How to create business value in the knowledge economy: Accelerating thoughts of Peter F. Drucker

Abstract

Purpose

The main purpose of this paper is to explore and revitalise key contributions of Peter Drucker for the understanding of how changing conditions in the economy radically alter the ways business value is created. Second, the authors wish to demonstrate how the changes in key economic resources pose altogether different challenges and opportunities for management research and practice.

Design/methodology/approach

Taking Peter F. Drucker as a point of departure, the paper presents a conceptual reflection of the conditions and new challenges for the creation of business. Drucker's insights are discussed and accelerated with a philosophical and sociologically inspired position on management.

Findings

The paper demonstrates that the creation of business value in the knowledge economy is highly immaterial and socially embedded. This demands a broadening of perspective to (ontologically) encompass both the technical and the social. Production and the value of consumption cannot be measured independently of the affects produced in the consuming, social subject.

Practical implications

The paper helps to conceptualise the productivity of knowledge work in the new economy in order to direct managerial practice towards the basics of value driving production.

Social implications

Both the production of business value as well as the working conditions of this production must be readdressed in respect of both the creative and the repressive forces of how social subjects are formed.

Originality/value

The paper illustrates that the economy is faced with new challenges following the changing relationship between the creation of business value from the optimisation and exploitation of knowledge as the new key economic resource.

Citation

Bang, A., Mølgaard Cleemann, C. and Bramming, P. (2010), "How to create business value in the knowledge economy: Accelerating thoughts of Peter F. Drucker", Management Decision, Vol. 48 No. 4, pp. 616-627. https://doi.org/10.1108/00251741011041382