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Purpose

The purpose of this paper is to provide theoretical insights into an imminent problem of knowledge management. Through the reflection on the impact of subjectivity in knowledge production, the object‐subject divide is to be analyzed.

Design/methodology/approach

The starting point is that knowledge management is far from being management of objective truth. The paper shows how the transformation of information and signals into knowledge is affected by mind sets and how these mind sets may differ according to individual and cultural parameters. This means that any kind of diversity finds its expression in cognitive diversity and finally also in knowledge diversity. This paper is based on a review of the literature in the field of behavioral economics and where it overlaps with economics and psychology.

Findings

The probability of misunderstanding increases the overlap of individual mindsets. Even if there are sophisticated technologies which support the management of knowledge, the knowledge product by itself can neither be managed nor effectively be controlled.

Research limitations/implications

The theoretical discussion gives room for empirical testing, i.e. in experiments.

Practical implications

The value of knowledge management depends on the accuracy of data gathering, but the probability of misunderstanding increases the overlap of individual mindsets.

Originality/value

The paper looks critically at a management tool that tries to manage the most important resource in the company and which is too often considered as a merely technological challenge.

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