCM), human resource management (HRM), and neuroeconomics. S-D logic suggests that knowledge is the raw material of value creation. SCM provides an organized foundation to study the conversion of raw materials into value. HRM recognizes the centrality of human decisions in the process of converting knowledge into value. Neuroscience gives insight into the efficiency and effectiveness of the human decisions processes. Global SCM provides more than markets and raw materials – global SCM provides the human resources central to value creation. Design/methodology/approach – This paper combines literature review with interviews from members of supply chain teams engaged in performance-based logistics (PBL) to develop a model of the S-D logic knowledge conversion process. Findings – The model describes individual-based decision constructs managers can expect to face as they convert knowledge, from a global supply chain team, into value. The model relates the decision maker mindset, based in neuroscience principals, to the efficiency of the knowledge conversion process. These principals are extended to suggest how managers can modulate human resource processes to improve the efficiency of economic exchange and increase supply chain resiliency. Research limitations/implications – This paper provides theoretical and practical insight into how differences in culture, neuronal predisposition, and genetics may influence managerial decisions. These findings provide a mechanism that researchers and managers may take to expand the boundaries of HRM in a global supply chain. Originality/value – This work uses a foundation of SCM research to explain efficient conversion in a knowledge-based economy. This perspective demonstrates the criticality of global HRM mindsets and decision processes necessary to achieve competitive advantage in a knowledge-based economy. This provides a context for the study and improvement of neuroeconomic efficiency of firms.